Professional Tax Registration

What is Professional Tax?

Professional Tax is a form of Tax, which the State Governments are collecting from professionally occupied personals and business entities. A person earning income from salary or professions such as Lawyers, Company Secretaries, Charted Accountants, etc. are liable to pay this tax. Any employers, professionals, traders, etc. have to register for Professional Tax. The Local Administrative Body (Panchayat, Municipality, Corporation, etc.) are handling the collection of Professional Tax.

The Professional Tax is deducted from the salary of employee, which is eligible for deduction from computation of Income Tax. The registration for Professional Tax should have to obtain from the Local Administrative Body by the Employer or Business Owner. As Professional Tax is a State based registration, the method of registration and rate of tax is different from state to state. Normally there are two types of registrations – PTEC and PTRC.PTRC stands for Professional Tax Registration Certificate, and PTEC stands for Professional Tax Enrollment Certificate. A business usually requires both to conduct business.

₹ 849 All Inclusive

Benefits of Professional Tax Registration

It is a Mandatory Compliance

Helps your company/business runs actively and compliant with state laws.

Escape from the Penalties

Being a Professional Tax payer, employee and employer are secured from heavy penalties.

Nominal Tax Structure

The Professional Tax in all the states is nominal and they are structured accordingly to salary range, hence the burden on the tax payers is nominal.

Register for Professional Tax Online

Documents required for Professional Tax Registration

ID proof A self-attested copy of ID proof of Proprietor/ Partner/ Director
PAN Card PAN Card of the proprietor/firm
Address Proof Self-attested copy of address proof of Proprietor/ Partner/ Director. Shop and Establishment Certificate (if any)
Photographs 3 copy of passport size photograph of the Proprietor/ Partner/ Director
Incorporation Documents MoA – AoA of Company, Partnership Deed/ LLP Agreement, etc. along with the registration certificate, if any

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Register for Professional Tax in 3 Easy Steps

Fill up the registration form
Select any package suits your requirement
Fill up the form which will take less than 10 minutes
Make payment through secure payment gateway.
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Provide details & upload documents required for Professional Tax registration
Review of Documents and Information provided
Preparation and Submission of Application
Government Processing Time
Allocation of Registration Certificate
Your Business is Registered for Professional Tax
All it takes 10 – 15 Working Days
*Subjected to Government Processing Time

The Process of Registering for Professional Tax

Day 1 – 2
Collection of Information
Collection of required documents (Scanned copies)
Review of documents and information provided
Day 3 – 5
Preparation of Application
Submission of Application for Professional Tax Registration
Day 6 – 15
Government Processing Time
Approval of Application
Issue of Professional Tax Registration Certificate
*Subjected to Government Processing Time

Enquiry

FAQ

Who shall obtain the Professional Tax Registration?

The professional tax registration should be obtained by Business owner or Employer. The employer can deduct professional tax from the salaries of the staffs based on the tax slab and pay the same to the Government monthly or quarterly as applicable in the state of business.

What is PTEC?

Professional Tax Enrolment Certificate (PTEC), this registration is obtained for the payment of taxes by the employers.

What is the Registration Certificate?

The employers are required to obtain the registration when employees are appointed. This makes the employer eligible to deduct the professional tax from his employee’s salaries. Registration should be obtained within the 30 days of employing staff.

In Which States is Professional Tax applicable?

The following state governments levies Professional Tax; Kerala, Karnataka,Maharashtra, Punjab, Telangana, Bihar, West Bengal, Sikkim, Andhra Pradesh, Tamil Nadu, Gujarat, Assam, Meghalaya, Orissa, Tripura and Madhya Pradesh.

What is the maximum amount of Professional Tax to be paid?

The maximum amount payable per annum towards the professional tax is Rs. 2,500. The professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from the employee’s income every month.

Whether the separate application is required for additional place of work?

Yes, if you have more than one place of work, you have to make a separate application for professional tax registration to the concerned authority.

What are the penalties of non-compliance of Professional tax payment?

For delays in obtaining Registration Certificate, a penalty of Rs. 5/- per day is levied. In case of non/late payment of profession tax, the penalty will amount to 10% of the amount of tax. In case of late filing of returns, a penalty of Rs. 300 per return will be imposed.

What are the due dates to file and pay Professional Tax?

The due date for the payment of Profession Tax is 30th June for the employees enrolled before 31st May of the year. The people enrolled after 31st May of a year are requested to pay Profession Tax within one month from the date of enrolment. Employers are requested to file monthly return along with due payment of tax.

Whether Shop & Establishment registration is also required for this registration?

In cities like Ahmedabad, both the registration must be obtained simultaneously. In a few places, Shop & establishment registration is a requirement for this application. Hence, it depends on the law of where the jurisdiction of the premise is situated.