Should Professional Tax Be Paid When Company Revenue Is Zero | Vkeel - Free Legal Advice

Karthik Subramaniam

Chennai

We incorporated our Private limited company in Aug 2020 and also registered it for professional tax and paid a tax of Rs 2500 after registration. The company has only two directors as employees and so far, they do not receive any salary. The company has done zero business till now and so the revenue is also zero. We received a notification from Chennai Corporation to pay tax arrears of Rs 7500 for ( Rs 2500 for second quarter 2020-2021, Rs 2500 for first quarter 2021-22 and Rs 2500 for second quarter 2021-22 ). Is it compulsory to pay this tax when the directors receive no salary and company has zero revenue. How can we get exempted from this tax and get back the Rs 2500 paid as tax for the first quarter 2020-21, thanks!

Expert's Answers(4)

Advocate Kishan Dutt Kalaskar
Bengaluru, Karnataka

184 Client Ratings

Dear Sir, Professional Tax is to be paid irrespective of company is in profits or losses. Please give me rank after viewing my details. Please call me for further assistance.

March 18, 2022
Advocate Anik
Bengaluru, Karnataka

65 Client Ratings

Dear client, The Income Tax Return is filled to show the Income-tax department that you fall below the taxable income. Eventually, you don't have to pay the tax. there are Procedures to quash the notification. Please contact for more details Thank you.

March 14, 2022
Advocate Sanjeev Jain
Muzaffarnagar, Uttar Pradesh

8 Client Ratings

Dear Client you should contact local sale and incometax lawyer For further assistance please contact me Thank you

March 14, 2022
V.GIRI SHANKAR
Chennai, Tamil Nadu

1 Client Ratings

Sir you need not pay professional tax if your salary is within 3,500/- per month. However since you have incurred loss you can file your transaction reports to the the Chennai Corporation along with the report of your Auditor that should do...

March 13, 2022