Professional Tax

[zulfiqarqalandar]

Dear all

Please help me about, what is professional tax why dedction and implementation.

[faisal_desperado]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zulfiqarqalandar</i>
<br />Dear all

Please help me about, what is professional tax why dedction and implementation.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Professional tax is levied under the Sindh Finance Act, 1964, as per which, all those employers , who start any Trade, Business, professions etc. then it must intimate the same with in 30 days of commencing the same to District Excise And Taxation Office in the form of PCT - 6.

The basis of Professional tax is to bring various categories of persons engaged in different trade, callings and professions.

<b>Category 1.</b> Rs.150/- per salaried person whose salary is taxable under Income Tax Law.

<b>Category 2.</b> All limited companies, modarbas, mutual funds and any other corporate body registered under Company Law.

<b>Category 3.</b> Importers and Exporters licence holder/owners of industry/factory and commercial establishments, contractor, suppliers, wholesaler, stockest, medical practitioner, Architect, Accountant, Car Dealer, Real Estate Agencies etc; (which should be on partnership or proprietorship).

<b>Category 4.</b> Rs.500/- per annum on the establishments which are not Income Tax assesses.

<b>Category 5. </b> Rs.2500/= per annum on all petrol pumps/CNG filing stations

Different provinces act on the rules as applicable in that province,the aforementioned rules are applicable to the Province of sindh, however the basis of professional tax is the same regardless of provinces.

Best Regards,

[zulfiqarqalandar]

Thanks,
Faisal for reply, but if it is possible please arrange information about of Professional Tax in Punjab.

[faisal_desperado]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zulfiqarqalandar</i>
<br />Thanks,
Faisal for reply, but if it is possible please arrange information about of Professional Tax in Punjab.

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear ,
Following link might help you, exhibit the 6th page.

http//www.smeda.org/downloads/AppendixIII-TradeinServices.pdf

Best Regards,

[abbas_chinikham]

Faisal,

I am bit confuse about the category u mentioned .. Please explain if possible !

[faisal_desperado]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by abbas_chinikham</i>
<br />Faisal,

I am bit confuse about the category u mentioned .. Please explain if possible !
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear,
what is misunderstanding?
Note the following examples,
<b>Category 1</b> If your company has 20 employees, out of those, salary of 10 employees is subjected to the income tax deduction u/s 149, then Rs. 1500 (150*10)will be the amount of professional tax regardless of company's tax obligation toward professional.
<b>Category 4</b> Those establishments, whose income is not subjected to the taxation under Division 2 of part 1 of first schedule, shall have to pay Rs. 500 toward professional tax obligation.

In my opinion, Other categories do not require any explanation.

Best Regards,

[awaisaftab]

As I have understood in the light of information provided by Faisal Bhayee that it is a local or provincial tax. Just like as education cess is levied in AJK.

Faisal you ussually found on Tax Forum. Please participate on other forums also.
Regards,

Awais Aftab

[faisal_desperado]

Dear Awais,
Professional Tax is levied on provincial basis, It may be levied by different names on different provinces, However , in Karachi, many of those taxes are imposed which are not found in other cities.

Thanks for your encouragement for contributing on other forums, I hardly have time to even contribute on any forum like other professional members consecrate their precious time for the forum,
However, i will try best to be found on other forums also.

Best Regards,

[LapTop]

http//www.fdsindh.gov.pk/site/userfiles/1214650532_84179.pdf