Introductions

PTEC stands for Professional Tax Enrolment Certificate and PTRC stands for Professional Tax Registration Certificate. Usually these Registrations 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 employee then it will only require to pay PTEC and not PTRC and pay for Directors and Partners. Here you will get details of PTEC and PTRC registration in Maharashtra./p>

Who Is Responsible for Paying Professional Taxes?

Employers are accountable for computing, collecting, and paying professional tax to the appropriate State Government on behalf of their staff. They must do so in conformity with the legal requirements of the relevant State, including any financial requirements.
A person engaging in a trade or profession, such as an employer, corporation, partnership business, limited company, etc., is also obligated to pay professional tax on that trade or profession in line with the financial barrier (if any) specified by the relevant State’s regulations.

Who Is Exempted From Paying Professional Tax?

  • Any foreign employee is exempt from paying the Professional Tax.
  • Any person who is above the age of 65 years.
  • Any temporary worker who is working in the textile industry.
  • Parents or guardians of any child or children with disability (permanent one or mental)
  • Any woman who is working, as an agent, exclusively, under the Indian government’s Mahila Pradhan KshetriyaBachat Yojana
  • Any person suffering from a permanent physical disability, including blindness.
  • Any member of the forces as stated in the Air Force Act, 1950, the Navy Act, 1957, and the Army Act, 1950, which includes participants of reservists or auxiliary forces, serving in the respective State.

PTRC-Professional Tax Registration Certificate

This certificate should be obtained by every person including firms and HUF, having employees. There is no minimum requirement of employment strength to obtain this certificate. This certificate should be obtained, even if a single employee is enrolled. An establishment having employees should obtain both Enrollment as well as Registration Certificates except for Partnership Firms. For Partnership Firms, each partner should obtain the Enrollment Certificate and the firm should obtain Registration Certificate.

Professional Tax rates in Maharashtra

Monthly salaryTax per month
Up to 7,500 – MenNil
Up to 10,000 – WomenNil
From 7,500 to 10,000175/-
Exceeds 10,000/-200/- (Rs.300 in month of February)

Due date for filing PTRC Return in Maharashtra

Annual Tax Liability During the Preceding YearPeriodicityDue Date for Payment & E-Return Filing
Less than Rs.1,00,000Annually*31st March of the respective financial year.
Above or equal to Rs.1,00,000MonthlyLast date of the respective month.
*Periodicity is monthly in the first year of registration.

Late fee for delay in filing return

Rs.200/- if return is filed within 30 days of the due date
Rs.1000/- if delay is more than 30 days of the due date

PTEC -Professional Tax Enrolment Certificate

This certificate should be obtained by every person except firms (whether registered under Partnership Act 1932 or not) and Hindu Undivided Family (HUF) engaged actively or otherwise in any profession, trade callings or employment and falling under any of the classes mentioned in the schedule I of the act and shall be liable to pay to the State Government, tax as per the rates mentioned against the class of such persons mentioned in the said schedule.A maximum of Rs.2500/- is payable as professional Tax for the entire year. Further, a director, partner who is supposed to take enrollment certificate and pay Rs.2500/- is required to pay only once and not for each company or firm in which he is a director and / or partner.Due date for filing PTEC Payment in Maharashtra is 30th June every month and the same is payable in advance for every financial year.

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