In this article we have discussed the synopsis of Professional Tax Enrollment Certificate (PTEC) and Professional Tax Registration Certificate (PTRC) in Maharashtra:

PTEC:

Q 1. Who is liable for PTEC registration?

Ans: As per the amendments in the Profession Tax Act 1975, a person (natural / legal) registered under MGST Act is liable to enrol for Profession Tax Enrollment Certificate (PTEC) and pay Rs.2,500/-  per annum except Partnership firms and HUFs (but each partner of a partnership firm and each co-parcener of HUF are liable for enrolment, see Entries 19 & 20 in Schedule 1).

Q 2. Time Limit for enrolment of PTEC?

Ans: Application for enrolment shall be made within 30 days from date of commencement of profession, trade, calling or employment

Q 3. Due Date for PTEC payment?

Ans:  Every enrolled person shall pay the tax within one month from the date of enrolment in the first year, thereafter by 30th June of every year. eg. PTEC enrollment done in Nov 2019, then we should pay PTEC on or before 31st Dec 2019 and in future, by 30th June of every year.

Q 4. Opt for Lumpsum payment option (OTPT Scheme)?

Ans: Enrolled person/s can avail the benefit of Lumpsum payment scheme, as provided u/s. 8(3) of the Profession Tax Act. Accordingly one can discharge his liability for five years by making advance payment, of an amount equal to four times of annual tax liability, on or before 30th June of the year i.e Rs. 10,000/- (Rs.2,500*4 years) instead of Rs.12,500/- (Rs.2500*5 years). If the amount is not paid by 30th June it can still be paid before 31st March, by paying an additional lump sum amount calculated @ ₹ 200 p.m. (w.e.f. 1-4-2000) for the period of delay. Any increase or decrease in the rate of tax within the aforesaid period of five years shall not vary the tax liability of such person. 

PTRC:

Q 1. Who is liable for PTRC registration?

Ans:  In addition to PTEC, if the business is having any employee whose monthly salary is above Rs. 7500/- is also required to obtain Profession Tax Registration Certificate (PTRC) and pay tax after deducting the same from the employee’s salary as per the provisions of law.

Q 2. Time Limit for registration of PTRC?

Ans: Application for enrolment shall be made within 30 days from date of commencement of profession, trade, calling or employment or within 30 days of becoming liable to pay tax under the Act.

Q 3. Due Date for PTRC Payment and Return?

Ans: Every registered employer shall furnish a return in Form III-B (electronic return). Due
Dates for PTRC:

a) If tax liability during the previous year or part thereof was less than ₹ 50,000 Annual Return on or before 31st March of the year (for salary paid for the months from 1st March to 28th February)
b) ₹ 50,000 or more Monthly Returns on or before the last day of the month (covering salary paid for the preceding month)

Note: Kindly note that in case of new registration, the employer shall file monthly return for all the months commencing from date of liability till 31st March of that financial year. For example, if a employer was liable for PTRC registration and payment from June 2019 then he shall file monthly PTRC returns for the period July 2019 to March 2020 (June 2019 PTRC to be paid and return should be filed in July 2019). Then for deciding the periodicity of next financial year, we should check the total  PTRC liability of previous year i.e July 2019 to March 2020 we can decide whether to file monthly return  or yearly return for next financial year i.e F.Y2020-21.

Q 4. What are the Rate of Taxes?

Ans: Following are the profession tax rates:

  • In case of male – salary  exceeds 7,500 but do not exceed  10,000: 175/- p.m
  • In case of female – salary exceeds 7,500 but do not exceed  10,000:  NIL
  • In case of female and male salary  exceed 10,000: 2,500 per annum, to be paid in the following manner:

(a) 200/- per month except for the month of February;

(b) 300/- for the month of February

Q 5. Whether Interest to be paid in case of delayed payment?

Ans: Interest on delayed payment of both PTRC and PTEC payments for first month is @ 1.25% p.m., for next two months is @ 1.50% p.m. and thereafter is @2% p.m

For Example:   PTRC Payable for the month of Nov 2019: Rs.10,000/-

Due Date of Payment:    31-12-2019
Actual Date of Payment:   28-03-2020
Interest Payable: Rs.425/-
((10,000* 1.25%* 1 month) + (10,000*1.50%*2 months)

Q 6. Any list of Exemption from Profession Tax?

Ans:  The following individuals are exempted to pay Professional Tax:

  • Parents of children with permanent disability or mental disability.
  • Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.
  • Badli workers in the textile industry.
  • An individual suffering from a permanent physical disability (including blindness).
  • Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
  • Parents or guardians of individuals suffering from mental disability.
  • Individuals, above 65 years of age.

Q 7. Documents required PTEC and PTRC registration?

Ans: Following documents are required for registration:

1. Pan of the assessee
2. Aadhaar Card copy
3. Cancelled Cheque
4. Passport size photo of Proprietor/ Director/Partner etc.
5. Latest electricity bill of the register office/ place of business in case of rented property then   rent agreement
6. Photo Signature of Proprietor/ Director/Partner etc.
7. Details of Business (Nature of Business)
8. No of employees at work place
9. Date of Commencement of business
10. Email ID and Mobile no of the assesse

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13 Comments

  1. Heena says:

    I have a doubt about calculation of p.tax on salary….for example my gross salary is 10000/- and after LWP( leave without payment ) and EPF deduct it it 7000/- so it’s liable to pay p.tax???? Plz plz reply me

  2. aman says:

    I am facing issue for April2020 to till date PTRC returns, “no data” is showing after selecting 2020-21, how to file April, May, June, July, Aug, Sept 2020 returns?
    Also there is no revert from Helpdesk.

  3. Akash Rajendra Agarwal says:

    I own a truck which requires ptec.At the time of purchase it has not been paind. Purchase date is Feb 2016.
    Is there any work around for the penalty for the current year

  4. ravindra singhvi says:

    salary for the month of July, paid in month of August.
    In PTRC return it will shows in return period August
    than what will be period in challan and last date of fillin the return

    Please give the clearification

  5. Lalit lohar says:

    In case we are doing registration after 3 year of from the date of liable to registration under PTRC what consequence in that.

  6. Rachna Rane says:

    Hi,
    In the month of May 2020, Employer did not pay salary to the employees as a result, did not pay PTRC to the government too.
    What should be the correct treatment.
    Also is there any circular wherein I can fins any information related to this.
    Is the limit of Rs. 2500/- per annum or 200/- per month.
    Or not paying the salary in one month will reduce the amount to Rs. 2300/- per annum?

  7. CA Rahul Gaikar says:

    Whether person who is director of company which has registered office in Maharashtra requires to be registered under PTEC in Maharashtra?

  8. Sheetal Somani says:

    The PTEC payment needs to be done by 31st March every year, as per the amendment dated 9th July 2019-Section 8 of The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975

    1. DIXIT NOTARIA says:

      Hello

      So the due date for PTEC in Maharashtra for FY 2020-21 will be 31-3-2021 and not 30-6-2020?

      Thanking you in advance

  9. CA Tasneem Attar says:

    For PTEC- Maharashtra state payment due date please refer Amendment to the respective Act dated 9 th July,2019 wherein “PTEC payment shall be paid for each year on or before 31st March of the said year”

    1. DIXIT NOTARIA says:

      Hello

      So the due date for PTEC in Maharashtra for FY 2020-21 will be 31-3-2021 and not 30-6-2020?

      Thanking you in advance

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