Frequently asked question on Profession Tax (PT) in Maharashtra
1. Who is liable to pay Profession 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.
2. What are the categories of persons liable for Profession Tax?
Ans. 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.
3. What is registration certificate for profession tax and what is enrolment Certificate?
Ans. 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 described at serial no.2.
4. Who can apply for registration certificate?
Ans. 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. 5000/- per month, is liable for registration under Profession Tax Act. Such a person can only apply for registration certificate.
5. Who can apply for enrolment certificate?
Ans. 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. 5000/- from two or more employers who do not deduct and pay Profession Tax on his behalf, has to obtain enrolment certificate.
6. Where to apply for registration/enrolment?
Ans. 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.
7. If the dealer is registered under MVAT Act, then is it necessary to be registered under Profession Tax Act?
Ans. Yes , it is necessary for a Registered dealer under MVAT Act to obtain registration under Profession Tax Act ,if he has employed one or more persons who are drawing salary in excess of Rs. 5000/- per month.
8 Can those employing wage earners get a registration certificate?
Ans. Yes, they can get Registration Certificate if they are employing wage earners on regular basis, as only persons earning wages on casual basis are not liable to pay profession tax.
9 What is the time limit for obtaining Registration Certificate as an employer?
Ans. An employer, who wishes to obtain Registration Certificate, has to apply for the same within thirty days of his becoming liable to pay tax.
10. What is the penalty for furnishing wrong information’s?
Ans. The penalty prescribed as per section 5(6) for giving false information in application for Registration Certificate or Enrolment Certificate is equal to three times the tax payable under the Profession Tax Act.
11. Where and how much Profession Tax is to be paid?
Ans. The Profession Tax can be paid according to Schedule I appended to the act at any of the places defined as ‘treasury’ in rule 2(7).
12. What is the rate of interest for late payment?
Ans. The rate of interest is one and quarter percent per month of the amount of such belatedly paid tax.
13. Are self employed persons eligible to get enrolment certificate?
Ans. The self employed persons who are covered by any one of the entries mentioned at Sr. No. 2 and onwards in the schedule I appended to the Profession Tax Act, are eligible to get enrolment certificate.
14 Are medical practitioners, commission agents and partners of firms eligible for enrolment certificate?
Ans. Yes, they are eligible as follows:-
| Class | Entry |
| Medical Practitioners | 2(b). |
| Commission Agents | 2(e). |
| Partners of firms | 19. |
15 Is there any facility of making lump sum payment of Profession Tax?
Ans. Yes, there is a facility of making lump sum payments for Enrolment Certificate holder who is liable to pay tax at the rate of Rupees 2500 per annum.
16. What are the advantages of making lump sum payment of tax?
Ans. The Enrolment Certificate holder can discharge his liability for the next five years by making payment in advance of a lump sum amount equal to four times of such rate of tax on or before 30th June, so advantage in paying lump sum is that of, saving of one year’s liability.
17. What type of incentives will be available after making such lump sum payment?
Ans. The incentive is that any increase in tax liability in future during those five years shall not vary the tax liability i.e. Such a Enrolment Certificate holder will not have to pay any additional amount on account of increase in rate of tax during those five years.
18. Who is assessed under Profession Tax Act?
Ans. An employer liable to pay Profession Tax is assessed under Profession Tax Act.
19. What are the rates of tax under Profession Tax Act?
Ans. The rates of tax under the Profession Tax are given in the schedule I appended to the Act, which may kindly be referred.
20. On what basis Profession Tax shall be calculated?
Ans. Profession Tax shall be calculated at the rate mentioned in Schedule I at Sr. No. 1, on the basis of salary or wages earned per month by the employees and for others it shall be calculated at the rate mentioned in front of their corresponding entry in Schedule I.
21. If there is no previous year in the profession then what will be the rate of Profession Tax?
Ans. Only for the purpose of Entry 8 pertaining to dealers registered under MVAT Act or only under CST Act, if there is no previous year for such dealer, the rate of the tax shall be Rs.2000.
For persons covered by other entries there is no concession available once the person becomes liable to pay tax except persons covered by entry no.2 and entry no.4, who are not liable to pay tax during first year of standing in profession.
22 Who can get exemption from Profession Tax?
Ans. Exemptions from paying profession tax is granted to:-
1. Members of defense as defined in Army Act 1950,Airforce Act 1950,Navy Act 1950 reserve and auxiliary services drawing pay and allowances under the budgetary allocations of Defense Services excluding persons drawing pay and allowances from the establishments of Defense Ordinance Factories situated in any part of the Maharashtra State,
2. the badli workers in the textile industry,
3. any person suffering from permanent physical disability as specified in rule 32(1),
4. Women exclusively engaged as agents under Mahila Pradhan Kshetriya Bachat Yojana of Directorate of Small Savings,
5. Parents or Guardian of any person suffering from mental retardation specified in rule 32(2),
6. Person who has completed the age of sixty five years,
7. Parents or guardians of a child suffering from a physical disability as specified in rule 32(1).
23. Whether it is necessary to submit medical certificate for exemption from Profession Tax?
Ans. If the exemption is claimed on account of self physical disability OR physical or mental disability of a ward, it is necessary to submit medical certificate issued by a doctor working in the Government Hospital.
24 Can parents/Guardians of physically handicapped children get exemption from Profession Tax?
Ans. Yes, parents/ guardians of physically handicapped child can get exemption provided that the physical disability is as specified in rule 32(1).
25 Who is appellate authority under Profession Tax Act?
Ans. For first appeal against any order passed by Profession Tax Officer, in Mumbai, the appellate authority is Deputy Commissioner of appeal (P-2), Mazgaon, while for areas outside Mumbai the respective Deputy Commissioner of appeal in that area is the first appellate authority. Against the order passed by Deputy Commissioner of appeal the next appeal is to filed with the concerned Joint Commissioner of appeal of that area.
The appeal against the order passed by any officer not below the rank of Joint Commissioner is to be filed with Maharashtra Sales Tax Tribunal, Mumbai.
Sir,
I would like to discus the issue on exemption from profession Tax.
In case of multiple disability i.e.
1. L4-L5 PID with Lt. LL Weakness (Grade II) is at
15%
2. Pthyasis Bulbi Rt. Eye at 30%
is this person is eligible for getting exemption from PT? Please opine.
we want to register under PTRC of Mumbai branch of Partnership Firm who’s head office is in Moradabad U.P. can is it applicable partner to enroll PTEC also they are not residing in Maharashtra neither drawing remuneration / salary from Mumbai office only Branch office is running
Does an individual need to enrol for 2 registrations if he is a proprietor in one company and a partner in another company?
Or one registration is only required?
if office resignation in Maharashtra and branch office in Delhi professional tax applicable or not ??
I had registered for PTEC in April 2014 but I shut down my startup in feb 2015. Am I liable to pay PTEC fees after feb 2015. Now I want to revive my business, what is my liability for PTEC? Can I just make payment for current year not worrying about previous years. I also want to apply for GST no. Can I specify my PTEC no without worrying that GST no will be rejected for not making PTEC for previous years. I was paying PT as part of my job between 2015 and 2017
In Current FY, I am not working. So have No Consulting or Salary income. However I was Regd for Prof Tax in Last FY when I was working. So do I need to pay Prof Tax in Current FY even though I am not having any Salary or Consulting income? I am in Maharashtra
I am working with one organization and working as LIC agent also. My PT is deducted from LIC as well as my organization.Is there any rule to pay a PT only onece from LIC or from organization
How to regenerate pt challan
Will Profession tax apply on accrual of salary for a month
How to file Salary_Professional tax offline?
In Maharashtra we have two locations in different districts. Should we pay tax & file return separately or we can combine it
i have my own proprietary firm , of doing industrial job work in maharashtra, and i have done the GST registration and i am paying tax .
so my question is that wheather i would have to register under professional tax or not ?
and if yes the i have to register under PTEC or PTRC.
If the employer doesn’t have an office in Bihar but paying salary to his employee in Bihar, is he also liable to obtain certificate of registration?
If the employer doesn’t have an office in Bihar but paying salary to his employee in Bihar, is he also liable to obtain certificate of registration?
Dear sir If any women employee earns less than 10000/-Rs.monthly then she is liable to pay PT or Not & what is the slabs for women employee.
Our registration of PTRC is in maharashtra state and employees are working in M.P. for a period of 2 years .Is P.T.liability is in Maharashtra state or in M.P.?
Qus:22 Like badli workers temperory workers,employees of any institution are exempted from professional tax ?
I AM A SELF COMPLOYED CIVIL LABOUR CONTRANCTOR,GET CONTRACT TOBE COMPLECTED IN 2-3 MONTH,REGULAR CONTRANT DEPEND ON MARKET WORK,I EMPLOYED NAKA WORKER TO GET THE WORK COMPLETED ON WEEKLY BASIS,
QUESTION:
AM I REQUIRE TO PAY /DEDUCT PT AND PAY. BECAUSE WORKER ARE CASUAL.
my salary of may 17 is Rs. 8419/- and June 17 is Rs.6000/-,
then how much professional tax deduct from my salary of each month
I am a contractor and my employees are working in Madya Pradesh where I don’t have physical office. My question is how do I need to pay Professional tax as I am not registered in PT as I don’t have office in MadyaPradesh.
Does professional tax has to be deducted from employees of Charitable or religious trust ?
in full and final settlement, is PT applicable on leave encashment.
Salary is 6000/-
Leave encashment 6000/-
Total earning = 12000/-
is PT applicable?
Dear Sir,
I am salaried employee in Maharastra. Recently I have taken a car on Company lease. I have appointed a driver and paying 12000 INR per month as driver’s salary. Am I liable to pay professional tax on same.
Regards
Deepak
Sir We started business in 1999 and our PT No. effective from 2001 our enterprise closed in year 2002 but pt no. is not cancelled … we file regular return of amount zero i.e. no business .. PT Tax department send notice for payment 2001 to 2016 by applying fine and punishment Rs. 780000/- sir our business is closed since2002 we are liable to pay professional tax …
hello dear sir
i have ,y client and he hold individual professional tax certificate.
most big thing is he does not file tax on the same date which is date give.
so let me give information what will let penalty and how they will charge.
Hi,
I am employed with a pvt ltd company (not in capacity of director) which deducts monthly TDS on my salary. Also I am a director of one of my family company which has not deducted PT from my Director Remuneration as my PT is already deducted in other company. However the PT officer has demanded to pay my PT on the Director Remuneration in my family pvt ltd. Do i need to pay the PT amount again or is there any specific notification?
200 RUPEES WILL BE GIVEN TO TAX GURU IF U ARE ABLE TO REVEAL THE MYSTERY BEHIND THE “FREEZING” OF E-SERVICE OF MAHAVAT.GOV.IN IN MUMBAI
WHEN WILL TAX GURU LET US ALL KNOW WHY THE E-SERVICES OF MAHAVAT is TOTALLY DEAD?
IT IS SIMPLY A FRAUD SITE OF MAHA GOM?
For this ON=LINE Registration of PTRC why does the REM-TXT File not “automatically UPLOAD” when without errors? What shd I do if the E-SERVICES TILE “DOES NOT OPEN” even when Pressed? I want to get a Charitable Trust registered an I am Stuck becoz of this faulty E-SERVICES for the last 1 month in MUMBAI
we have contract multiple location in Kerala ,then should pay the P Tas in One office or we have to pay all panchayath where our site is running. ??
I have joined XYZ Company and also have my own business. I am PTEC holder and have paid a lump sum amount for 5 years towards Professional Tax. However submitted the Chalan copy to XYZ company to stop deducting my Professional Tax as it is already paid.
XYZ company replied : “Provide us with the provision in PT Act where employer will not deduct PT from employee if he has already paid.
Is there any provision for the same in PT Act? I have already paid PT for this year Rs. 2500/- still my XYZ company deducting PT from my salary?
I have joined XYZ Company and also have my own business. I am PTEC holder and have paid a lump sum amount for 5 years towards Professional Tax. However submitted the Chalan copy to XYZ company to stop deducting my Professional Tax as it is already paid.
XYZ company replied : “Provide us with the provision in PT Act where employer will not deduct PT from employee if he has already paid.
Is there any provision for the same in PT Act? I have already paid PT for this year Rs. 2500/- still my XYZ company deducting PT from my salary?
I have joined XYZ Company and also have my own business. I am PTEC holder and have paid a lump sum amount for 5 years towards Professional Tax. However submitted the Chalan copy to XYZ company to stop deducting my Professional Tax as it is already paid.
XYZ company replied : “Provide us with the provision in PT Act where employer will not deduct PT from employee if he has already paid.
Is there any provision for the same in PT Act? I have already paid PT for this year Rs. 2500/- still my XYZ company deducting PT from my salary?
Atleast in Maharashtra State, Yes.
No.
For all the entries / Rate schedules etc, Maximum Profession tax that should be paid is Rs. 2500/- only.
hence for an Individual having multiple business / engaged in Multiple professions etc. will have to pay PT @ 2500 only
No. Company is a separate Legal identity & a separate person assessable under profession tax Act. Hence, Company is required to Pay its own profession Tax.
In capacity as a director, if you are getting salary, then company should apply for PTRC, Deduct your PT from salary and pay to Government.
If, In capacity as a director, you are getting professional fees, then you need to get yourself registered under PTEC and pay PT by 30 th June every year.
You hold directorship of multiple companies is irrelevant. Only single company director will also require to pay PT as per above mentioned details. same applies to multiple company directors.
Regards
Now after Budget Pronouncements for March-16, an amnesty scheme for PTEC is being launched, by which, you will be required to take registration and pay PT for only last 3 Years.
And then you are immune.
Yes. Very Much responsible to pay PT.. However,
1. If you are getting payments in the nature of Salary, then your employer must deduct & Pay
2. If you are getting payments as Professional Fees, then you will have to get registered under PTEC and pay PT for every year by 30 June
we have LLP firm , Mr. XYZ joine in our company in Sep-15 & his 4 days salary was Rs.1190/- for sep-15 , We have deducted his profession Tax Rs.175/- .
and his salary of Oct-15,Nov-15,DEc-15 & Jan-16 is Above Rs.10,001 , but we deduct his profession Tax by mistake Rs.175/-
Now we are going to deduct is Profession Tax in Month of Feb- Rs. 300/-
Que :Should we deduct balance Amt Rs. 25 of Each month from Oct-15 to Jan-16 ( Total Rs. 100 ) ?
Or Should we use deducted Amt of Sep- Rs.175/- aginst bal Amt of Oct-15 to Jan-16 .
Please give me the solution.
Hello,
I own an LLP. I do not have employees. There are 2 partner in the LLP. Both the partners get paid by LLP. Do, both of us need to register for Professional Tax? Or does LLP needs to register for professional tax?
I am teacher in my private classes my income is yearly up to 7 lakhs. pleaese suggest me whether i am responsible for for payment of professional tax
I am an Architect self employed since 10 years but have never taken PTEC. If I take PTEC now what are the consequences?? Penalty/ older dues??
Respected Sir,
If Person is holding directorship in more than one company than, Whether he shall to,
1.) Obtained individual PTERC certificate (i.e. Company Wise.)
2.) If Yes, then he shall be liable to pay PT as per company wise in which he is holding the Directorship
Hi,
I want to know ,if same person is engaged in more than two
Professions at a same time , and paying profession Tax ( under Maharashtra profession Tax act )t
Then whether that person has to pay saperate propession Tax for each saperate progession ?
e.g. if a person is Advicate + LIC Agent. Then whether two profession tax be paid .
– See more at: https://taxguru.in/goods-and-service-tax/frequently-asked-question-on-profession-tax-pt-in-maharashtra.html#comment-1075421
Dear Sir,
I am working at presently in three organisation. Now every organisation are deducting my professional tax. Can i save professional tax from other two organisation or any other way to save professional tax as my yearly professional tax will Rs. 7500/- (2500*3).
Kindly suggest me sir
Sir,
In last FY 2014-15 change job from November 2015.
My previous Employer 1 deduct PT 2500 and new Employer 2 deduct PT 1100. Is there is any provision to refund of PT.
if yes what should I do now? please guide
I AM GETTING SALARY IN CASH. SO HOW SHOULD I PAY PROFESSION TAX & WHAT IS THE PROCEDURE FOR INDIVIDUAL PROFESSION TAX REGISTRATION?
WHAT IS THE PROCEDURE FOR PAYING INDIVIDUAL PROFESSION TAX.
A person is a director in 3 companies. Does he need to pay professional tax 3 times. His PT is being deducted and paid by one company. how does he
go about informing the govt department about this payment.
Thanks.
PS
Hello sir, Our society’s area of operation is in eight states. and we already pay prof tax amount to Maharashtra govt. becuase our head office is situated in Maharashtra. Please tell me now we are agree to new registration of prof. tax in other state. But our main problem is excess amount paid to Maharashtra Govt. Is it possible to refund the amount from Maharashtra govt. or divert the amount to other state.