Professional Tax

• Introduction to Professinal Tax
• Self Assesment
• Companies Registered under Companies Ordinance, 1984
• Factories as defined under the Factories Act,1932
• Commercial Establishments
• Importers and Exporters
• Government Contractors 
• Government Builders 
• Government Property Developers
• Property Dealers
• Motor Vehicle Dealers
• Motor Cycle Dealer
• Doctors
• Hakeems or Ayuervedics
• Auditing Firms
• Engineers 
• Lawyers
• Money Changers
• Recruiting Agents
• Carriage of Goods and Passengers
• Health Clubs

Introduction to Professional Tax

The Professional Tax is administered under the provisions of The Punjab Finance Act 1977 and the Punjab Professions and Trade Tax Rules 1977. This tax is levied and collected on/from the persons or class of persons engaged in a profession, trade, calling or employment in the Province of the Punjab and it shall come into force on and from the first day of July under section 1 (3) of the Punjab Finance Act, 1977.

Steps for in case of Computerize Approach to ETO Professional Tax

Steps for Self-Assessment

• Please click here for self assesment 
• Fill in the provided Form in the link for self-assesment
• Click Print Button to get deposit slip & pay tax eitheron E-Pay or any NBP/SBP branch

Enrollment/Manual of Professional Tax Manually

ETO Professional Tax issues Demand/Enrollment No. to the Applicant on same day by adopting following steps

Submit basic information regarding your business and date of its commencement OR Registration Date with any authority along with the followings:

• ETO Professional Tax will issue a Payment Challan (PFT-2) on 32-A accordingly
• Deposit Professional Tax in any branch of NBP/SBP in Punjab
• Provide a copy of Paid Challan to ETO Professional Tax

Clearance Certificate Of Professional Tax

• Application from proprietor in plain paper
• Copy of CNIC of the applicant
• Proof of payment of Professional Tax up-to-date

Modes of Professional Tax

Assessment Criteria of all the heads of Professional Tax are assessed under the following criteria:

Companies registered under Companies Ordinance, 1984 with paid up capital

Persons other than companies, owning factories as defined under the Factories Act, 1932

Persons other than companies owning commercial establishments having 10 or more employees 

Persons engaged in the import or export of goods who, during the preceding financial year, imported or exported goods of the value

Persons who are engaged in a profession, trade, calling or employment either wholly or partly within the Province of the Punjab, who were assessed to pay income tax during the preceding financial year PKR. 200/-
 
Contractors, builders and property developers. who during the preceding financial year supplied to the Federal or the Provincial Government or a company or a factory or a commercial establishment or an autonomous or a semi autonomous organization or any Local Authority; goods, commodities and services of the value

​Persons engaged in various professions and providing different services

Management and Tax Consultants Architects, Engineering, Technical and Scientific Consultants

Money changers

 Motor Cycle/Scooter dealers 

Motor Vehicle Dealers and Real Estate Agents

Recruiting Agents      

​Carriage of Goods and Passengers by Road     

Health Clubs, Gymnasiums & Others  

Taxing from a person engaged more than one profession

If a person is engaged in more than one profession, trade calling or employment he shall pay the tax only in respect of one such profession, trade, calling or employment for which rate of tax is the highest under section 3 (2) of Punjab Finance Act 1977. 

Procedure of Survey

Most of the survey was made by personal visits to the allotted circles by the Inspector, which is conventional but most authentic source of survey and still in use because of movability of the units time to time. But new ways were adopted during the last couple of years.

• Directory of Industrial Establishments Punjab
• Yellow Pages
• SECP List of registered companies
• List from Chamber of Commerce
• Lists from Educational Departments etc.
• Serving of Notices

Enlisted below are the 3 types of initial notices are served to assessees:

First Notice

Following information and documents are demanded from the assessee for the assessment of tax under section 3 of Punjab Finance Act 1977 amended in 1999 and 2000 within the mention period

• Date of opening of the office with documentary evidence
• Photo copy of incorporation certificate if it is an incorporated company
• Paid-up capital of the company with documentary evidence i.e. form "A" acknowledged by SECP
• Value of import/export during the years to be taxed with documentary evidence (P-Copy of Income Tax returns for the said years)
• Year wise value of work done/Services/Supplied goods to the Federal/Provincial/Semi Government department or a company or a Factory or a commercial establishment or an autonomous or semi autonomous or semi autonomous organization or any local authority, with documentary evidence
• Number of employees
• Ist and last income tax returns acknowledge by Income Tax Department
• Professional Tax receipts if paid any during last years

Second Notice

Reminder of the first notice, on the expiration of stipulated period.

Third Notice

Reminder of the above two notices and final opportunity is given to the assessee to be heard. Some Special Notices are also served

Final Call Notice 

Ex-Parte Decision, The section 4 (2) of Punjab Profession & Trade Tax Rules 1977 give the Assessing Authority District Excise & Taxation Officer ability to decide the matter exparte on maximum taxation with 100% penalty.

Demand Notice

Demand notice is issued against those assessees who are already assessed or decided exparte with the 32-A Challan form, within the period not less than 30 days after serving the notice under section 6 of the Punjab Professions & Trade Tax Rules 1977. If assessee does not make any action for the payment of assessed tax following procedure is adopted under Land Revenue Act, 1967, vide the Section 6 of Punjab Finance Act 1977. Notice before Arrest Warrants or Attachment Under section 81/82 of the Punjab Land Revenue Act, 1967.

Arrest Warrants  

Attachment orders Under Punjab Land Revenue Act, 1967

Appeal in Case of Objection

If assesse has any objection about the assessment, he has right to appeal before Director Excise & Taxation under section 4 (3) of Punjab Profession & Trade Tax Rules, 1977 within 30 days and the Appellate Authority can order to charge the whole tax or to refund.

Demand Register

All the assessed units are written in the Demand Register, in which all the paid amounts as well as arrears are maintained as record under section 11 of the Punjab Professions & Trade Tax Rules, 1977 in Form P.F.T-3.

Taxing Year

Taxing year is from 1st July to 30th June (Fiscal Year), under section 1 (3) of the Punjab Finance Act, 1977.

Payment Duration

Every person liable to pay the tax shall before the 31st day of August, in each calendar year, furnish to the District and Taxation Officer a statement giving his name, address, nature of his profession, trade calling or employment.

Crediting of Amount

Every person shall credit the amount of the tax in the nearest treasury in Form P.R.T-2 or send the same to District Excise and Taxation Officer by postal order by a cheque on the State Bank of Pakistan, National Bank of Pakistan or any other bank having clearing accounts with either of these banks.

Deleting of Demand

If any person liable to pay tax discontinuous the trade, profession, employment or calling on the basis of which he is liable to pay the tax such person shall within 30 days of his discontinuing such trade, profession, employment or calling notify the fact to the District Excise and Taxation Officer, under section 10 of the Punjab Professions & Trade Tax Rules, 1977.