Goal of PTEC and PTRC registration in Maharashtra is to impose professional tax on individuals earning income from their profession or employment. Professionals like lawyers, teachers, doctors, and chartered accountants need to pay this tax. For salaried individuals, the employer deducts the professional tax from their salary and submits it to the state government. Those not covered by an employer must pay this tax themselves.
In Maharashtra, PTRC (Professional Tax Registration Certificate) is a state tax collected by employers from employees’ monthly salaries. Employers must deposit this amount to the government, or face penalties. PTRC, or Professional Tax Registration Certificate, is a crucial document that empowers employers in Maharashtra to manage the deduction and deposit of professional tax from their employees’ salaries. This obligation arises within 30 days of establishing a business in the state. Importantly, professional tax is not restricted to regular employees; it also applies to directors and partners associated with the business.
It’s essential for a business to secure a PTRC once it starts compensating any employee with a monthly salary of ₹7,500 or more.
PTEC (Professional Tax Enrolment Certificate) in Maharashtra is for independent workers who must pay the professional tax themselves. Required PTEC Registration for Company itself, its directors, and partners in LLP or partnership firms, proprietors, and professionals associated with the business.
To register for PTEC and PTRC, individuals need to fill out the relevant forms and secure login details.
Failure to obtain PTEC and PTRC registration in Maharashtra can result in penalties as per the provisions of the act.
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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
For whom PTEC and PTRC Registration is Mandatory?
- Any individuals who are earning money through work or trade in India.
- As per the rules, every professional with a consistent monthly income must pay a specific tax. Professionals can obtain a unique registration number by signing up on the P-Tax portal, which they can then use to make the tax payments.
- It is the duty of business owners to register for P-Tax, and they are required to deduct the professional tax from their employees’ salaries to comply with the regulation.
- Apart from Individuals, Company and LLP also required PTEC.
- Having a Professional Tax Enrolment Certificate (PTEC) is mandatory for obtaining GST Registration in Maharashtra.
Employer is responsible for deducting professional tax from an employee with a monthly salary exceeding Rs. 7500 must obtain a PTRC (PT Registration).
Individuals, excluding partnership firms or Hindu Undivided Families (HUF), involved in their own business after its incorporation or commencement, need to obtain a Professional Tax Enrolment Certificate (PTEC).
Who are exempted from paying Professional Tax?
- 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.
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 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.
Penalty for Late payment of Professional Tax
An enrolled individual incurs a penalty of 1.25% of the tax amount for each month of delay in payment. Meanwhile, employers are obligated to pay 2% interest per month on the total outstanding amount if they fail to pay or delay the payment.
PTEC and PTRC Payment Online in Maharashtra
- Follow the steps below to make PTEC and PTRC Payment Online in Maharashtra:
- Visit the official website of the Maharashtra GST Department and click on the ‘e-payment’ option.
- Choose the appropriate option based on the status of your professional tax payment.
- Select the relevant professional tax act, either PTEC (Professional Tax Enrolment Certificate) or PTRC (Professional Tax Registration Certificate) Act.
- Enter the necessary details, including the payable amount, period of professional tax payment, mobile number, etc.
- Click on ‘Proceed to Payment.’
- Upon successful payment, an acknowledgment receipt will be displayed on the screen. You can capture a screenshot or download it for future reference.
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