What is Challan and how is it a part of Professional Tax Act? Professional Tax is a state-imposed tax on income earned from a profession or employment, and it is collected by the state's Commercial Tax Department and Challan is a part of it.
In this article, we will brush up through Form X- Challan in Bihar state Professional tax. Following are the topics covered:
Bihar Professional Tax Act, 2011
The Bihar State Tax on Professionals, Trades, Callings, and Employment Act, 2011 (the "Bihar PT Act") was enacted to levy a tax on professions, trades, callings, and employments. It covers the entire state of Bihar.
In the case of employment, the employer must deduct the tax from the salary and deposit it with the State Government, as well as provide a return to the tax department in the authorized form and with confirmation of tax payment within a given time frame. Individual professionals must pay their taxes to the government directly as stipulated by the Professional Tax Rules.
The amount of professional tax deducted/payable by an employee/professional varies by state, depending on the slabs established by the individual states under the Professions, Trades, Callings, and Employments Act & Rules.
Only some states and union territories levy a professional tax; others do not.
Compliance
- Form I - Application for Certificate of Registration / Amendment of Certificate of Registration
- Form IA - Application for Enrolment
- Form II - Certificate of Registration
- Form IIA - Certificate of Enrolment
- Form III - Professional Tax Register
- Form IV - Statement of Deduction
- Form V - Statement of Deduction Deposited in the Treasury
- Form VI - Certificate of Tax Deducted by Employer
- Form VII - Certificate of Tax Paid / Payable by Employee / Professional
- Form VIII - Returns by person making deduction from salary/wages payable to employees
- Form IX - Returns by person enrolled under the Act
- Form X - Challan
Form X - Challan
The Bihar State Tax on Professionals, Trades, Callings, and Employment Act, 2011 (the "Bihar PT Act") was enacted to levy a tax on professions, trades, callings, and employments. Following is the Form:
PT Slab
Registration
(1) Every employer required to be registered under Section 5 must submit an application for registration under the Act in Form PT-I to the In-charge of the circle whose jurisdiction the employer's office is located. Such an application for registration by an employer who has employed persons before the coming into force of these Rules shall be submitted within seven days of the employer being required to be registered and shall be filed in an electronic manner on the Commercial Taxes Department's official website, and the said application shall be processed in the manner hereinafter specified:
Provided, however, that such an application for registration by an employer who has employed persons before the coming into force of these Rules shall be made within thirty days of the coming into force of these Rules.
(2) (a) Every employer must file FORM PT-I on the Commercial Taxes Department's official website to state his Permanent Account Number, Name as Per PAN, mobile number, email address, and any other information required.
(b) The Permanent Account Number will be authenticated electronically through the Commercial Taxes Department's official website using the Central Board of Direct Taxes' database.
(c) A one-time password given to the mobile number will be used to verify it, and
(d) a separate one-time password will be used to verify the email address declared.
(e) Following successful verification of the applicant's PAN, mobile number, and email address, the applicant must electronically submit an application in FORM PT-I, along with the required papers, to the Commercial Taxes Department's official websites.
(f) An electronic acknowledgment will be sent to the applicant upon successful submission of the registration application under subsection (e).
(3) (a) The application will be forwarded to the concerned circle's Tax Assessing Authority, who, after verifying that all of the application's columns have been properly filled in, will approve the grant of registration in Form PT-II within one working day of the application's submission, and a certificate of registration will be made available to the applicant on the Commercial Taxes Department's official website.
(b) The application for grant of registration shall be deemed to have been approved and a certificate of registration in Form PT-II shall be made available to the applicant on the official website of the Commercial Taxes Department if the Tax Assessing Authority of the circle fails to take any action within one working day of the date of submission of the application.
(c) The registration number allocated to the employer shall be the 'Tax Deduction and Collection Account Number,' allotted to the employer under the Income Tax Act, 1961, prefixed by the numerals "10" and suffixed by the letter 'R' on the certificate indicated in clauses (a) and (b) of sub-rule (3).
Provided, however, that if an employer has not been assigned a Tax Deduction and Collection Account Number under the Income Tax Act of 1961, the registration number will be the Permanent Account Number, which will be prefixed by the numbers "10" and suffixed by the letter "R."
(4) The certificate of registration must be digitally signed and made available on the Commercial Taxes Department's official website.
The term 'employer' refers to a company, firm, society, association of persons, undivided Hindu family, body corporate, board, Authority, Undertaking, or Corporation, as the case may be, that has hired persons liable to pay tax under the Act.]
Enrollment
(1) Every taxpayer who is subject to the second proviso to Section 5 and sub-section (2) of Section 6 must apply to the In-charge of the Circle within whose authority the assessee resides in Form PT-IA for enrollment under the Act. Such an application must be made in an electronic format on the Commercial Taxes Department's official website within seven days of the assessee becoming liable to pay tax under the Act, and it must be handled in the following manner:
Provided, however, that an assessee engaged in any profession, trade, calling, or employment prior to the effective date of these Rules must submit such an application for enrollment within thirty days of the effective date of these Rules.
(2) (a) Every person who is liable to be enlisted under these Rules must file FORM PT-IA on the Commercial Taxes Department's official website and state his Permanent Account Number, Name as per PAN, mobile number, email address, and any other information required.
(b) The Permanent Account Number will be authenticated by the Central Board of Direct Taxes' database via the Commercial Taxes Department's official website.
(c) The applicant's mobile number will be validated via a one-time password given to that number, and the applicant's email address will be verified via a separate one-time password sent to that email address.
(e) Following successful verification of the applicant's PAN, mobile number, and email address, the applicant must electronically submit an application in FORM PT-IA to the Commercial Taxes Department's official websites.
(f) An electronic acknowledgment will be sent to the applicant upon successful submission of the registration application under subsection (e).
(3) (a) The application will be forwarded to the concerned circle's Tax Assessing Authority, who, after verifying that all of the application's columns have been properly filled in, will approve the grant of registration in Form PT-IIA within one working day of the application's submission, and a certificate of enrollment will be made available to the applicant on the Commercial Taxes Department's official website.
(b) The application for grant of enrollment shall be deemed approved and a certificate of enrollment in Form PT-IIA shall be made available to the applicant on the official website of the Commercial Taxes Department if the Tax Assessing Authority of the circle fails to take any action within one working day of the date of submission of the application.
(c) The enrollment number allotted to the assessee shall appear on the certificate specified in clauses (a) and (b) of sub-rule (3), and the enrollment number shall be the 'Permanent Account Number,' allotted to the assessee under the Income Tax Act, 1961, prefixed by the digits "10" and suffixed by the letter 'E.']
Returns
(1) On or before the end of November each year, every employer registered under the Act must submit to the specified authorities an annual return in form PT-VIII containing information of the tax deducted by him for the year.
(2) Every individual enrolled under the Act is required to file an annual return in form PT-IX with the prescribed authority by the end of November each year.
(3) The returns referred to in sub-rules (1) and (2) must be filed and disposed of in the manner specified by the Commissioner by notification.
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Key takeaways
- The tax payable under this Act by any person earning salary or wages shall be deducted by his employer from the salary or wages payable to such person before such salary or wages is paid to such person, and such employer shall be liable to pay tax on behalf of all such persons, regardless of whether such deduction has been made or not, when the salary or wages is paid to such persons: Provided, however, that if the employer is a state or federal government official, the way in which the employer discharges the above mentioned liability shall be as prescribed.
- The authority empowered for assessment, reassessment, collection of tax, and enforcement of payment of tax, interest, and penalty payable by a dealer under the Bihar Value Added Tax Act 2005 (Act 27 of 2005) shall do the work of assessment, reassessment, collection of tax, and enforcement of payment of tax, interest, and penalty payable under this Act, subject to the other provisions of this Act and the Rules framed thereunder.
- Members of the Union armed forces stationed in any part of Bihar are exempt from the provisions of this Act. The State Government may exempt any class or group of persons from taxation by issuing a notification in the Official Gazette, subject to the requirements and restrictions mentioned in the notification.
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