LexThe Madhya Pradesh Professional Tax 1995
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Madhya Pradesh Professional Tax Act, 1995
1(No. 16 of 1995)
An act to provide for the levy of a t ax on professions, trades, callings and
employments in Madhya Pradesh.
Be it enacted by the Madhya Pradesh Legisl ature in the Forty-Sixth year of the
Republic of India as follows :
Sec. 1 : Short title, extent and commencement
(1) This Act may be called the Madhya Pradesh Vritti Kar Adhiniyam, 1995.
(2) It extends to the whole of Madhya Pradesh.
(3) It shall be deemed to have come into force on the 1st day of April, 1995.
Sec. 2 : Definitions
In this Act unless the context otherwise requires :
(a) Profession Tax Appellate Authority means an officer of the rank of an
Appellate Deputy Commissioner or Additional Appellate Deputy Commissioner of
Commercial Tax appointed under Section 3 of the Madhya Pradesh Vanijyik Kar
Adhiniyam, 1994 (No. 5 of 1995) as may, by notification, be authorised by the State
Government to perform such functions of the Profession Tax Appellate Authority
under this Act as may be specified in the said notification;
(b) 2Profession Tax Assessing Authority means such officer not below the rank of
an Assistant Commercial Tax Officer appointed under Section 3 of the Madhya
Pradesh Vanijyik Kar Adhiniyam, 1994 (No. 5 of 1995), as may, by Notification, be
authorised by the State Government to pe rform such functions of the Profession Tax
Assessing Authority under this Act as may be specified in the said notification.
(c) Employee means a person employed on 3[salary or wage] and includes -
(i) A Government servant receiving pay from the revenues of the Central
Government or any State Government or the Railway Fund;
(ii) A person in the service of a body whether incorporated or not, which is
owned or controlled by the Central Government or any State Government
where the body operates in any part of the State, even through its
headquarters may be outside the State;
(iii) A person engaged in any employment of an employer not covered by items
(i) and (ii) above;
1 Received the assent of the Governor on the 10.5.95; Assent first published in Madhya Pradesh
Rajpatra dt. 16.5.95.
2 Now in view of the Noti. No. 58, dt. 2.6.99 the Professional Tax assessment of a dealer shall be
made by the assessing authority making his assessment under MPCT Act.
3 In the Act, the word ‘salary’ wherever occu rred has been substituted by the words ‘salary or
wage’ by the Professional Tax (Amendment) Act, 1999 w.e.f. 1.5.99.
PART - IV PROFESSIONAL TAX ACT, 1995 307
(d) Employer in relation to an employee earning any [salary or w age] on regular
basis under him means the person or the officer w ho is responsible for disbursement
of such [salary or w age] and includes the h ead of the office or an establishm ent as
well as the manager or agent of the employer;
(e) Income means :
(i) Profits and gains;
(ii) dividends and interests;
(iii) the value of any benefit or perquisite , whether convertible into m oney or
not, obtained from a com pany either by a director or a person who has a
substantial interest in the company, and any sum paid by any such company
in respect of any obligations, which, but for such payment would have been
payable by the director or other pers on aforesaid, accruing or arising to a
person within the State from any profession, trade or calling other than
agriculture.
(f) Person m eans any person w ho is engaged in any profession, trade, calling or
employment in the State of Madhy a Pradesh and includes a H indu undivided fam ily,
firm, company, corporation or other corporate body , any society, club or association
so engaged but does not include any person w ho earns [salary or w age] on casual
basis;
(g) Previous year m eans tw elve m onths expiring on 31st March immediately
preceding the year in respect of which assessment is to be made;
1[(h) Salary or Wages includes pay, dearness allowance and all other rem unerations
including allowances received by any person on a regular basis whether payable in
cash or kind and also includes perquisites and profits in lieu of salary as defined in
Section 17 of the Incom e Tax Act, 1961 (No. 43 of 1961) but does not include bonus
in any form and on any account, gratuity and pension]
(i) Schedule means the Schedule appended to this Act;
(j) Tax means tax payable under this Act;
(k) Year means the financial year.
Sec. 3 : Levy and collection of tax
(1) Subject to the provisions of Article 276 of the Constitution of India, and of this
Act there shall be levied and collected tax on professions, trades, callings and
employments.
(2) Every person who carries on a trade e ither him self or by an agent or
representative or who follows a profession or calling other than agriculture or w ho is
in employment either wholly or in part in Madhya Pradesh and who falls under one or
the other classes specified in colum n (2) of the Schedule shall, on the basis specified
1 Clause (h) substituted by Professional Tax (Amendment) Act, 1999 w. e.f. 1.5.99. During
16.4.96 to 30.4.99 clause (h) read as under :
(h) “Salary” shall have the same meaning as assigned to it under Section 17 of the Income
Tax Act, 1961 (No. 43 of 1961) after deductions as permissible under Section 16 of that Act
except tax payable under this Act;
Prior to 16.4.96 the provisions of clause (h) were similar to the present provisions.
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in the Schedule in respect thereto be liable to pay tax at the rate mentioned against the
class of such persons in column (3) of the said Schedule :
Provided that notwithstanding any thing contained in the Schedule, w here a
person is covered by more than one entry of the Schedule, tax under this A ct shall be
payable by such person at the highest rate of tax specified in respect of such entries.
(3) Notwithstanding anything contained in sub-section (2), any person falling in any
of the classes specified in colum n (2) ag ainst serial num ber 2 of the Schedule shall
have the right to opt, in the prescribed m anner, to pay tax on the annual incom e as
specified in colum n (2) against serial N o.1 in lieu of the tax pay able by him, and on
exercising the option such person shall be liable to pay tax at the rate specified in
column (3) against the category specified in colum n (2) against serial num ber 1
applicable to him, and for that purpose reference to [salary or w age] in serial N o. 1
shall be construed as a reference to the income of such person.
(4) Every person who opts under sub-section (3) for pay ment of tax under entry at
serial No. 1 of the Schedule shall, subject to the provisions of this Act, pay for each
financial year a tax at the rate specified in Serial No.1 of the Schedule if his income
during the previous year exceeds forty thousand rupees.
(5) Any person who is in em ployment in Madhy a Pradesh shall be deem ed to be in
employment even though he may be absent therefrom on leave or otherwise.
Sec. 4 : Employer’s liability to deduct and pay tax on behalf of employees
(1) The tax payable under this Act by any person earning a [salary or wage] shall be
deducted monthly in the prescribed manner by his employer from the [salary or wage]
payable to such person before such [salary or wage] is paid to him and such employer
shall, irrespective of whether such deduction has been m ade or not, w hen the [salary
or wage] is paid to such person, be liable to pay tax on behalf of all such persons :
Provided that if the em ployer is an officer of the Central G overnment or a State
Government, such employer shall discharge the said liability in such m anner, as may
be prescribed.
(2) When any person earning a [salary or wage] -
(a) is also covered by one or more entries other than entry 1 of the Schedule and
the rate of tax in any such other entry is m ore than the rate of tax under
entry 1 of the said Schedule,
(b) is simultaneously in employment of more than one employer,
and such person furnishes to his employer a certificate in the prescribed Form
declaring that he has been registered under sub-section (2) of Section 8 and shall pay
the tax him self, then the em ployer or em ployers of such person shall not deduct the
tax from the [salary or w age] pay able to such person and such employer or
employers, as the case may be, shall not be liable to pay tax on behalf of such person :
Provided that such person m ay opt to have the am ount of tax deducted by the
employer or em ployers from his [salar y or w age] and thereupon the am ount so
deducted shall stand adjusted towards the tax payable by such person for the year.
Sec. 5 : Computation of Income
For the purpose of com puting the incom e of a person liable to pay tax in accordance
with provisions of sub-section (3) and (4) of Section 3 the follow ing deductions shall
be made from the gross income namely :
PART - IV PROFESSIONAL TAX ACT, 1995 309
(i) [Salary or w age] of other persons engaged by him in the profession or
calling;
(ii) Rent in respect of the building to house the business as w ell as rent on
account of machinery, furniture and other sim ilar goods taken on lease or
hire;
(iii) all kinds of taxes;
(iv) repairs and renew als of im movable property let out on rent subject to a
maximum of 6.25 per cent of the annual rental value;
(v) interest on borrowed capital;
(vi) repairs of the building and rents of the premises where the business is carried
on;
(vii) electric charges in respect of business premises where the business is carried
on;
(viii) such other deductions as may be prescribed.
Sec. 6 : Power to exempt
Where the State G overnment is of the opinion that it is necessary or expedient so to
do, either in the public interest or having regard to the peculiar circumstances of any
case, it may by notification and subject to su ch conditions, if any, as it m ay specify in
the notification, exem pt any class of persons or any employer or class of employers
from the operation of all or any of the provi sions of this A ct for such period as m ay
be specified in the notification.
Sec. 7 : Taxing Authority
(1) The administration of the Act shall vest in the Com missioner of Commercial Tax
appointed under Section 3 of the Madhy a Pradesh V anijyik K ar Adhiniyam, 1994
(No. 5 of 1995) who shall for the purpose of this A ct be designated as Com missioner
Profession Tax.
(2) The Commissioner Profession Tax shall exercise the pow ers of general
superintendence and control over the authorities appointed under this Act.
(3) The Profession Tax A ssessing A uthority and the Profession Tax Appellate
Authority shall exercise such powers and perform such duties as m ay be conferred or
imposed upon them by or under this Act.
Sec. 8 : Registration
(1) Every employer, other than any officer of the Central G overnment, Railways or
the State G overnment, liable to pay tax under Section 4 shall obtain a certificate of
registration from the Profession Tax Assessing Authority in such manner and form as
may be prescribed.
(2) Every person liable to pay tax under this A ct, other than a person earning [salary
or wage] in respect of w hom the tax is pay able by the em ployer but including a
person w ho in addition to earning a [salary or wage] is also carry ing on a trade,
profession or calling other than agriculture or w ho is sim ultaneously in em ployment
of m ore than one em ployer, shall obtain a certificate of registration from the
Profession Tax Assessing Authority in such manner and form as may be prescribed.
(3) Every em ployer or person required to obtain a certificate of registration under
sub-section (1) or sub-section (2), shall within thirty days of his becom ing liable to
pay tax under this A ct apply for the certificate of registration to the Profession Tax
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Assessing Authority in the prescribed form and that authority shall, after such enquiry
as it considers necessary, within sixty days of the receipt of the application, if the
application is in order, grant the certificate of registration.
(4) Where an em ployer or person liable to registration has w ilfully failed to apply
for such certificate within the tim e specified in sub-section (3), the Procession Tax
Assessing Authority may, after giving him a reasonable opportunity of being heard,
impose penalty not exceeding rupees twenty for each day of delay subject to a
maximum of rupees two thousand five hundred.
(5) Where an employer or a person liable to registration has given false inform ation
in any application submitted under this Section, the Profession Tax Assessing
Authority may after giving him a reasona ble opportunity of being heard im pose a
penalty not exceeding rupees five hundred.
Sec. 9 : Returns to be furnished by employers
(1) Every employer registered under this Act shall furnish returns to the Profession
Tax Assessing Authority in such Form , for such period and by such date as may be
prescribed, showing therein th e [salary or wage] paid by him and the am ount of tax
deducted by him in respect thereof.
(2) Every such return shall be accompanied by a treasury challan in proof of payment
of full amount of tax due according to the re turn and a return without such proof of
payment shall not be deemed to have been duly filed.
(3) Where an employer has without reasonable cause failed to file such return within
the prescribed time, the Profession Tax A ssessing Authority may, after giving him a
reasonable opportunity of being heard, im pose upon him a penalty not exceeding
rupees twenty for each day of delay.
(4) The State Governm ent m ay, subject to such conditions as m ay be specified
exempt any employer or class of employers from furnishing returns.
Sec. 10 : Returns to be furnished by other registered persons
(1) Every person referred to in sub-section (2 ) of Section 8 shall, by the 30th June in
each financial year file before the Prof ession Tax Assessing Authority a correct and
complete return in such Form and containing such particulars as m ay be prescribed
setting forth his income in the previous year :
Provided that the Profession Tax A ssessing Authority may, for sufficient cause to
be recorded in writing, extend the date for filing the return :
Provided further that w here such person derives incom e from any profession,
trade or calling other than agriculture at places located within the territorial
jurisdiction of m ore than one Profession Tax A ssessing Authority, he shall file the
return before such Profession Tax A ssessing A uthority having jurisdiction over the
place where he normally resides.
(2) The State Government may subject to such conditions as m ay be specified,
exempt any class of persons from filing a return.
(3) Every such return shall be accompanied by a treasury challan in proof of payment
of full amount of tax due according to the re turn and a return without such proof of
payment shall not be deemed to have been duly filed.
(4) Where a person specified in sub-section (1) has w ithout reasonable cause failed
to file such return within the tim e speci fied in sub-section (1) the Profession Tax
PART - IV PROFESSIONAL TAX ACT, 1995 311
Assessing Authority may, after giving him a reasonable opportunity of being heard,
impose upon him a penalty not exceeding rupees five for each day of delay subject to
a maximum of rupees five hundred.
Sec. 11 : Assessment of tax
(1) The amount of tax due from an em ployer or person under this A ct shall be
assessed separately for each year :
Provided that w here such em ployer or person fails to furnish return by the
prescribed date or know ingly furnishes inco mplete or incorrect return for any period
of any year, he may be assessed to tax for such period.
(2) If the Profession Tax Assessing Authority is satisfied that the return filed by an
employer or person is correct and com plete, it shall by order in w riting assess the
employer or person and determine the tax payable by him on the basis of such return.
(3) (a) If the Profession Tax A ssessing Authority is not satisfied that the return filed
by an employer or person is correct and complete, it shall serve upon the em ployer or
person a notice in the prescribed Form requiring him on a date specified in the notice
to attend in person or through an author ised representative and to produce accounts
and papers in support of the return.
(b) The Profession Tax A ssessing A uthority shall, on the date specified in the
notice or as soon as may be afterwards, on examination of accounts and papers, assess
the amount of tax payable by the employer or person.
(c) If the employer or person fails to com ply with the terms of the notice or if in
the opinion of the Profession Tax A ssessing A uthority the accounts and papers are
incorrect or incomplete or unreliable, the sa id authority shall, after such enquiry as it
deems fit, or otherwise assess the tax due to the best of its judgement.
(4) If an employer or person has failed to get him self registered or being registered
has failed to file return, the Profession Tax A ssessing Authority shall, after giving the
employer or person a reasonable opportunity of being heard and after holding such
enquiry as it deem s fit or otherw ise, pass an order assessing the am ount of tax to the
best of its judgement.
Sec. 12 : Payment of tax
(1) The tax or penalty or any other amount payable under this Act shall be paid in the
prescribed manner.
(2) The amount of tax deducted by an em ployer from the [salary or w age] of his
employees shall be paid by treasury challan within ten day s of the end of the m onth
for which the deduction has been made.
(3) The amount of tax due from persons other than em ployers shall be paid for every
year :
(a) in respect of a person registered before the
commencement of a year or registered on or
before 31st August of a year.
Before 30th September of
the year.
(b) in respect of a person who is registered after 31st
August of a year.
Within thirty days of the
date of registration.
Sec. 13 : Penalty for non payment of tax
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If a em ployer or person fails w ithout reasonable cause, to m ake pay ment of any
amount of tax within the specified tim e or the date as specified in the notice of
demand, the Profession Tax A ssessing Authority may, after giving him a reasonable
opportunity of being heard, im pose upon him a penalty equal to tw o per cent per
month of the am ount of tax due subject to a maximum of two-third of the am ount of
tax due.
Sec. 14 : Notice of demand
(1) Where any tax or penalty is payable in consequence of any order passed under or
in pursuance of the provisions of this Act the Profession Tax A ssessing A uthority
shall serve on the person concerned a notice of dem and in the prescribed Form
specifying the amount so payable.
(2) The amount of tax or penalty as specified in such notice shall be paid by such
date as may be specified therein and where no date is specified, it shall be paid within
thirty days from the service of the notice of demand.
Sec. 15 : Recovery as arrears of land revenue
Any tax or penalty or part thereof remaining unpaid after due date in accordance with
the provisions of Section 14, shall be recoverable as an arrear of land revenue.
Sec. 16 : Assessment or re-assessment of tax on employers and persons escaping
assessment
(1) If for any reason, any employer or person liable to pay tax under the provisions of
this Act has not been assessed to tax or has been under assessed to tax for any year,
the Profession Tax A ssessing A uthority m ay, at any tim e within three years next
following the y ear in respect of w hich such tax has not been assessed or has been
under assessed proceed to assess or re-assess the tax pay able by such em ployer or
person in respect of that year.
(2) The assessment or re-assessm ent under sub-section (1) as the case m ay be, shall
be completed within two years from the date of initiation of such proceedings.
Sec. 17 : Appeal
(1) Any person or employer aggrieved by any order made under Sections 8, 9, 10, 11,
13, and 16 may appeal against such order to the Profession Tax Appellate Authority.
(2) No appeal shall be entertained after the expiry of thirty day s from the date of
receipt of demand notice or receipt of the order.
(3) No appeal shall be entertained, unless the am ount of tax or penalty in respect of
which the appeal is being preferred has been paid in full.
(4) The Profession Tax Appellate Authority in disposing of an appeal may :
(i) confirm, annul, reduce, enhance or otherw ise m odify the assessment or
penalty; or
(ii) set aside the assessm ent or penalty and direct the Profession Tax A ssessing
Authority which made the assessment or imposed the penalty, to pass a fresh
order after further enquiry.
(5) No order under this Section shall be passed w ithout giving the appellant or his
representative a reasonable opportunity of being heard.
Sec. 18 : Revision
(1) The Com missioner Profession Tax m ay, on his ow n m otion revise any order
PART - IV PROFESSIONAL TAX ACT, 1995 313
passed by any authority under this Act :
Provided that no order shall be revised by the Com missioner Profession Tax
under this sub-section after the expiry of three years from the date of passing of the
impugned order.
(2) No order under this Section shall be passed w ithout giving the assessee a
reasonable opportunity of being heard.
(3) The Commissioner Profession Tax may delegate his pow er under sub-section (1)
to the Additional Commissioner, Commercial Tax appointed under Section 3 of the
Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 (No. 5 of 1995).
Sec. 19 : Accounts
(1) Every employer liable to pay tax under this Act shall maintain correct particulars
of the em ployees employed under him and co rrect accounts in respect of [salary or
wage] paid to such employees.
(2) The registers or docum ents and accounts re lating to the particulars of em ployees
and [salary or wage] disbursed to them maintained by the em ployer shall be open to
inspection by the Commissioner Profession Tax.
Sec. 20 : Production and inspection of accounts and documents and search of
premises
(1) The Commissioner Profession Tax m ay inspect and search any prem ises, where
any profession, trade, calling or em ployment liable to tax under this Act is carried on
or is suspected to be carried on and m ay cause production and exam ination of books,
registers, accounts or docum ents relating thereto and m ay seize such books, registers,
accounts or documents as may be necessary :
Provided that if the Com missioner Profession Tax rem oves from the said
premises any books, registers, accounts or documents, he shall give to the person
incharge of the place a receipt describing the books, registers, accounts or documents
so removed by him and retain the same only for so long as m ay be necessary for the
purposes of examination thereof or prosecution.
(2) The Com missioner Profession Tax m ay, subject to such restrictions and
conditions as m ay be prescribed, delegate his pow ers under sub-section (1) to any
officer of and above the rank of Commercial Tax Inspector appointed under Section 3
of the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 (No. 5 of 1995).
Sec. 21 : Refunds
(1) If the Profession Tax A ssessing Authority, is satisfied that the amount of tax or
penalty paid by an em ployer or person for any year exceeds the am ount to which he
has been assessed under this A ct for that y ear, it shall cause a refund to be m ade in
cash of such amount in the manner prescribed, found to have been paid in excess.
(2) Notwithstanding the provisions of sub-s ection (1) the am ount of refund shall be
adjusted in the prescribed m anner against any arrears of tax, penalty or any other
amount due under this Act.
Sec. 22 : Power under Code of Civil Procedure
The Profession Tax A ssessing Authority, the Profession Tax A ppellate Authority and
the authority exercising powers under Section 18 shall for the purposes of this A ct,
have the sam e pow ers as are vested in a court under the Code of Civil Procedure,
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1908 (V of 1908) while trying a suit, in respect of following matters, namely :
(a) enforcing the attendance of and examining any person on oath or affirmation;
(b) compelling the production of any document; and
(c) passing such interim orders as may be necessary in the ends of justice;
and any proceeding before such authority under this Act, shall be deem ed to be a
judicial proceeding within the meaning of Section 193 of the Indian Penal Code, 1860
(XLV of 1860) and also for the purpose of Section 196 of the said Code.
Sec. 23 : Offences
(1) Any employer or person who, without sufficient cause, fails to com ply with any
of the provisions of this A ct or the rule s framed thereunder shall, on conviction be
punished with fine not exceeding two thous and five hundred rupees and when the
offence is a continuing one, with fine not exceeding twenty five rupees per day during
the period of continuance of the offence.
(2) No court shall take cognizance of any offence punishable under this Act except
with the previous sanction of such aut hority as m ay be prescribed and no Court
inferior to that of a Magistrate of the first class shall try any such offence.
Sec. 24 : Offences by companies
(1) Where an offence under this Act has been committed by a company, every person
who at the time the offence was com mitted was in charge of and was responsible to
the company for the conduct of the business of the com pany, as well as the company,
shall be deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly :
Provided that nothing contained in this sub-section shall render any such person
liable to any punishm ent, if he proves that the offence was com mitted without his
knowledge or that he had exercised all due diligence to prevent the commission of
such offence.
(2) Notwithstanding anything contained in sub-section (1) w here any offence under
this Act has been committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any neglect on the
part of any Director, Manager, Secretary or other officer of the company, such
Director, Manager, Secretary or other officer shall be deem ed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly .
Explanation - For the purpose of this Section -
(a) Company means any body corporate and includes a firm or other association
of individuals; and
(b) Director in relation to a firm, means a partner of the firm.
Sec. 25 : Power to compound offences
(1) Subject to such conditions as m ay be prescribed, the Profession Tax A ssessing
Authority, may either before or after th e institution of proceedings under this Act
permit any employer or person charged with an offence under this A ct to com pound
the offence on payment of such sum not exceeding two thousand five hundred rupees,
as the assessing authority may determine.
(2) On payment of such sum as may be determined by the Profession Tax Assessing
Authority, under sub-section (1), the accused em ployer or person shall be discharged
PART - IV PROFESSIONAL TAX ACT, 1995 315
and no further proceeding shall be taken against him in respect of the said offence.
Sec. 26 : Bar of prosecution where penalty imposed
No prosecution for contravention of any provisions of this Act shall be instituted in
respect of the sam e facts in respect of w hich a penalty has been imposed under this
Act or the rules framed thereunder.
Sec. 27 : Protection against suits or other proceedings
(1) No suit shall lie in any Civil Court to set aside or modify and assessment made or
order passed under the provisions of this Act.
(2) No prosecution, suit or other proceedings shall lie against any officer or authority
or any employer for anything done or intended to be done in good faith under this A ct
or the rules made thereunder.
Sec. 28 : Power to make rules
(1) The State Government may make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such
rules may provide for all or any of the following matters :
(a) (i) the manner in w hich tax shall be deducted by an em ployer under Section 4
from the [salary or wage] of his employees;
(ii) the manner in which liability to deduct tax on behalf of em ployees shall be
discharged, where the employer is an o fficer of the Central G overnment or a
State Government, under Section 4;
(b) the manner and Form in w hich certificate of registration shall be obtained under
sub-section (1) and (2) of Section 8;
(c) the Form in which, the period for which and the date by which returns shall be
furnished by employers under Section 9;
(d) the Form in which return shall be furnished under sub-section (1) of Section 10;
(e) the Form in w hich notice shall be served on an em ployer and person under
Section 11;
(f) the manner in which tax, penalty or any other amount payable under the Act shall
be paid;
(g) the Form of notice to be served or issued under Section 14 or Section 16,
respectively;
(h) the manner in which an appeal shall be preferred under sub-section (1) of Section
17;
(i) restrictions and conditions subject to w hich the Com missioner Profession Tax
may delegate his powers under sub-section (2) of Section 20;
(j) the manner in which refund shall be made or adjusted under Section 21;
(k) the authority for sanctioning prosecution under Section 23;
(l) the conditions subject to which offences may be compounded under Section 25;
(m) all matters which are expressly required to be prescribed under this Act.
(3) All rules m ade under this A ct shall be laid on the table of the legislative
assembly.
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SCHEDULE
(See Section 3)
Schedule of Rates of Tax on Professions, Trades, Callings and Employments
S.
No.
Class of persons Rate of tax per annum
(1) (2) (3)
1{1. Persons in employment whose annual salary or wage -
(i) does not exceed Rs. 40,000 Nil
(ii) exceeds Rs. 40,000 but does not exceed Rs.
50,000
Rs. 360 (Rs. 30 per month)
(iii) exceeds Rs. 50,000 but does not exceed Rs.
60,000
Rs. 720 (Rs. 60 per month)
(iv) exceeds Rs. 60,000 but does not exceed Rs.
80,000
Rs. 1080 (Rs. 90 per month)
2[(v) exceeds Rs. 80,000 but does not exceed Rs.
1,00,000
Rs. 1800 (Rs. 150 per month)
(vi) exceeds Rs. 1,00,000 but does not exceed
R 1 50 000
Rs. 2100 (Rs. 175 per month)
1 Sr. No. 1 and entries relating thereto subs tituted by Professional Tax (Am endment) Act, 1999
w.e.f. 1.5.99. Earlier to substitution Sr. No. 1 read as under :
1. Persons in employment whose annual salary
(i) Does not exceed rupees 40,000 Nil
(ii) Exceeds rupees 40,000 but does not exceed rupees 50,000 Rs. 500
(iii) Exceeds rupees 50,000 but does not exceed rupees 60,000 Rs. 750
(iv) Exceeds rupees 60,000 Rs. 1000
Explanation - For the purposes of this entry where a person ceases to be in employment before
the end of any year his liability to pay the tax for that period shall be proportionately reduced.
2 Clause (v) to (vii) and entries relating thereto substituted by Professional Tax (Amendment)
Act, 2001 w.e.f. 1.4.01. During 1.5.99 to 31.3.01 these clauses read as under :
(v) exceeds Rs. 80,000 but does not exceed Rs.
1,00,000
Rs. 1200 (Rs. 100 per month)
(vi) exceeds Rs. 1,00,000 but does not exceed
Rs. 1,50,000
Rs. 1440 (Rs. 120 per month)
(vii) exceeds Rs. 1,50,000 but does not exceed
Rs. 2,00,000
Rs. 1800 (Rs. 150 per month)
(viii) exceeds Rs. 2,00,000 but does not exceed
Rs. 2,50,000
Rs. 2160 (Rs. 180 per month)
(ix) exceeds Rs. 2,50,000 but does not exceed
Rs. 3,00,000
Rs. 2280 (Rs. 190 per month)
(x) exceeds Rs. 3,00,000 Rs. 2400 (Rs. 200 per month)
PART - IV PROFESSIONAL TAX ACT, 1995 317
Rs. 1,50,000
(vii) exceeds Rs. 1,50,000 Rs. 2500 (Rs. 208 per month
for eleven months and Rs.
212 for twelth month)]
Explanation - For the purpose of this entry where a person ceases to be in em ployment
before the end of any year lia bility to pay the tax for that period shall be proportionately
reduced.}
2. Where the standing in profession or calling of :
(a) Legal practitioners including solicitors and notary public,
(b) Medical Practitioners including Medical consultants and dentists,
(c) Technical and Professional consul tants i ncluding Archi tects, Engi neers, R .C.C.
consultants, Pl umbers, Tax C onsultants, C hartered Account ants, Act uaries and
Management Consultants,
(d) Chief Agents, Principal Agents, Special Agents, Insurance Agents, Surveyors or Loss
Assessors Licenced under the Insurance Act, 1938 (4 of 1938).
(e) Al l contractors,
(f) Commission Agents, Dalals and Brokers other than Estate workers,
1[(i) less than two years Nil
(ii) two years or more but less than five years Rs. 1000
(iii) five years or more but less than ten years Rs. 1500
(iv) ten years or more Rs. 2500]
3 (i) Members of Associations recognised under t he Forward C ontracts
(Regulation) Act, 1952 (74 of 1952)
Rs. 2500
(ii) Members of stock exchanges recognised under the Securities
Contracts (Regulation) Act, 1956 (42 of 1956)
Rs. 2500
(iii) Estate agents and brokers :
1 Clause (A), (B) and (C) of Sr. No. 2 and entries relating thereto substituted by clause (i) to (iv)
by Professional Tax (Am endment) Act, 1999 w.e.f. 1.5.99. Earlier to substitution clause (A),
(B) & (C) read as under :
(A) In a place having a population of less than 50,000 is :
(i) less than five years Nil
(ii) five years or more but less than ten years Rs. 200
(iii) ten years or more but less than fifteen years Rs. 400
(iv) fifteen years or more Rs. 600
(B) In a place having a population of 50,000 and above but less than 1,00,000 is :
(i) less than five years Nil
(ii) five years or more but less than ten years Rs. 600
(iii) ten years or more but less than fifteen years Rs. 800
(iv) fifteen years or more Rs. 1000
(C) In a place having a population of 1,00,000 or more is,
(i) less than five years Nil
(ii) five years or more but less than ten years Rs. 1000
(iii) ten years or more but less than fifteen years Rs. 1500
(iv) fifteen years or more Rs. 2500
X LAWS IN M.P.
(a) in a place having a population of less than 50,000 Rs. 1000
(b) in a place having a population of 50,000 but less than
1,00,000
Rs. 1500
(c) in a place having a population of 1,00,000 and above Rs. 2500
(iv) Whole time Directors (other than those nominated by Government)
of companies registered under t he C ompanies Act , 1956 (1 of
1956)
Rs. 2500
(v) Remisiers recognised by stock exchange Rs. 2500
(vi) All liquor licencees Rs. 2500
(vii) Employers of theaters as defined in the Madhya Pradesh Shops and
Establishments Act, 1958 (25 of 1958)
Rs. 2500
(viii) (a) Owners of oil pumps with service stations and where any such
oil pumps is leased, the lessee thereof
Rs. 2500
(b) Owners of oil pumps without service stations and where any
such pump is leased, the lessee thereof
Rs. 1500
(c) Owners of service stations and where any service station is
leased, the lessee thereof
Rs. 1500
(ix) Employers of residential hotels as defi ned in the Madhya Pradesh
Shops and Establishments Act, 1958 (25 of 1958)
(a) having less than twenty beds Rs. 1000
(b) having twenty beds or more but not more than fifty beds Rs. 1500
(c) having more than fifty beds Rs. 2500
(x) Companies registered under the Companies Act, 1956 (1 of 1956)
and engaged in any profession, trade or calling
Rs. 2500
(xi) Individuals or institutions conducting chit funds Rs. 2500
(xii) Banking C ompanies as defi ned i n the Banking Regulation Act,
1949 (10 of 1949)
Rs. 2500
(xiii) Co-operative Societies registered or deem ed to be registered under
the Madhya Pradesh Co-operative Societies Act, 1960 (17 of 1961)
(a) State l evel soci eties engaged i n any professi on, t rade or
calling
Rs. 1000
(b) District l evel soci eties engaged i n any professi on, t rade or
calling
Rs. 800
(c) Co-operative sugar factories and co-operative sugar mills Rs. 2500
(xiv) 1[Owners of video parlours or video libraries or both and where any
video parlour or video library or both are leased, the lessee thereof,
or owners of beaut y parl ours, cabl e operat ors, film distributors,
persons ow.ing/running STD/ISD booths other than those owned or
1 Subs. for the words ‘Owners of video parlours or video libraries or both and where any video
parlour or video library or both are leased, the lessee thereof’ by Professional Tax
(Amendment) Act, 1999 w.e.f. 1.5.99
PART - IV PROFESSIONAL TAX ACT, 1995 319
run by Governm ent or by phy sically handi capped persons, or
persons owing/running marriage halls] :
(a) in a place having a population of less than 50,000 Rs. 1000
(b) in a place having a popula tion of 50,000 and above but less
than 1,00,000
Rs. 1500
(c) in a place having a population of 1,00,000 and above Rs. 2500
(xv) Money lenders registered under t he M adhya Pradesh M oney
Lenders Act, 1934 (13 of 1934) :
(a) in a place having a population of less than 50,000 Rs. 1000
(b) in a place having a populati on of 50,000 and above but less
than 1,00,000
Rs. 1500
(c) in a place having a population of 1,00,000 and above Rs. 2500
4. Employers of est ablishments as defi ned i n t he M adhya Pradesh
Shops and Est ablishments Act, 1958 (25 of 1958) excluding those
specified elsewhere in the Schedule :
(i) Where there are not more than five employees Nil
(ii) Where more than five but not m ore than ten em ployees are
employed
Rs. 1000
(iii) Where more than ten but not more than fifteen employees are
employed
Rs. 1500
(iv) Where more than fifteen employees are employed Rs. 2500
5. 1[(i) Firms (whether registered or not under t he Indian Partnership
Act), excluding firms covered in any other entry of this Schedule;
(ii) Hindu Undivided Family;
which are engaged in any profession, trade or calling]:
(a) in a place having a population of less than 50,000 Rs. 1000
(b) in a place having a populati on of 50,000 and above but less
than 1,00,000
Rs. 1500
(c) in a place having a population of 1,00,000 and above Rs. 2500
6. Occupiers of factories as defined in the Factories Act, 1948 (63 of
1948) but excluding those covered by entry 7 :
(i) Where not more than fifteen workers are working Rs. 1500
(ii) Where more than fifteen workers are working Rs. 2500
27. Dealers l iable t o pay t ax under M adhya Pradesh Vani jyik Kar
Adhi i 1994 (N 5 f 1995) h i
1 Subs. for the words ‘Partners of firms regist ered under the Indian Partnership Act, 1932 (9 of
1932) which are engaged in any profession, trade or calling but excluding firms covered in any
other entry of this Schedule’ by Professional Tax (Amendment) Act, 1999 w.e.f. 1.5.99
2 Sr. No. 7 and entries relating thereto substituted by Professional Tax (Amendment) Act, 2001
w.e.f. 1.4.01. Earlier to substitution Sr. No. 7 read as under :
7. Dealers liable to pay tax under Madhya Pradesh Commercial Tax Act, 1994
(No. 5 of 1995) whose annual gross turnover is :
⇒
X LAWS IN M.P.
Adhiniyam, 1994 (No. 5 of 1995) whose gross turnover is :
(i) Less than Rs. 5,00,000 Nil
(ii) Exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 Rs. 1000
(iii) Exceeds Rs. 10,00,000 but does not exceed Rs. 50,00,000 Rs. 2000
(iv) Rs. 50,00,000 or more Rs. 2500
8. Holders of perm its for t ransport vehicles granted under the Motor
Vehicles Act, 1988 (59 of 1988) whi ch are used or adapt ed to be
used for hire or reward :
(i) in respect of each three wheeler passenger or goods vehicle Rs. 400*
(ii) in respect of each taxi, f our wheeler light passenger or goods
vehicle
Rs. 800*
(iii) in respect of each heavy passenger or goods vehicle Rs. 1000*
*Subject to the maximum of Rs. 2500
1[9. Such persons other than those m entioned in any of the preceding
entries, who are engaged i n any profession, trade, calling or
employment at such rate as the St ate Governm ent m ay, by
notification, specify]
Explanation - For the purposes of t his Schedul e popul ation m eans t he popul ation as
ascertained at the last preceding census of which the relevant figures have been published.
⇒
(i) Less than Rs. 5,00,000 Nil
(ii) Rs. 5,00,000 or more but less than Rs. 10,00,000 Rs. 500
(iii) Rs. 10,00,000 or more but less than Rs. 50,00,000 Rs. 1000
(iv) Rs. 50,00,000 or more Rs. 2500
1 Sr. No. 9 substituted by Professional Tax (Amendment) Act, 1999 w.e.f. 1.5.99. Earlier to
substitution Sr. No. 9 read as under :
“Such persons not covered by any of the preceding entries , as the State Government may, by
notification, specify”
Madhya Pradesh Professional Tax Rules, 1995
1Notification. No. A-5-6-95-ST-V(58) Dated 17th July 1995
In exercise of the powers conferred by Section 28 of the Madhya Pradesh Vritti Kar
Adhiniyam, 1995 (No. 16 of 1995), the State Government hereby makes the
following rules, namely :
Rule 1 : Short title
These rules may be called the Madhya Pradesh Vritti Kar Niyam, 1995.
Rule 2 : Definitions
In these rules, unless the context otherwise requires :
(a) Act means the Madhya Pradesh Vritti Kar Adhiniyam, 1995 (No. 16 of 1995);
(b) Form means a Form appended to these rules;
(c) Place of Work in relation to a person or employer means the place where such
person or employer ordinarily carries on his profession, trade, calling or
employment;
(d) Quarter means a period of three months commencing from 1st April, 1st July,
1st October and 1st January;
(e) Section means a Section of the Act;
(f) Treasury in respect of a person or an employer 2[whose principal place of work]
is situated within the jurisdiction of a Profession Tax Assessing Authority, means
the branch of a scheduled bank trans acting business of the Government of
Madhya Pradesh or any Government Treasury or sub-treasury as the case may be,
located within the jurisdiction of the said authority.
Rule 3 : Grant of certificate of registration
(1) (a) An application for obtaining a certificate of registration under sub-section (1)
of Section 8 shall be made in Form I.
3(b) Where an employer has more than one place of work within the State of
Madhya Pradesh, he shall make a single application in respect of all such places,
declaring therein one of such places as th e principal place of work and others as
additional places of work for the purpose of these rules and submit such application to
the Profession Tax Assessing Authority in w hose jurisdiction the said principal place
of work is situated.
(2) (a) An application for obtaining a certificate of registration under sub-section (2)
of Section 8 shall be made in Form 3.
1 Published in Madhya Pradesh Rajpatra dt. 17.7.95.
2 Subs. for the words ‘whose place of work’ by Noti. No. 12, dt. 27.3.96 w.e.f. 27.3.96.
3 Subs. by Noti. No. 12, dt. 27.3.96 w.e.f. 27.3.96. Prior to substitution clause (b) read as under :
‘An employer having places of work within the jurisdiction of more than one Profession Tax
Assessing Authority shall make an application for registration separately to each such authority
in respect of each such place of work within the jurisdiction of the said Authority.’
X LAWS IN M.P.
(b) Where a person has more than one place of work within the State of Madhya
Pradesh, he shall make a single application in respect of all such places, declaring
therein one of such places as the principa l place of work and others as additional
places of work for the purpose of these rules and subm it such application to the
Profession Tax Assessing Author ity in whose jurisdiction the said principal place of
work is Excerpt shown. Open the full act in Lexace.