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PTRC-PTEC Registration  

1. What is Professional Tax?

Professional tax is a state level tax which is imposed on income earned by way of profession, trade, calling or employment. The tax is based on slabs depending upon income of individual who may be self-employed or working as employee of an entity. At present the maximum tax that can be imposed is restricted to is Rs. 2500/-.

2. Applicability of PTEC and PTRC:

  • Applicability of PTEC: Every person who is engaged in any profession (business or service) excluding that of Partnership firm or HUF is liable to pay a profession tax of Rs. 2,500/- p.a. with the government every year after the incorporation or commencement of business. (LLP and All Companies are covered)
  • Applicability of PTRC: This certificate is to be obtain by every person who is liable to deduct profession tax of any employee whose monthly salary is above Rs. 7,500/- in Maharashtra

3. What is Enrolment certificate and what is Registration certificate?

Every employer in specific states is required to deduct taxes from salary when paid to one or more employees when payment made exceeds Rs 5000(this limit is for Maharashtra) and deposit with state government. That entity is required to obtain registration certificate. When person is employed in profession by two or more employers and is getting salary/wages exceeding Rs. 5000 but employer is not deducting professional tax then the individual needs to get enrolment certificate from authority.

4. What are the Required Documents? 

  • Address proof of establishment (Any utility bill and NOC from the owner if the establishment is rented)
  • Address proof of partners, proprietor or directors as applicable
  • PAN of partners, proprietors and directors as applicable
  • Photo of partners, proprietors and directors as applicable
  • Scanned copy of Signature of partners, proprietors and directors as applicable
  • Cancelled Cheque
  • Salary details of employees
  • Financial statements of the establishment
  • Certificate of incorporation and address proof in case of company

The Certificate of PTEC or PTRC is to be applied by a person within Thirty days from the date he is liable to pay Professional tax.

 5. Registration process for PTEC and PTRC:

 STEP 1: Creation of Temporary Profile

STEP 2: Change Password of Temporary Profile

STEP 3: Navigating & Completing the Registration Tab

STEP 4: Enter Address, Place of Business and Bank Details

STEP 5: Tick the Declaration & Upload documents

STEP 6: Preview & Download

STEP 7: Submit Completed Application form

STEP 8: After Reviewing the application there can be grant of Registration Certificate or Rejection of the Application.

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Note: This working is as per our research and it cannot be considered as complete data. It is as per our knowledge. There can be modification in the contents of this working from time to time as and when required.

Prepared By : Ramya C Nathan | (Research intern at UFAS)

Approved By: Reetika Siddharth Upadhyay | (Founder UFAS)

Author Bio

Reetika .S. Upadhyay is a qualified professional with Experience of around 8 years in Tax consultancy. Our primary goal is for our clients, community, and team to succeed. We measure our success by their success and we focus our resources on investing in the future. Our object is to provide a com View Full Profile

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10 Comments

  1. M Srijesh Kumar says:

    Our company is registered in Maharashtra and engage in Works Contract Business in 10 states.

    Do we need PT registration in all 10 states and pay PTEC @ Rs. 2500/- in all 10 states?

  2. JITENDRA PATIL says:

    I am Registered in Mumbai, Maharashtra for PT but doing site work in Surat Gujarat , If i can pay the PT in Maharashtra or if i have to get register in Gujarat and pay PT in Surat

  3. Ajay Jagdish Lad says:

    If an employee paying PTEC contribution every year. And providing payment copy as a proof of payment Can he be exempted from PTRC deduction from salary?

  4. Snehal chitambar says:

    Our company is under the process of closure & to be closes the all compliances till the end of june 2022; is the company liable to pay the PTEC of Rs. 2500/- for FY 2022-23?

  5. Gurpreet Singh says:

    If a company is registered in WB but has its principal place of business in Maharastra, where does it need to get PT registration?

  6. Reetika.S.Upadhyay says:

    Dear Mr. Ravindra,

    Thankyou for writing to us.
    Yes, it needs to be registered since an agency through which it is operating is based in India and also it’s business is being operated in India.

    In case of any further query feel free to contact us.

    Thanks & Regards,
    Team UFAS

  7. Ravindra Sarawate says:

    Is a Foreign Company which is not registered in India but operating through an Agency, required to register under Profession Tax Act? Just because the Foreign Company is registered under Income Tax and GST? There is no employee for this foreign company in India.

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