The Commercial Taxes Department is the primary AP PT Payment-collecting agency for professionals in Andhra Pradesh. The Department is currently singling out and connecting with its professional taxpayers to emphasize the need to pay the AP PT Payments soon as possible.
The professional tax levy is fair and varies annually. Also, professional taxpayers in Andhra Pradesh benefit from a total deduction of AP PT Payments paid by individuals or organizations against income tax liabilities without additional taxes.
The Constitution authorizes the imposition of an APPT Payment with a full slab of Rs.2500/- per annum and a minimum slab of Rs.110/- per annum. It must complete all formalities concerning its income tax obligation by March 31 each year.
In this post, we discuss the APPT Payment in Andhra Pradesh and the Form VI, the paying-in slip for making payment to the Collecting Agents under the preamble of the APPT Payment by Professions, Trades, Callings, and Employments Act, 1987.
This article contains:
- APPT Payment—Professional Tax Compliance in India
- AP PT Payment Compliance
- The Andhra Pradesh State Tax on Professions, Trades, Callings and Employment Act, 1987 ("AP PT Act")
- APPT Payment—Who is a Collecting Agent?
- Rules Relating to Form VI Paying In Slip For Payment To Collecting Agents APPT Act
- What Should Form VI Contain?
- What is AP PT Payment?
- AP PT Payment Slab Rate
- AP PT Payment—Penalties and Deadlines
- How Deskera Can Assist You?
- Key Takeaways
APPT Payment—Professional Tax Compliance in India
As per the Indian Constitution, Article 276, any Indian citizen receiving a salary or practicing all professionals working and earning a salary in India must pay professional tax to their State Government. Each state in India has distinctive professional tax compliance, and Indian salaried employees must pay professional tax in the location where there reside and earn. Check the list of Indian states that charge professional tax below:
AP PT Payment Compliance
The enactment of the Andhra Pradesh State Tax on Professionals, Trades, Callings, and Employment Act, 1987 ("AP PT Act") was on June 15, 1987, intending to tax professions, trades, callings, and employments. It covers all professionals who are salaried employees in Andhra Pradesh.
Professional tax is a state-imposed tax on income earned from a profession or employment that the state's Commercial Tax Department collects. In the event of employment, the employer must deduct the tax from the salary and deposit it with the State Government and provide a return to the tax department in the authorized form and with confirmation of tax payment within a given time period.
The other individual professionals must pay their taxes to the government directly as stipulated by the Professional tax laws. The amount of professional tax deducted/payable by an employee/professional varies by state, depending on the slabs established by the individual states under the Professions, Trades, Callings, and Employments Act and Rules.
The Andhra Pradesh State Tax on Professions, Trades, Callings and Employment Act, 1987 ("AP PT Act")
The Governor of Andhra Pradesh directives as per the AP PT Act or the Profession, Trades, Callings, and Employment Act, 1987 (Andhra Pradesh Act No.22 of 1987) Section 30, confers that:
- The short title of the rules governing the AP PT Payment is the Andhra Pradesh Tax on Professions, Trades, Callings, and Employments Rules, 1987
- The rules pertaining to the Act are in effect from June 15, 1987
The Act requires the persons residing and earning a salary in Andhra Pradesh to register for AP PT Payment purposes under the purview of the Act as follows:
- You must use Form I to apply for a certificate of registration under Section 6 sub-section (1)
- An applicant with places of employment within the jurisdiction of several assessing authorities must submit a separate application for registration for each such authority concerning the work location without the authority of the said jurisdiction
You will receive approval and receive the certificate of registration for AP PT Payment purposes if
- The assessing authority shall grant the applicant a certificate of registration in Form 1A after receiving an application for a certificate of registration for AP PT Payment purposes if he is satisfied that the application is in order and that the particulars supplied therein are correct and complete
- Suppose the assessing authority determines that the application is not in order, that all of the information required for the issuance of the certificate of registration for AP PT Payment purposes has not been provided, or that the information provided is incorrect and incomplete. In that case, he will instruct the applicant to file a revised application or provide any additional information deemed necessary
- The assessing authority shall give a certificate of registration for AP PT Payment purposes in Form 1A after evaluating the amended application and any additional information. After making any inquiries, he deems necessary
APPT Payment—Who is a Collecting Agent?
A collecting agent is the one who collects the APPT Payment amount from the taxpayers, and he credits the same to the treasury via a challan in quadruplicate on or before the 10th of each month.
He will remit all the APPT payment amounts and the interest and penalty he collected during the previous month. He works as per the directive of the APPT Act or the Profession, Trades, Callings and Employment Act, 1987 Sub-rule (2) that he receives via a paying-in-slip duly filled in duplicate from the taxpayers with the specified timeframe.
After marking it as a duplicate to the concerned authority, the collecting agent forwards the challan copy. The Commissioner specifies the concerned authority to the collecting agent. The Collecting agent also submits the collection statement via Form VII after verifying and signing the same.
Rules Relating to Form VI Paying In Slip For Payment To Collecting Agents APPT Act
Rule 14 subsection 2 of the APPT Act states that:
When the payment of tax, interest, and penalty (if any) is due to a Collecting Agent appointed under Section 14, must pay the APPT Payment within the timeframe specified on a paying-in-slip duly filled in Form VI in duplicate.
What Should Form VI Contain?
Form VI paying in slip for payment to collecting agents under the purview of the APPT Act must contain the following:
- The name of the collecting agent to whom the AP PT payment and the interest, penalty, and composition amount are remitted
- The name of the taxpayer who tenders the AP PT payment with the interest, penalty, and composition amount due
- Form VI must contain a statement that indicates the APPT Payment, Penalty, Interest, and composition amount due in detail, along with the total amount remitted
- The Form VI paying in slip for payment to collecting agents under the APPT Act must include the enrollment number
- The total amount remitted should be written in words
- Form VI must include the date and signature of the taxpayer
- The form VI up to this part needs to be filled by the taxpayer
The Following details on Form VI need to be filled in by the Collecting Agent:
- The collecting agent must specify the APPT Payment received first in figures and then in words.
- The collecting agent must also enter the date of receipt of form VI
- The Form VI must have the name of the receiving officer and slip number
We have included Form VI paying in slip for payment of collecting Agents as per the AP PT Act below:
APPT Payment—FORM VI[See Rule 14(2)]
ORIGINAL (For the Payer)
Paying in slip for making Payment to the Collecting Agents The A.P.Tax on Professions, Trades, Callings and Employments Act, 1987
Paying in slip for tax, interest, penalty and composition money paid to _______________________ _________________________________________________(Name of The Collecting Agent) for the period from___________________________________to___________________________________
By whom tendered.
Payment on Account of
Amount (in figures)
Name and address of the person in whose behalf the money is paid
(d) Composition Money
Enrolment Certificate No.:
Rupees (in words) __________________________________________________________________
Date : (Signature) _____________________________________________________________________________________________________________
(To be used by the Collecting Agent)
Received the payment of Rupees ___________________ (in figures) Rupees __________________
Date: Slip No.
What is AP PT Payment?
Professional tax, like income tax, is a mandated payment to the Indian Government in India and one of the government's most important sources of income. Salaried persons and professionals such as Engineers, Physicians, chartered accountants, and others are subject to the tax.
All employers are liable to make APPT payments to the state government. Article 276 of the Indian Constitution clearly states that professional taxes apply and that the employer is responsible for paying the tax to the state government. The highest amount of professional tax paid in a year is Rs.2,500.
The APPT Payment slabs in Andhra Pradesh are updated every year. AP PT Payment amountis withheld from an employee's monthly pay and paid to the state of Andhra Pradesh depending on the slab rates. The APPT Paymentamount is deducted at the time of payment and is determined by the individual's income. Scroll down to know the slab rates for AP PT Payment.
AP PT Payment Slab Rate
The professional tax rate varies from state to state because it is a state tax levy. Some states tax it as a percentage of income, while others charge it as a fixed sum depending on income slabs. The following are the AP PT Payment Slab Rates:
Income Per Month In Andhra Pradesh
Professional Tax Amount
Above ₹15,001 but below ₹.20000
₹150 per month
₹20,001 or more
₹.200 per month
AP PT Payment—Penalties and Deadlines
The AP professional tax payment deadline varies depending on the date the concerned authority grants the certificate of enrollment for AP PT Payment purposes. If you receive your certificate of enrollment on or before May 31 of the year, your deadline for APPT payment is June 30.
The deadline for APPT payment is June 30 for those who pay within a month of the day of enrolment. A person who misses the deadline and makes the APPT payments late will have to pay the penalty, which will not be less than 25% but not more than 50% of the APPT payment due.
In Andhra Pradesh, the Commissioner shall publish a public notice in local newspapers with wide circulation in April each year, directing all persons liable to pay tax under the Act to register or enroll, as the case may be (unless they are already registered or enrolled), and to file returns and pay the tax in accordance with the Andhra Pradesh State Tax on Professions, Trades, Callings and Employment Act, 1987 ("AP PT Act") forAPPT payment purposes.
To avoid penalties, it is advisable to make your APPT payments within the stipulated time. You can do the necessary APPT payment, interest, fine, and composite money to the collecting agents Via Form V! Paying in slip for payment to collecting agents as per APPT Act.
How Deskera Can Assist You?
As a business, you must be diligent with the employee payroll system. Deskera People allows you to conveniently manage payroll, leave, attendance, and other expenses. Generating payslips for your employees is now easy as the platform also digitizes and automates HR processes.
- All professionals who are residing and earning a salary in Andhra Pradesh must make APPT payments in Andra Pradesh
- The Commercial Taxes Department is the primary collection agency for AP PT payments in Andhra Pradesh
- The Andhra Pradesh State Tax on Professions, Trades, Callings and Employment Act, 1987 ("AP PT Act") governs APPT payments in Andhra Pradesh
- Taxpayers submit Form VI paying in slip for payment to collecting agents along with the APPT payments to collecting agents
- The yearly APPT payment ceiling shall not exceed ₹ 2,500 in Andhra Pradesh
- As per the Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987,) physically handicapped individuals with 40% disability of any kind, commercial establishments with an annual turnover of ₹ 10 lakhs, and Public telephone operators are exempt from APPT payment in Andhra Pradesh