PROFESSIONAL TAX

Professional Tax is implemented under the Finance Act 1977. It is a tax levied and collected with respect to earning or income from any profession, trade, calling or employment for each financial year in addition to any tax, rate, duty or fee that may be payable under any other law.

STEP – 1 :

It can be paid by two methods which are:

• Applicant visits Excise & Taxation Department for the payment of concerned tax. OR
• Deputed official inspects the offices in different areas of Islamabad and deliver notices to tax defaulters.

STEP – 2 :

Following documents are submitted by the applicant:

  1. Application to ETO on office Letter pad.
  2. Copy of CNIC of tax payer.
  3. National Tax Number (NTN)
  4. Proof of SECP Registration/Registration in Registrar Office/Any authorized Registration.
  5. Leasing Agreement of the Office.
  6. Monthly Salary Sheet of the employees / Staff.
  7. Income Tax (IT) and Sales Tax (ST) returns of current/previous year.
  8. Deposited Fee Challan.

STEP – 3 :

Tax amount should be deposited in State Bank of Pakistan (SBP), Islamabad / National Bank of Pakistan (NBP), E&TD branch, Islamabad in Account No: B01601. The rate of the professional tax is mentioned below:

Rate:

S No.
Categories Fee Amounts (Rs.)/annum
1
Private Companies 5,000/- to 10,000/-
2
Properitership or Individual 3,000/- to 5,000/-
3
Importer/Exporter or Sole Properitership 3,000/- to 7,000/-

STEP – 4 :

In return, Professional tax Certificate is issued, which is dually signed by concerned official and Excise and Taxation Officer.

STEP – 5:

The Professional tax Certificate is renewed in the month of July every year and procedure of the Certificate renewal is as under:

1. Application for Renewal on authentic letter pad.
2. Copy of last paid Certificate.
3. Paid Challan of the due tax amount.