Professional Tax Registration

It is a tax levied by the some of the state governments in India on the income earned by employees on rendering their specific services engaged in a profession or trade. subject to income exceeding the monetary threshold if any.

Professional tax rate– Professional tax being levied by the State Government, is different in different states. Every state has its own laws and regulations to govern professional tax of that state. However, all the states do follow a slab system based on the income to levy professional tax.

Professional tax certificates There are two types of Professional tax certificates which are as follows:

1. PTEC (Professional Tax Enrolments Certificate): This is paid by the business entity, owner or a professional i.e., Private/ Public Limited Company, Sole Proprietor, Director etc.
2. PTRC: (Professional Tax Registration Certificate): Government or Non- Government employer deducts the tax from the employee’s wages and deposit the same to the government.

The Below-mentioned class of persons is liable for Professional tax. However, it depends on the state where it is applicable-

• The persons like HUF, firm, Limited Liability Partnership (LLP), Company, Corporations, other corporate bodies, any societies, Club or Association is considered as a taxable person under Professional Tax. Or every branch of the above said persons are treated as the separate person for the purpose of registration with the Professional Tax Department and Tax payments.
• Legal Practitioners including Solicitors and Notaries, Medical Representatives including Medical Consultants and Dentists, Doctors, Chartered Accountant, Company Secretaries, Management Consultants, Architectures, Engineers, Tax Consultants, Insurance Agents, and Surveyors all kind of Contractors etc.
• Persons acting as Directors of the Companies, the Partner of a firm or designated partner and Partners of LLP are also considered as Professionals. Hence, to comply with the provisions of Professional Tax law the Directors and Partners are required to obtain registration under PT Act, within 30 days of their appointment.
• The professional tax on salaried individuals in applicable state is to be collected by the employer after making the appropriate deduction from the salary of the employees and to deposit with the professional tax department. The employer needs to obtain registration with professional tax department within 30 days of its applicability.

1. For Individual / Proprietorship: 

• Electricity Bill / Rent Agreement: Electricity Bill in case of owned shop or business premises, for any other case Rent Agreement is required.
• PAN Card of Individual.
• Aadhar Card of Individual.
• 2 Passport size photos of proprietor.
• Signature on Bla/nk Paper for record and verification.
• Cancelled cheque / Bank Statement

2. For Company/ Limited Liability Partnership (LLP)

• Certificate of Incorporation, MOA & AOA / LLP Agreement.
• Premises proof of Company and an NOC from the owner of such premises.
• Bank Account of Company: Cancelled cheque and bank statement.
• PAN card of Company/LLP duly attested by directors of the company
• List of Directors, passport size Photographs of all Directors, Id, and address proof.
• Authorisation Letter by signatories.
• Board Resolution pass for this purpose in case of company and consent of partner in case of LLP

1. The states where professional tax applicable in India are Andhra Pradesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Punjab, Sikkim Tamil Nadu, Telangana, Tripura, West Bengal.

1. If any person who is liable for registration fails to register will be liable for following consequences

   • Fails to Get Registration
     • He will be liable to a penalty for the period during which he remains unregistered.
   • Fails to Deposit to the Government/ Late Deposition
     • He will be liable to a penalty for the period during which he remains unregistered.
   • Non-Deposition of Amount.
   1. • The officials have power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover, they can attach his bank account also. In serious cases, prosecution case also can be filed.