Solution for Problems faced by taxpayer for filing Profession Tax Return


Maharashtra Sales Tax Department has recently issued a circular regarding problems faced by the taxpayer for filing Profession Tax Returns.

Arjuna (Fictional Character): Krishna, the government recently has published a circular in relation to Profession tax. So what is given in that? 

Krishna(Fictional Character)Arjuna,based on the data available with the department, periodicity of the tax payer was set and displayed on the department’s website at the beginning of the year for the period 2018-19. However, representations have been received about the incorrectness of periodicity set by the  department. In order to address these references, utility was created and made available to tax payer to change the periodicity from monthly to yearly and yearly to monthly in consonance with the legal provisions.

Arjuna: Krishna, when the employer taxpayer is required to file the Profession tax return?

Krishna: Arjuna,Employer whose tax liability exceeds Rs. 50000/- in the previous year are required to file monthly returns. Remaining tax payers have to file yearly return. Newly registered tax payers in any year are also required to file monthly returns in that year. For subsequent year, their periodicity depends on the tax payment of the previous year.

Arjuna: Krishna, What the taxpayer needs to do if incorrect periodicity is set by the department?

Krishna: Arjuna,The taxpayers desirous to change their return periodicity for the year 2018-19 should email their requests to [email protected]

Arjuna: Krishna, what are the other terms and conditions for change the return periodicity?

Krishna: Arjuna, following are the other terms and conditions for change the return periodicity:

1.     The tax payer who has set his periodicity yearly and has paid tax exceeding Rs.50000/- in the previous year can request to set the periodicity as monthly.

2.     The tax payer who has set his periodicity monthly and whose tax liability was less than Rs. 50000/- in the previous year can request to set his periodicity as yearly.

3.     If the tax payer has changed his periodicity from annual to monthly and has filed even a single return for that periodicity his periodicity cannot be  changed again to yearly despite his payment of tax in the previous year being less than Rs, 50000/- He will have to continue filing monthly returns for the current financial year that is 2018-19.

4.     He may attach the payment details of the financial year 2017-18 to his mail

5.     In case of any difficulty he can approach his Profession Tax Officer who will guide him to follow the procedures

6.     Mail requesting change of return periodicity for the year 2018-19 should be sent on or before 31st December 2018.

7.     The provisions of this circular are applicable for financial year 2018-19 only.

Arjuna: Krishna,is there any late fees leviable on the late filing of PT returns?

Krishna: Arjuna,The waiver of late fee is available up to 31 Dec 2018 for delay in filing returns for the month’s up-to Nov 2018

Arjuna:What one should learn from this?

Krishna: Arjuna,The periodicity of the PT returns is set on the basis of payment made in the previous year. If the incorrect periodicity is set, then the taxpayers have to file a correct request. Because, one opportunity to correct is given due to fault of the government. But if the taxpayer do not grab this opportunity to rectify the mistake, then this mistake would not be forgived.

Courtesy : CA Umesh Sharma

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