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