Change in Profession Tax Rates in A.P.

Please note a change in Profession Tax Rates in Andhra Pradesh vide G.o.Ms.No. 82 dated 04-02-2013 wherein the First Schedule has been replaced with an amended one– copy of notification attached for reference.

The major changes vs a vis the old schedule are

·         No Profession Tax on salaries less than 15,000/- (earlier applicable from Salary of Rs.5,000/- onwards).  There are only two taxable slabs salaries between 15,001/- to 20,000/- PT Rs.150/- PM and salaries above Rs.20,000/- PT Rs.200/- PM.

·         Companies not being registered under APVAT Act and having Turnover of less than
Rs.0.00 Lakhs do not attract any PT.  (Earlier all Companies were taxed at Rs.2,500/-P.A.)

·         Directors drawing remuneration from the Company(other than those nominated by the Government) are only liable to pay PT of Rs.2,500/- P.A.  (earlier all directors (other than those nominated by the Government) were liable to pay PT of Rs. 2,500/- P.A.

·         A new category of exempted persons – mostly labour oriented works is added at Sl.No.39

·         A new Category of taxable persons  - Persons, other than those mentioned in any of the preceding entries, who are engaged in any profession, trade or calling or employment with annual income of more than Rs 1,80,000/- but excluding those who are exempted under Section 31 of the Act and Entry No. 39 above, is added at Sl. No. 40 taxing them @ 2,500/- P.A.

By Praveen Boda