Profession Tax

Profession Tax is a tax on professions and levied under the A.P. tax on Professions, Trades, Callings and Employments Act 1987 and Rules 1987.  Every person engaged in any profession, trade, calling or employment in the state is liable to tax as specified in the schedule to the act.  For the purpose of the transport sector the amount is Rs. 750 per vehicle subject to a maximum of Rs. 2,500 in addition to Rs. 2,500 per company and each of its branches.

For the purpose of the Transport Sector any permit holder is expected to pay a profession tax at the rate of Rs. 750 per vehicle per year subject to a maximum of Rs. 2,500.  In addition if the permit holder runs a transport company he shall be liable to pay an amount of Rs. 2,500 for the company and a similar amount for each of its branches.

The transport department has been authorized to collect the profession tax from all permit holders as they have regular transactions with the department.  henceforth, profession tax shall be collected on an annual basis when the permit holder visits the transport office.  The following are the steps tto be followed to pay profession tax:

1. Secure an Enrolment number from the commercial tax department through the concerned DCTO.
2. The Enrolment number forms the basis for collection of the profession tax
3. once the Enrolment number is secured, submit it to the RTO office and get all the vehicles you hold in your name to the RTO office. Remember that the name in the enrolment number should be the same as the permit holder.
4. Profession tax will be levied at the rate of Rs. 750 per vehicle subject to a maximum of Rs. 2,500 per year
5. The company should also pay an amount of Rs. 2,500 per year and also pay for each of its branches.