Provincial Professional Tax

The Professional Tax is directed under the arrangements of The Punjab Finance Act 1977 and the Punjab Professions and Trade Tax Rules 1977. This assessment is imposed and gathered on/from the people or class of people occupied with a calling, exchange, calling, or work in the Province of Punjab and it will come into power on and from the primary day of July under area 1 (3) of the Punjab Finance Act, 1977.

Provincial Professional Tax 

History of Professional Tax :

It was appropriately collected in 1964 as PKR. 30/ - for each Profession, Trade, Calling and Employment under Punjab Finance Act, 1964 yet it was made an appropriate shape under the Punjab Finance Act, 1977 and 6 unique classes were characterized the first time. The greatest furthest reaches of the toll capable assessment was PKR. 5000/ - . In any case, the most recent situation of the said charge was concluded in 1999 as follows: The correction in the Limitation Act, 1941 made by Federal Parliament, vide segment 2 of the Federal Finance Act, 1999, the change made in the second timetable to the Punjab Finance Act,1977 vide segment 6 of the Punjab Finance Act, 1977 had gotten excess. Thusly, the Government of Punjab had quit making appraisal and recuperation of expert duty once demanded based on payable annual expense at the pace of 1% under the arrangement of segment 6 of the Punjab Finance Act, 1977 and had returned to the past plan framing the premise of evaluation of expert assessment as per the alteration made by the Federal Parliament in the Limitation Act of 1941 vide segment 2 of the Federal Finance Act of 1999 and resulting sanctioning with this impact from 01.07.1977 rather than 01.07.1999 by the Punjab Government in complete adherence to the arrangement of area 4 of the Federal Finance Act, 2006. Under Article 163 of the constitution of 1973, Tax on callings, exchange, reasons for living or business is a common duty. Thusly all utilitarian foundations/units of the enlisted in business/proficient exercises in the region of Punjab are at risk to be evaluated to proficient Tax under Section 3 of the Punjab Finance Act, 1977 and the subsequent timetable made thereunder. In this setting, it is additionally presented that vide area 4 of the Federal Finance Act of 2006 the Federal parliament has offered impact to the said alteration in the Limitation Act of 1941 from 01.07.1977 rather than 01.07.1999. Hence, the charge of expert assessment up to the restriction of PKR. 100,000/ - in regard of evaluates has been legitimately held substantial with impact from 01.07.1977.

Steps for in the event of Computerized Approach to ETO Professional Tax

Steps for Self-Assessment

Take 3 duplicates of print and store them into any NBP/SBP branch Manual Approach to ETO Professional Tax ETO Professional Tax issues Demand/Enrollment No. to the Applicant on the same day by embracing the following advances Submit essential data in regards to your business and date of its beginning OR Registration Date with any authority alongside the followings: ETO Professional Tax will give a Payment Challan (PFT-2) on 32-An appropriately Store Professional Tax in any part of NBP/SBP in Punjab Give a duplicate of Paid Challan to ETO Professional Tax

Clearance Certificate Of Professional Tax

Application from the owner in plain paper

A person engaged in More Than one Business:

In the event that an individual is occupied with more than one Business, exchange calling, or business he will offer the duty just in appreciation of one such calling, exchange, calling, or work for which pace of assessment is the most elevated under area 3 (2) of Punjab Finance Act 1977.

System of Survey

The greater part of the overview was made by close-to-home visits to the allocated circles by the Inspector, which is the regular yet most legitimate wellspring of study and still being used in light of portability of the units time to time. In any case, new ways were embraced during the most recent few years. Registry of Industrial Establishments Punjab Business catalog SECP List of enrolled organizations The rundown from the Chamber of Commerce Records from Educational Departments and so forth Serving of Notices Enrolled underneath are the 3 kinds of starting notification are served to assessees: First Notice Following data and archives are requested from the assessee for the appraisal of duty under area 3 of Punjab Finance Act 1977 revised in 1999 and 2000 inside the notice period Date of opening of the workplace with narrative proof Copy of fuse declaration in the event that it is a fused organization Settled up capital of the organization with a narrative proof for example structure "A" recognized by SECP Estimation of import/send out during the years to be burdened with narrative proof (P-Copy of Income Tax Returns for the said years) Year shrewd estimation of work done/Services/Supplied products to the Federal/Provincial/Semi-Government office or an organization or a Factory or a business foundation or an independent or semi self-ruling or semi self-governing association or any nearby power, with narrative proof Number of representatives Ist and last personal expense forms recognize by Income Tax Department Proficient Tax receipts whenever paid any during a years ago Second Notice Token of the main notification, on the termination of the specified period. Third Notice Token of the over two notifications and last freedom is given to the assessee to be heard. Some Special Notices are additionally served Last Call Notice Ex-Parte Decision, The segment 4 (2) of Punjab Profession and Trade Tax Rules 1977 give the Assessing Authority District Excise and Taxation Officer capacity to choose the matter exparte on greatest tax collection with 100% punishment. Request Notice Request notice is given against those assessees who are now evaluated or chosen exparte with the 32-A Challan structure, inside the time frame at the very least 30 days in the wake of serving the notification under segment 6 of the Punjab Professions and Trade Tax Rules 1977. In the event that the assessee doesn't make any activity for the installment of surveyed charge following technique is embraced under Land Revenue Act, 1967, vide the Section 6 of Punjab Finance Act 1977. Notice before Arrest Warrants or Attachment Under area 81/82 of the Punjab Land Revenue Act, 1967. Capture Warrants Connection orders Under Punjab Land Revenue Act, 1967 An appeal in Case of Objection: On the off chance that assessee has any protest about the appraisal, he has the option to offer before Director Excise and Taxation under segment 4 (3) of Punjab Profession and Trade Tax Rules, 1977 inside 30 days and the Appellate Authority can request to charge the entire duty or to discount. Request Register: Every one of the surveyed units is written in the Demand Register, in which every one of the paid sums just as unpaid debts is kept up as record under segment 11 of the Punjab Professions and Trade Tax Rules, 1977 in Form P.F.T-3. Taxing Year: The taxing year is from first July to 30th June (Fiscal Year), under area 1 (3) of the Punjab Finance Act, 1977. Payment Duration: Each individual at risk to pay the expense will before the 31st day of August, in each scheduled year, outfit to the District and Taxation Officer an assertion giving his name, address, nature of his calling, exchange calling or business. Crediting of Amount: Each individual will credit the measure of the assessment in the closest depository in Form P.R.T-2 or send the equivalent to District Excise and Taxation Officer by postal request by a mind the State Bank of Pakistan, National Bank of Pakistan or some other bank having clearing accounts with both of these banks. Deleting of Demand: On the off chance that any individual at risk to pay charge spasmodic the exchange, calling, work or approaching the premise of which he is responsible to pay the assessment such individual will inside 30 days of his stopping such exchange, calling, business or calling tell the reality to the District Excise and Taxation Officer, under segment 10 of the Punjab Professions and Trade Tax Rules, 1977

Legal Opinion Sample

The General Manager (Finance),

M/s. ____________,

LAHORE.

 

 

LEGAL OPINION

 

 

Dear Sir,

 

With reference to your raised query regarding admissibility & chargeability of professional tax to ____________ being an autonomous body.

In this regard, it is stated for your kind perusal that the professional tax is levied and collected on/from the persons or class of persons engaged in a profession, trade, calling, or employment in the Province of the Punjab and were into force on and from the first day of July under section 1 (3) of the Punjab Finance Act, 1977.

Furthermore, section 3 of the Punjab Finance Act, 1977 describes the persons/class of persons upon which the professional tax is imposed. In this regard said section is reproduced for ready reference:-

3.   Professional Tax on Persson  Doing Business

 

(1)      With effect from 1st July, 1977, there shall be levied and collected from the persons or classes of persons mentioned in column 2 of the Second Schedule to this Act engaged in a profession, trade, calling or employment wholly or partly in the Province of Punjab a tax for each financial year at the rates mentioned in column 3 of the said Schedule.

(2)      If a person is engaged in more than one profession, trade, calling or employment he shall pay the tax only in respect of one such profession, trade, calling or employment for which rate of tax is the highest.

 

(3)      The Government may exempt any person or class of persons from the payment of the tax.

(4)      Sec: 11 of the provincial The finance act (W.P. Act XXXIV of 1964) is hereby repealed.

(5)      A person who fails to pay the tax within the prescribed time, shall, in addition to the amount of tax, be liable to pay a penalty not exceeding the amount of tax.

That, Section 3 read with Second Schedule of the Punjab Finance Act, 1977 prescribes the applicable rates of the professional tax levied on the persons/class of persons and same is reproduced below for the ready reference:

 

SECOND SCHEDULE

(SECTION 3)

 

Contractors, builders, and property developers, who during the preceding financial year supplied to the Federal or the Provincial Government or a company or a factory or a commercial establishment of an autonomous or a semi-autonomous organization or any Local Authority goods, commodities, and services of the value–

1. (i)  not exceeding rupees 1 million   Rs.500

(ii)  exceeding rupees 1 million but not exceeding rupees 10 million  Rs.3,000

(iii)  more than 10 million but less than rupees 50 million Rs.5,000

(iv) exceeding rupees 50 million 10,000

Keeping in view the above-published law and the respective rates prescribed in the above-mentioned schedule it is drawn out that the ____________ being an autonomous body also falls in the categories prescribed for the levy of the professional tax, as carries out the business in the province of Punjab, is liable to pay the professional tax in the same province.

The above-elaborated clarification would be satisfactory regarding the admissibility and chargeability of the professional tax upon company at the applicable rates prescribed under the above-mentioned schedule and statutory law.

This opinion only represents our best judgment regarding the application of federal as well as provincial tax laws arising under the Code, existing judicial decisions, administrative regulations and published rulings and procedures. Our opinion is not binding upon the Internal Revenue Service or the Courts, and the Internal Revenue Service is not precluded from successfully asserting a contrary position. No assurance can be given that future legislative, judicial, or administrative changes, on either a prospective or retroactive basis, would not adversely affect the accuracy of the conclusions stated herein.

Nevertheless, we undertake the responsibility to advise you of any new developments in the application or interpretation of the federal as well as provincial tax laws.

This opinion is given for your sole benefit and may not be disclosed or relied upon by any other person without our prior written consent.

Thanking you,

 

Advocate High Court