Professional Tax Registration in India

INTRODUCTION

Professional Tax is Tax Levied by the State Government on every professional and traders in India. Every person or traders whether persuied GST number or not is complied to issued PTEC Number & pay Professional Tax .Professional tax is just like Income Tax except for the fact that Income Tax is collected by the Central Government and Professional Tax is collected by the State Government.Each professional, the Directors of Company, Designated Partners of the LLP or any other employer is under obligation to seek registration as mentioned above and to ensure that professional tax is deducted from the salary of employees. The deducted professional tax from the employees must be deposited in the appropriate office designated by the state government, and a return of professional tax must be filed specifying the payment of professional tax. Every employer is under an obligation to deduct and pay tax on behalf of employees, for this purpose the employer should obtain the registration certificate from the departmental of professional tax within 30 days from the date of his liability.

APPLICABILITY OF PROFESSIONAL TAX

Directors & Partners
Company/ LLP/Firm

All types of entities such as Limited Liability Partnership (LLP), Private Limited, Public Limited & Directors / Partnersare required to obtain registration under PT Act, within 30 days of their appointment.

Individual Professionals

Legal Practitioners includingDoctors,Designer,Chartered Accountant, Company Secretaries Solicitors, Medical Representatives including Medical Consultants and Dentists, , Management Consultants, Architectures, Engineers, Tax Consultants, Insurance Agents, and Surveyors all kind of Contractors etc.

As an Employer

The professional tax on salaried individuals in applicable state is to be collected by the employer after making the appropriate deduction from the salary of the employees and to deposit with the professional tax department. The employer needs to obtain registration with professional tax department within 30 days of its applicability

Comparison between PTRC and PTEC Registration for Professional Tax in India:

PTRC Registration PTEC Registration
Stands for Professional Tax Registration Certificate Professional Tax Enrollment Certificate
Required for Professional Tax in India Professional Tax in India
Description A certificate obtained by an employer to deduct and deposit professional tax from employees’ salary. A certificate obtained by an employer to pay their own professional tax, as well as by professional practitioners such as CAs, Doctors, Advocates, Architects, etc. to pay their own professional tax.
Purpose To deduct and deposit professional tax from employees’ salary. For professionals to pay their own professional tax
Process for registration Differs as per state. However, commonly a form must be uploaded electronically on to the website for registration.
Common documents required for registration
  • Self Attested Copy Of PAN Card
  • Proof of the Constitution of Business
  • Blank Cancelled Cheque
  • Shop and Establishment Certificate
Additional documents required for registration PAN and PTEC Details of all the Partners or Directors Details of the number of employees, as well as their salary slabs

STATE WISE APPLICABILITY OF PROFESSIONAL TAX

States where professional tax is implemented States where professional tax is not implemented
  • Andhra Pradesh
  • Assam
  • Bihar
  • Chattisgarh
  • Gujarat
  • Karnataka
  • Kerala
  • Madhya Pradesh
  • Maharashtra
  • Manipur
  • Meghalaya
  • Mizoram
  • Orissa
  • Puducherry
  • Tamil Nadu
  • Tripura
  • Jharkhand
  • Punjab
  • West Bengal
  • Himachal Pradesh
  • Jammu & Kashmir
  • Nagaland
  • Sikkim
  • Rajasthan
  • Telangana
  • Arunachal Pradesh
  • Delhi
  • Goa
  • Haryana
  • Uttar Pradesh
  • Uttaranchal
  • Andaman & Nicobar
  • Chandigarh
  • Daman & Diu
  • Dadra & Nagar Haveli
  • Lakshadeep
INR 700
pER nUMBER

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Frequently Ask Questions on Professional Tax:

Every person engaged actively or otherwise in any profession, trade, callings or employment and falling under one or the other of the classes mentioned in the second column of Schedule I appended to Profession Tax Act, is liable to pay Profession Tax.

The categories of persons liable for Profession Tax are any individual, a Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association.

Every employer, other than Government officer, who is liable to deduct and pay Profession Tax on behalf his employees, is given a registration certificate. Every person liable to pay profession tax, other than a person whose profession tax is payable and paid by his employer, is given a enrolment certificate i.e. enrolment certificate is issued to an individual person, company, society etc as the case may be only while registration certificate may be issued to any of categories of persons such as individual, a Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association.

Every employer, other than Government officer, who is liable to deduct and pay Profession Tax on behalf his employees, is given a registration certificate. Every person liable to pay profession tax, other than a person whose profession tax is payable and paid by his employer, is given a enrolment certificate i.e. enrolment certificate is issued to an individual person, company, society etc.

Any of the categories of person described at Sr. No. 2, who is paying salary or wages to one or more employee, wherein this salary or wages paid to anyone or more employees exceeds Rs. 7500/- for male & 10,000/- for female per month, is liable for registration under Profession Tax Act. Such a person can only apply for registration certificate.

Every person who is liable to pay profession tax other than a person whose profession tax is payable and paid by his employer is liable for enrolment, which means a person engaged in a profession described at column no. 2 of the Schedule I at Sr. No. 2 and onwards has to apply for enrolment. Similarly an Indian citizen in the employment of any diplomat or consular office or trade commissioner of any foreign country situated in any part of the Maharashtra State, if liable to pay tax, has to apply for enrolment. Also an employee earning total salary or wages exceeding Rs. 7500/- for male & 10,000/- for female from two or more employers who do not deduct and pay Profession Tax on his behalf, has to obtain enrolment certificate.

The application for registration or enrolment is to be made to the concerned registration authority for Profession Tax, at Vikrikar Bhavan, Mazgaon by the applicants based in Mumbai or at the nearest Sales Tax office of the district, by the persons who are based out side Mumbai.

 Yes , it is necessary for a Registered dealer under GST Act to obtain registration under Profession Tax Act ,if he/she has employed one or more persons who are drawing salary in excess of Rs. 7500/- for male & 10,000/-for female per month.

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OUR MISSION

To deliver professional services at an economical rate and on timely basis because we value your precious time. We aim at helping small businesses to compete effectively in the market. We wish to be known by the quality of services we provide.

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We have people who are very particular about there work ethic. In our entity, work comes first. We have staff who are highly qualified. We also run a CA firm from the past 30 years. 

COMPETITIVE EDGE

In general we have expertise in all our fields of work but our compliance work is what gives us an edge over the other companies. We are very thorough with our follow ups resulting in everything being done well in advance, thus avoiding unnecessary delay.