As per the amendments in the Profession Tax Act 1975, a person (natural / legal) registered under MGST Act is liable to enroll for Profession Tax Enrollment Certificate (PT-EC) and pay Rs.2500 per annum. In addition, if the business is having any employee whose monthly salary is above Rs. 7500/- is also required to obtain Profession Tax Registration Certificate (PT-RC) and pay tax after deducting the same from the employee’s salary as per the provisions of law. All tax payers who are register in GST has received Notice for Compliance and Registration in PTRC / PTEC.
Profession Tax Enrolment Certificate (PTEC):
Under Section 3(2) of Maharashtra Profession tax, every person excluding partnership firms and HUF engaged actively or otherwise under one or other classes of Act is liable to pay tax to the state government. The professional tax of the business entity ( Private ltd, public ltd, OPO, etc) and also of the owner or professional ( sole proprietor, partner, director, etc) are permitted to pay professional tax under PTEC.
Profession Tax Registration Certificate (PTRC):
Persons earning salary or wages are also covered. The employer (government or non-government) are required to deduct professional tax at prescribed rates from the employee’s salary or wages and deposit the same to the respective state government. It is employer’s liability to pay tax even if fails to deduct from the wages or salaries of the employees.
A fully functional business entity commonly requires both to conduct its business operations.
Following is the process for PTRC and PTEC.
The following are the list of documents and details required for registration of PTRC and PTEC:
- Pan of the assessee
- Aadhaar Card copy
- Cancelled Cheque
- Passport size photo
- Latest electricity bill of the register office/ place of business in case of rented property then rent agreement
- Photo Signature
- Details of Business
- No of employees at work place
- Date of Commencement of business
- Email ID and Mobile no of the assesse
The Following is the procedure for registration of PTRC and PTEC certificate:
- Go to https://www.mahagst.gov.in/en
- Under the Other act and registration tab Select: New Dealer Registration
- Now select New registration under various acts (for new dealers) TAB a Detailed guidelines regarding application process flow, list of required documents are provided in the instruction sheet.
- Click “next” a check box will appear select the “New dealer” Checkbox and then click on next button “PAN/TAN Validation” information page will appear
- Fill the PAN no enter captcha and proceed further
- After that “Temporary Profile creation” page will appear. To create Temporary profile by giving valid PAN, e-mail Id and mobile number. After successfully creation of temporary profile it will valid till 90 days for applying the online registration with PAN is user-id and password
- Applicant will login by using credentials as temporary profile. After successful login, Dealer will select “Existing Users” option from menu option. After that “Act selection” page will appear for which type of Act registration is required. In this page dealer can select multiple Acts for registration in single application.
- Select PTRC/PTEC Act from the check boxes provided in the field “Acts for Registration”.
- E-application (Form I/II) under Professional Act will open.
- Information in the form should be completely filled either by entering in the relevant fields or selecting from the drop down lists.
- Fields marked with '*' are mandatory fields.
- PAN/TAN is a mandatory requirement before applying for registration
- Selection of constitution in the form should be as per the PAN.
- In case, a dealer has opted for all Acts then the forms will be displayed in the sequence MVAT, CST, Luxury, PTRC, SCPT, ET and lastly PTEC.
- Once the displayed form is filled completely and submitted, the data of unified fields of other forms will be needed to entered/selected by the applicant across all such forms.
- The online application form will not be accepted if it is not complete in all respects and the required documents are not submitted along with the application.
- In case the data in any of the fields is not entered, then the applicant would get error message and would be prompted to enter the said data.
- All communication will be made on the email Id and mobile given in the temporary profile.
- The applicant should select the ‘Status of the signatory” to the application and provide relevant details. Depending upon the constitution of the dealer, the application should be signed:
- The signatory, manager/authorized person(s) are required to sign digitally or by uploading the signature at relevant place/places while filing the application and submit the relevant documents.
- After filing the application Form, click on “Submit” button. After successful submission of Form, an acknowledgment bearing “Application Reference Number” will be available for download on confirmation page. The submitted application form which will be communicated via e-mail as attached PDF Format.
- The MSTD portal shall carry out preliminary verification/validation, including real-time PAN validation with NSDL portal, Aadhaar No. validation with UIDAI portal, IGR details with IGR portal and Electricity bill utilities with respective service providers such as Tata Power, MSEB, BEST, Reliance Energy and Toronto and issuance of TIN by MSTD Department through inter-portal connectivity before submission of the application form
Grant of Registration Certificate
- If the application is correct and complete in all respect along with relevant documents then Registering Authority will generate TIN after verification. In case the application is eligible for granting registration, then the date of uploading the application shall be considered as the date of application for the purpose of determining the effective date of RC
- Registration certificates will be sent via email and post. The applicants need not visit MSTD offices for procurement of Registration Certificates as the same would be made available on the portal in downloadable format with digital signature of appropriate certifying authority.
Rejection of the Application
- If the application is found defective, then defect memo will be issued and e-mail to applicant. The applicant needs to rectify the defects within 30 days.
- In case the applicant rectifies the defects within 30 days, the Officer will verify and if found satisfactory then TIN would be generated. In this case the date of first application would be taken for the purpose of determining the effective date of RC.
- If the applicant does not rectify the defects shown in defect memo within 30 days, then the application shall be rejected and the temporary profile will be de-activated after 90 days.
Exemptions from Professional Tax:
- Person having completed age of 65 years (w.e.f 1.04.1995)
- For salary / wages up to Rs 10,000 pm in case of female employees is exempted (w.e.f 1.4.2015).
- Under the Mahila Pradhan Kshetriya Bachat Yojana of Directorate of Small Savings women exclusively engaged as agents.
- Mathadi Kamgar (casual workers) ( Cir. 12T dated 3.08.2011).
- In the textile industry Badli workers.
- Members of armed forces of Union serving in the state.
- Any person and parents or guardians of such persons who is suffering from mental retardation specified in the rules and certified by a psychiatrist working in a government hospital.
- Partnership firms and HUF.
- Any person suffering from a permanent physical disability (including blindness) specified in the rules, certified by a physician, a surgeon or an oculist, working in a Government hospital, which has the effect of reducing considerably such individual’s capacity for normal working or engaging in a gainful employment or occupation and also his parents or guardians.
- Parents and guardians of a child suffering from a physical disability mentioned in the above point (9).
- Armed members of Central Reserve Police Force to whom the Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 applies and the armed members of Border Security Force to whom the Border Security Force Act, 1968 applies serving in the State of Maharashtra.
- Up to one year of standing in the profession, professionals like Chartered Accountants, Medical Practitioners, Tax Consultants, Legal Practitioners and etc are not liable.
Every Registered Employer needs to make payment in Challan Form No. MTR -6 and furnish return in Form III-B (electronically return). In case of failure to upload return within the due dates, you may attract penalty.
If payment of tax has been made within the due date, a grace period of 10 days for uploading e-return provided. In respect of all those returns filed after due date mandatory late fees is payable of Rs 1000.
An employer (PTRC) can file revised return within period of 6 months from the end of the year.
If tax liability during the previous year or part thereof was less than Rs 1,00,000
Annual return on or before 31st March of the year ( for salary paid for the months from 1st March (of immediately preceding year ) to 28th February ( of current year))
Rs 1 Lakh or more
Monthly Returns on or before the last day of the month (covering salary paid for the immediately preceding month).
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. The first return in such cases will be for the month in which certificate of registration granted ( covering salary paid for the period commencing from ate of liability till the last date of preceding month in which certificate of registration granted), subsequently monthly returns as per due dates till the end of financial year.
Payment of Taxes:
Before filing the return every registered employer (PTRC TIN) shall pay tax as per due dates.
Within one month from the date of enrolment in the first year, every enrolled person (PTEC TIN) shall pay the tax and thereafter by 30th June of every year.
From 1st January 2012, facility of e-payment of profession tax has been made available.
W.e.f 01st April 2018 One time payment of Tax Scheme:
Under section 8(3) of the Act, PTEC holders can avail the benefit of the above scheme. According to scheme one can discharge his/ her liability for minimum of 3 years to maximum of 35 years by making advance payment as prescribed in the notification.
All PTEC holders paid prior to 2018-19 or already paid for 5 years can also opt for this scheme post completion of 5 years.
No refund is available once amount is paid under OTPT scheme.
For Non- Payment of Tax Interest and Penalty:
If an enrolled registered employer / person will be liable to pay interest as follows of the tax payable for each month for which the tax remains unpaid.
1.25% per month of default.
After recording reasons, the commissioner is empowered to reduce/ waive this interest in respect of any period.
For any query you can write to firstname.lastname@example.org. Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action