Bihar Professional Tax

Bihar Professional Tax is a tax levied by the government of Bihar on individuals engaged in businesses and professions. This Tax applies to all persons engaged in any profession, trade, calling, or employment in Bihar. The amount of professional Tax varies depending on the nature of the profession and the amount of income earned. The Tax is applicable on a sliding scale, ranging from Rs. 2500 to Rs. 1,000 per month. The state government collects the Tax, and the amount collected is used for civic development and the welfare of the people of Bihar. Professional Tax is an important source of revenue for the state government and is used for various developmental activities.

Bihar Professional Tax Act, 2011

Professional tax dues are collected from professionals within the state by the Commercial Taxes Department, which is regulated by the Bihar Government. In accordance with the Bihar Professional Tax Act, 2011, individuals who engage in business or profession are subject to Profession Taxes of Rs.2500 (maximum) and Rs.1000 (minimum) per year.

Bihar Professional Tax Provisions for Filing Annual Return

In order to comply with the Professional Tax Act, all individuals must submit a monthly return (Form VII) to the assessing authority detailing the salaries paid and the amount of Tax deducted.

The return can be made by a treasury challan or any authorized bank or DD/ Cheque/ e-payment on the total amount of Tax on or before the end of November every year. The Department of Commercial Tax requires that a return be filed for the same, which may be done via its official website.

Registration and Applicability

It is necessary for an individual to register with a Bihar Professional Tax registration certificate and obtain a Bihar Professional Tax registration certificate if the employer is a corporation, partnership firm, sole proprietorship, etc. In the case of employees, an employer is considered responsible for deducting and paying professional Tax to the State Government under the specified law. Those who seek to establish freelancing businesses without employees are also required to register under the laws of their respective states.

Documents Required on Bihar Professional Tax

• Application form
• Two passport-size photographs
• Bank account details (copy of passbook/statement of the bank account)
• Copy of PAN card / TAN card of Proprietor/ Partners/ Karta of HUF / employer
• Identity proof of Applicant (copy of voter Identity card/Aadhar card/ driving license/ Passport)
• Address proof of Applicant (copy of electricity bill/telephone bill/driving license/passport)

Bihar Professional Tax Online/Property Tax Registration Procedure:

• Visit the official website of the Commercial tax department of the Bihar government.
• Click on “e-Registration” under the e-Services tab.
• Select “professional category tax”.
• Fill in the online registration form and upload the required documents.
• Click “submit”, and an acknowledgment receipt will be generated.
• Print the receipt for future reference.
• Wait for approval from the concerned office, which will be intimated through SMS and e-mail.

Track Registration Status

The registration status can be checked by selecting the registration type and entering the acknowledgment or application number.

Bihar Professional Tax Application Fee

Bihar Professional Tax registration does not require any application fee, processing fee, or security deposit from the Bihar Government.

Processing Time

After verifying the application, the concerned individual will provide a certified copy of the Professional Tax registration within fifteen days of receiving the application.

Bihar Professional Tax Concerned Authority

Deputy Commissioners, Assistant Commissioners, and Commercial Tax Officers are designated as the authorities responsible for issuing copies of certified professional tax returns.

Penalty on Failure to File Return

Taxpayers who fail to pay the required amount of Tax within the specified time limit may be subject to a penalty of two percent of the tax amount for each month in default.

What Is Value-Added Tax? 

Value-added Tax (VAT) is a tax levied on the value added to a product or service at each stage of production or distribution. The Tax is ultimately borne by the end consumer.

What Are the VAT Rates for Goods or Services in Bihar? 

The VAT rates for goods or services in Bihar vary depending on the item or service. The rates range from 0% to 14.5%.

Who Should Pay VAT in Bihar? 

Businesses engaged in the sale of goods or services in Bihar are required to pay VAT. The Tax is applicable to both registered and unregistered businesses.

How to Register for VAT in Bihar Online?

 To register for VAT in Bihar, you can visit the Bihar Commercial Taxes Department website and follow the registration process.

How to Pay VAT Registration Fee in Bihar Online?

 The VAT registration fee in Bihar can be paid online through the Bihar Commercial Taxes Department website.

How Is VAT Different From GST in Bihar?

 GST is a unified tax system that replaces all other indirect taxes, including VAT. The GST rates are uniform throughout the country, while the VAT rates vary from state to state. Bihar has also implemented the GST regime.