Professional Tax Registration
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Professional Tax Registration
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Professional Tax Registration
Professional Tax Registration is the mandatory process of registering a business, profession, employment or trade for the purpose of paying professional tax. Professional Tax is a direct tax imposed by state government or union territory government in India, which is levied on all individuals who earn income from their business or profession.
For salaried and wage earners, the professional tax is deducted from their salary / wages by their employer and deposited to the state government. On the other hand, self-employed individuals, companies etc are responsible for paying the tax themselves. The calculation and amount of professional tax collected may and amount of professional tax collected may vary from state to state, but it has a maximum limit of Rs. 2500 per year.
Having a Professional Tax Registration certificate demonstrates that a business or individual has fulfilled its / their tax obligations and is in good standing with the government. It is important to keep the certificate updated and displayed in a prominent location to remain compliant with local tax laws.
Levy of Professional Tax, being a state subject, depends on state to state. Here is the list of states in which Professional Tax is applicable and not-applicable.
|
Applicable |
Not-applicable |
|
Andhra Pradesh Assam Bihar Gujarat Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Pondicherry Punjab Sikkim Tamil Nadu Telangana Tripura West Bengal |
Andaman & Nicobar Islands Arunachal Pradesh Chandigarh Chhattisgarh Dadra and Nagar Haveli Daman and Diu Delhi Goa Haryana Himachal Pradesh Jammu and Kashmir Ladakh Lakshadweep Rajasthan Uttar Pradesh Uttarakhand |
How much does it cost for Professional Tax Registration?
Our Packages
Professional Tax Registration
Professional Tax PTEC & PTRC Registration For Mandatory State
- Profession Tax PTEC and PTRC Registration
- Get PTEC and PTRC compliant
- Goverment Fee Included
- Preparation & verification of application and documents
- Dedicated expert support throughout registration process
- Detailed proposal will be sent by email
- Price: ₹5,499/- (inclusive of GST)
Difference between PTEC and PTRC Registration
Professional Tax Registration in Maharashtra involves obtaining both the Professional Tax Enrolment Certificate (PTEC) and the Professional Tax Registration Certificate (PTRC). These certificates are required for businesses to operate legally and pay professional tax in the state.
The PTEC allows a business to pay professional tax of the business, including professionals and sole proprietors. On the other hand, the PTRC allows the employer to deduct and deposit professional tax from salary of its employees and remit it to the government.
A regular company is required to have both PTEC and PTRC to pay its own professional tax and that of its employees, but if the company or Limited Liability Partnership (LLP) does not have any payable employees, only PTEC is required.
Who should register for PT?
Professional Tax being a state government matter. Criteria of PT Registration differs from state to state.
However, if we look at the Professional Tax applicability in the state of Maharashtra, all the employees whose monthly salary is above Rs. 7500 are liable to pay Professional Tax. This means that all the businesses that are liable to deduct Professional Tax of any employee whose monthly salary is above Rs. 7500 have to get PTRC Registration.
At the same time, all the businesses, whether it is Proprietorship, Partnership, Private Limited Company, LLP or OPC, have to get PTEC registration for themselves.
How many employees are required for PT Registration in Maharashtra?
Every individual with an income is liable to pay Professional Tax. Accordingly there is no specific number of employees required to pay Professional Tax. The employer is liable to deduct Professional Tax of all the employees.
Professional Tax Rates in Maharashtra
Professional Tax rates in the state of Maharashtra for the employees are:
| Monthly Gross Salary | Amount payable as Professional Tax |
| Upto Rs. 7500 | Nil |
| Rs. 7501 to Rs. 10000 | Rs. 175 per month |
| Rs. 10001 and above | Rs. 200 per month except for the month of February. Rs. 300 for the month of February |
Professional Tax rate for businesses is Rs. 2500 per year.
Who is liable to pay Professional Tax in Maharashtra?
As owner of the company, it falls upon the business to withhold Professional Tax from employees’ salaries, and remit the collected funds as Professional Tax payment. The employer is also required to furnish a return, in required format, within the designated timeframe. The return must accompany proof of tax payment.
Documents required for Professional Tax Registration
- Memorandum and Articles of Association of company
- Certificate of Incorporation of Company / LLP
- PAN Card of Company / LLP / Partnership / Proprietorship
- Address and Identity proof of Proprietor / Partners / Directors
- Passport size photos of Proprietor / Partners / Directors
FAQs on Professional Tax Registration
Any person who is engaged in any trade, calling or profession is liable to pay Profession Tax in Maharashtra. For this purpose, a person means an Individual, HUF, Firm, Company, Society, Club or Association.
There are two types of profession tax payers:
- Profession Tax Enrolment Certificate: Any person who is engaged in any trade, calling or profession has to obtain Profession Tax Enrolment Certificate (PTEC).
- Professional Tax Registration Certificate: Every employer who has employed even one employee and whose salary is above the prescribed limit for deducting Profession Tax has to obtain Professional Tax Registration Certificate (PTRC).
When an employer or a person liable to register fails to apply for PT Registration, the prescribed authority may levy a penalty of rupees five for each day of delay in case of employer and rupees two per day of delay in case of person.
Profession Tax is a state subject and the levy of Profession Tax has to be decided by the state. Therefore Profession Tax differs in every state. However, the maximum profession tax levied by the state cannot exceed Rs. 2500 per year.
Profession tax is not imposed in all the states. There are a few states in India, which does not levy profession tax. The list is given hereinabove.
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