Commissioner of Profession Tax, Maharashtra allows profession tax payers to correct their periodicity for filing returns for the financial year 2018-19; specifies procedure for correction
The Commissioner of Profession Tax, Maharashtra, has issued a trade circular dated December 3, 2018 allowing tax payers under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 (“Act”), to correct their periodicity for filing returns under the Act.
The Maharashtra State Tax on Professions, Trades, Callings and Employments Rules, 1975, under Rule 11(3) specifies the periodicity for filing Profession Tax Return. Employers whose tax liability exceed Rs. 50,000/- in the previous year are required to file return on a monthly basis and remaining tax payers must file returns on an annual basis. Newly registered tax payers must also file monthly returns for that year. For subsequent years their periodicity will depend on tax payment of the previous year.
Accordingly, for such tax payers the periodicity was determined on the basis of the data available with the department and the same was displayed on the department website. Subsequently, the department had received several representations from tax payers stating that the periodicity set was incorrectly. Accordingly, a utility was set up to allow the tax payers to alter their periodicity. However, incorrect changes in periodicity were made by several taxpayers and the department has received fresh requests for allowing taxpayers to change periodicity for a second time.
Now, the procedure for changing the periodicity for filing returns has been specified, as requested by the tax payers.
Tax payer intending to change periodicity for filing return must mail their requests to firstname.lastname@example.org. The mail requesting such change must be made on or beforeDecember 31, 2018.
- Tax payer who has set periodicity as yearly, but paid tax exceeding Rs. 50,000/- in the previous year can request to set periodicity as monthly.
- Tax payer who has set periodicity as monthly but has a tax liability less than Rs. 50,000/- in the previous year can request to set his periodicity as yearly.
- However, if such a tax payer has already set his periodicity as monthly previously and has filed even a single return for that periodicity, his periodicity cannot be changed to yearly even though his tax liability for the previous year was less than Rs. 50,000. He will have to continue filing on monthly basis for the financial year 2018-2019.
- For a newly registered tax payer his periodicity will be monthly and cannot be changed.
- Payment details of financial year 2017-18 may be attached to the email requesting change in periodicity.
The waiver in late fee as notified by the department in its notification dated October 19, 2018 will be applicable for the returns being filed for the months up to November 2018 and will be available till December 31, 2018.
The department has clarified that the provision for making changes in periodicity is the final opportunity for doing so and applicable only for the financial year 2018-19.
Any member of trade having any further confusion in this regard may approach the Commissioner of Profession Tax, Maharashtra State to seek clarification.