Professional Tax is a State tax on professions, trades, callings and employment. In Maharashtra it is levied under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. Under the Constitution, the total Professional Tax payable by a person cannot exceed ₹2,500 per year.
PTEC — Enrolment Certificate
PTEC is for the business or professional itself. Companies, partnership firms, LLPs, proprietors and self-employed professionals (such as consultants, doctors or CAs) enrol under PTEC and pay their own Professional Tax every year.
PTRC — Registration Certificate
PTRC is for employers. If you pay salaries to employees above the exemption limit, you must register under PTRC, deduct Professional Tax from their salaries and deposit it with the State on time.
Do you need both?
Very often, yes. A company with employees typically needs a PTEC for the company and a PTRC to deduct and pay tax on behalf of its employees.
Compliance basics
- Register within the prescribed time after starting business or hiring employees.
- Deduct Professional Tax from salaries as per the applicable slabs.
- Pay and file returns by the due dates for your category.
- Keep records of deductions and payments.
Avoid penalties: Late registration, late payment and late returns attract interest and penalties. A missed PTRC can also delay other approvals that ask for compliance proof.
How Rudolf Group helps
We register your business under PTEC and PTRC, explain the slabs that apply to your employees and can manage the periodic payments and returns along with PF, ESIC and MLWF.