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Profession Tax Registration (PTRC and PTEC)

Profession tax is a state-level tax and is levied across trades and professions in the country. As soon as a business owner hires new staff, it is the responsibility of the owner to deduct and pay this tax to the relevant government department. This tax is also applicable to persons who are not salaried employees but have a professional income of their own such as doctors, lawyers, and chartered accountants. This tax is based on the gross income of an individual and is calculated slab-wise with a capping of Rs. 200 per month. The states in which this tax is levied are Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, and Madhya Pradesh.

We are covering Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975

PTEC stands for Professional Tax Enrolment Certificate and PTRC stands for Professional Tax Registration Certificate. Usually these Registration are required to conduct business in Maharashtra and in many other States. PTEC allows to pay professional tax of a business entity and also of the professional or owner of the business. In other words PTEC allows the company to pay the companies and their director’s professional tax, also in case of individual like professionals and sole proprietor (provided he does not have any employees) all have to register under PTEC. On the other hand PTRC allows the employer to deduct and deposit professional tax from the salary of its employees and deposit it to government. Both PTEC and PTRC are required by a regular company to pay its own professional tax, as well as the professional tax for all its employees as is applicable. But, in case the Company and LLP does not have any payable employee then it will only require to pay PTEC and not PTRC and pay for Directors and Partners.

We at S.V.Bhat & Co help the entities to obtain new registration, amendment of existing registrations, filing of monthly and annual returns and payment of timely PT.

Important points to note

  • Applicable for PTRC Registration if employee salary > Rs. 7500 / Rs.10000 PM
  • Profession tax calculation basis is salary or wages earned per month by the employees
  • Lum Sum PT Tax can be of Rs. 2500/- in Maharashtra
  • PT in Maharashtra to be paid monthly/annually
  • Apply PT Registration with in 30 days from Applicability
  • On Late Payment of Professional Tax simple interest rate 1.25%PM