Every assessee ‘registered’ under the Act shall submit to the assessing authority, a return In Form V every month showing the salaries and wages paid by him and the amount of tax deducted by him from the salaries and wages.
The return shall be accompanied by a treasury challan/DD/Cheque/e-payment in proof of payment of the full amount of tax due on or before 10th day of month succeeding the month for which the return to be filed by through online or manually before the concerned assessing authority.
Note : A Person has to pay the profession tax annually.

• Every person engaged in any profession, trade, calling or employment in the State and falling in any one or other of classes specified in the First Schedule to the Act is liable to tax at the rate specified in that Schedule against the class to which he belongs.
• Where a person is covered by more than one entry in that Schedule, the highest rate of tax specified against any of those entries shall be applicable in his case.
• The words ‘person’ includes a Hindu Undivided Family, firm, company, corporation or other corporate body, society, club or association engaged in profession, trade, calling or employment. A person who earns wages on a causal basis is excluded from the definition of ‘person’.
• Thus, not only the persons employed in a concern, but also the concern, if engaged in any profession, trade or calling is liable to pay tax. For example, a firm or a company doing business is liable to tax as a person engaged in trade. Each partner of a firm engaged in any profession, trade or calling is liable to tax under Entry 21. While the company registered under the Companies Act, 1956 and engaged in a profession, trade or calling is liable to tax under Entry 20, its directors (other than those nominated by the Government) are liable to tax under Entry 5.
• If a person has only one place of work, he is liable to pay tax at the place of his work. If he has more than one place of work, he is liable to pay tax at a place named by him as principal place of work. Place of work means the place where the person ordinarily carries on his profession, trade, calling or employment.
• A dealer’s liability to tax depends on his annual turnover of his business. If the dealer has more than one place of business, his annual turnover will be determined by the assessing authority under the A.P.VAT A Act, 2005 and having more than one place of business, must name the principal place of work, only the place declared as principal place of business under the A.P.VAT Act, 2005.
• Sec. 2(j) : Amendment 1996 : Extension counters and ATMs, of the banks are nothing but branches of a branch. They fall within purview of definition of “person” under Sec. 2(j) liable for levy of tax. State Bank of Hyderabad Vs Dy. Commercial Tax Officer, Hyderabad, 2008 (4) ALD 473 : 2008 (4) ALT 583 (DB).
• While the liability to pay tax is on a person who is employed, it is the duty of the employer to deduct the tax from the salary or wages of the employee and to make it over to the Commercial Taxes Department (hereafter called the Department) ‘. If the employer has more than one place of work, he shall pay tax on behalf of the employees at every place of work where the employees are working.
• An employee means a person employed on salary or wages. He may be an employee of the Central Government or any State Government to whom the salary is paid either from the Consolidated Fund of India or that of a State. He may be an employee of an undertaking owned or controlled by the Central Government or any State Government. He may be an employee of any other employer. The employer may have his head quarters in any other State. The criterion is the place of work in the State.
• An employer means the person or the officer who is responsible for disbursement of salary or wages. The head of the office or any establishment falls within the meaning of word ‘employer’. The manager or agent of the employer is also included in the definition.
• The liability of the employer to make over the tax to the Department depends on whether the employers is the Government or not. If the employer is other than Government, even though the employer has not deducted the tax from the salary or wages of an employee he is nevertheless liable to pay the tax on behalf of the employee. If the employer is government _ whether State or Central _ and if the employee has not deducted the tax from the salary or wages of the employee, the amount is liable to be recovered from the employee.
• If an employee is covered by one or more entries besides Entry 1 (relating to salary and wage earners) of the First Schedule and the rate of tax in any such other entry is more than the rate of tax under Entry 1, the employee should furnish a certificate in Form III stating the fact and undertaking to pay the tax himself. If a person is simultaneously engaged in employment under more than one employer, he shall furnish to every employer a certificate in Form IV stating the fact and undertaking to pay the tax himself. In those circumstances, the employer or the employers shall not deduct the tax from the salary or wages of the employees falling in either of the above cases and shall be liable to pay it to the Department on behalf of such employees. Such employees are liable to pay the taxes directly to the Department.

Persons whose salary or wages does not exceed rupees one thousand per month, persons in Professions whose annual income does not exceed Rs.12000/- and traders whose total turnover in any year does not exceed rupees one lakh are exempt from the levy of Profession tax.