In this Blog we shall see about government’s mandate on PTEC Compulsory for GST registration in Maharashtra. Professional tax is a tax imposed at the state level on individuals involved in various professions, trades, and employments. Its administration is overseen by the respective state governments, with the Maharashtra Profession Tax Department handling this tax in the state of Maharashtra.
In contrast, GST is a comprehensive indirect tax applied to the supply of goods and services nationwide. The Goods and Services Tax Council, comprising representatives from both central and state governments, regulates GST.
While professional tax and GST represent distinct tax obligations, it’s crucial to recognize that individual states may have specific regulations and requirements. In Maharashtra, any business or profit-motivated profession must acquire a Profession Tax Number and annually fulfil their professional tax obligation by submitting the appropriate challan and return.
Recently, the Maharashtra Profession Tax Department has mandated that PTEC Compulsory for GST registration. The department is issuing notices to individuals who have applied for a GST certificate but lack a professional tax certificate. Consequently, obtaining Professional Tax Registration Mandatory for GST Registration in Maharashtra.
This requirement is implemented to ensure compliance with both GST and professional tax regulations among individuals and businesses. Acquiring a profession tax number and meeting the associated obligations has become an essential step in the process of obtaining GST registration in Maharashtra.
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Who are exempted from paying Professional Tax?
In the state of Maharashtra, specific groups of individuals are eligible for exemption from professional tax registration as delineated in the regulations. The exempt categories comprise the following individuals:
- Foreign employees are not required to pay professional tax.
- Indians working for the Foreign office and consultants are not obligated to obtain a registration certificate
- Exemption is granted to senior citizens aged 65 years and above.
- Parents of physically challenged children are also exempt from professional tax.
- Individuals with a disability exceeding 40% and badli workers in the textile industry are also exempt from professional tax.An individual suffering from permanent physical disability, including blindness.
- Those serving in the Central Para Military Force (CPMF).
- Civilians who are members of the Armed Forces, including both combatants and non-combatants.
- Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana of the Directorate of Small Savings.
Furthermore, it’s essential to note that this list is not comprehensive, and there might exist additional specific exemptions or categories of individuals exempted from professional tax as per the regulations. These exemptions are designed to offer relief or acknowledgment to particular groups based on their unique circumstances or contributions.
Why PTEC is Compulsory for GST Registration?
Upon receiving a notice for PTEC (Professional Tax Enrolment Certificate) registration subsequent to applying for GST registration, it is imperative to adhere to the outlined requirements in the notice. This typically involves securing PTEC registration and furnishing the registration details to the GST department.
Following the completion of PTEC registration, it becomes crucial to respond or provide clarification in accordance with the notice. This can be accomplished through the GST portal—an online platform facilitated by the GST department for taxpayers to manage their GST-related activities.
The response or clarification should effectively address any queries or concerns articulated in the notice, supplying the requisite information or documentation as stipulated. It is paramount to meticulously review the notice, comprehending the specific actions or information sought by the GST department.
By promptly undertaking the necessary measures, including obtaining PTEC registration, submitting registration details, and offering a timely response through the GST portal, compliance with the regulatory directives can be assured.
Documents required for PTEC and PTRC Registration in Maharashtra:
- Proof of establishment address
- Address verification for partners, proprietor, or directors as applicable
- PAN details for partners, proprietors, and directors as applicable
- Photographs of partners, proprietors, and directors as applicable
- Employee salary particulars
- Certificate of incorporation and address verification for companies
Due Date for Online Payment of PTEC and PTRC
- The payment deadline for professional tax in Maharashtra is linked to the business establishment’s enrolment date. If a business is enrolled before the start of a year, on or before May 31st, the payment deadline is June 30th of that year. For businesses enrolling after May 31st, the professional tax payment is due within one month from the enrolment date.
In the case of PTRC (PT Registration) Entities with a professional tax liability exceeding Rs. 1,00,000 must submit a monthly professional tax return by the last day of each month. Entities with a tax liability of less than Rs. 1,00,000 in the previous year are mandated to file an annual tax return by March 31st.
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