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Chartered accountants, lawyers and other professionals may have to shell out more money as State Governments are contemplating raising the incidence of professional tax.
The issue of raising the professional tax, currently capped at `2,500 per annum, will come up for discussion at the meeting of the Empowered committee of State Finance Ministers on Goods and Services Tax (GST) to be held in Bhopal on Monday.
"As per the current provisions, States have the power to revisit the maximum limit of `2,500 payable as professional tax...We will obviously look at increasing it, and take the States' views on the issue," Bihar Deputy Chief Minister Sushil Kumar Modi, who heads the panel on GST, told the news agency.
Besides, he added, "we will also discuss the concept paper prepared by the (Union) Finance Ministry on negative list of services."
Professional tax, according to KPMG Executive Director Pratik Jain, "is a State-level duty payable by employers (both public and private), who deduct it from the salaries of employees on a monthly basis."
Jain said that although the professional tax does not have significant financial implications, "companies want to avoid monthly compliance as it is cumbersome and would like to see it merged in GST."
The Empowered Committee meeting, according to sources, will also deliberate on the issue of CST (Central Sales Tax) compensation.
The issue of raising the professional tax, currently capped at `2,500 per annum, will come up for discussion at the meeting of the Empowered committee of State Finance Ministers on Goods and Services Tax (GST) to be held in Bhopal on Monday.
"As per the current provisions, States have the power to revisit the maximum limit of `2,500 payable as professional tax...We will obviously look at increasing it, and take the States' views on the issue," Bihar Deputy Chief Minister Sushil Kumar Modi, who heads the panel on GST, told the news agency.
Besides, he added, "we will also discuss the concept paper prepared by the (Union) Finance Ministry on negative list of services."
Professional tax, according to KPMG Executive Director Pratik Jain, "is a State-level duty payable by employers (both public and private), who deduct it from the salaries of employees on a monthly basis."
Jain said that although the professional tax does not have significant financial implications, "companies want to avoid monthly compliance as it is cumbersome and would like to see it merged in GST."
The Empowered Committee meeting, according to sources, will also deliberate on the issue of CST (Central Sales Tax) compensation.
