The Bihar Government has issued the Professional Tax (Amendment) Rules, 2019 (“Amendment Rules”) further amending the Bihar Professional Tax Rules, 2011; effective 11^th July, 2019.

The Amendment Rules bring in significant changes in the procedure of registration and enrolment under the Bihar Professional Tax Rules, 2011 (“Principal Rules”).

• The Amendment has brought in significant changes in the process of registration. The details of the same are provided below:

1. The Amendment does away with the requirement of declaring the Tax Deduction and Collection Account Number at the time of obtaining registration. Employers will now be required to declare their Permanent Account Number (“PAN”) and any other information as required in FORM PT-I. The PAN will be validated online in the Department’s website from the database of the CBDT.
2. Earlier employers were required to verify both the mobile number and the email address by receiving only one one-time password. Post the amendment, the mobile number and the email address will be verified through separate one-time passwords sent to both the mobile number and email address.
3. The submission process has undergone a slight change post this amendment. After successful verification of PAN, mobile number and email id, the applicant will have to electronically submit an application in Form PT-I in the Department’s website along with other required documents. The temporary reference number has now been done away with. On successful submission, an acknowledgement will be issued electronically to the applicant.
4. The application submitted, will be forwarded to the Tax Assessing Authority (“TAA”) of the concerned circle instead of the Incharge as required prior to this amendment.
5. The TAA will within a period of one day of submission of the application approve the grant of registration in Form PT-II. If the TAA fails to grant or reject the application within one working day from the date of submission, then the application will be deemed to have been approved and granted. A certificate of Registration will be made available in Department’s official website.
6. The Certificate granted in both the abovementioned circumstances will bear the registration number allotted to the employer and that registration number will be the ‘Tax Deduction and Collection Account Number,’ (“TDAN”) allotted to the employer under the Income Tax Act, 1961, prefixed by the digits “10” and suffixed by the letter ‘R’. The suffix “R” was not there prior to this amendment.  In case, the employer has not been allotted a TDAN, then the registration number will be his PAN prefixed by the digits ”10″ and suffixed by the letter ‘R’.
7. The certificate of registration shall then be digitally signed and made available on the official website of the Commercial Taxes Department.
8. The requirement of getting the application signed by the person Incharge of the management in the state of Bihar, in case the person responsible for paying any salary or wages to an assessee under the Act is resident outside the State of Bihar is done away with through this Amendment.

• The procedure of enrolment has also changed significantly.

1. Post this amendment, the Enrolment process under the Bihar Tax on Professions, Trades, Callings and Employment Act has also completely become online. Therefore, every assessee who is paying their tax on their own, will have to file Form PT-IA online through the Department’s website.
2. Also, every person who is liable to enrol himself, will now have to declare his Permanent Account Number (“PAN”) instead of his Tax Deduction Account Number and also any other information that is required in the revised Form PT-I A on the official website of the Department. The PAN will be validated online in the Department’s website from the database of the CBDT.
3. The mobile number and email id will be verified through a one-time password sent to the applicant’s declared mobile number and email id respectively.
4. After successful verification of PAN, mobile number and email id, the applicant will have to electronically submit an application in Form PT-IA in the Department’s website along with other required documents. Post which, an acknowledgement will be issued electronically to the applicant. The application will then be forwarded to the TAA of the concerned circle.
5. The TAA will within a period of one day of submission of the application approve the grant of enrolment in Form PT-IIA. If the TAA fails to grant or reject the application within one working day from the date of submission, then the application will be deemed to have been approved and granted. A certificate of Enrolment will be made available in Department’s official website
6. The Certificate granted in both the abovementioned circumstances will bear the Enrolment number allotted to the employer and that enrolment number will be the ‘Tax Deduction and Collection Account Number,’ (“TDAN”) allotted to the employer under the Income Tax Act, 1961, prefixed by the digits “10” and suffixed by the letter ‘E’.
7. In case, the employer has not been allotted a TDAN, then the enrolment number will be his PAN prefixed by the digits ”10″ and suffixed by the letter ‘E’

• In addition to the procedural change, there has been a change in Forms PT-I and PT-II.

Form PT-I: Application for registration under Section 5 of the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011

Form PT-II: Certificate of registration under Section 5 of the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011

Source: Bihar Government

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