Professional Tax Registration

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Guide to Professional Tax (PT) Registration in India! Introduction, Cost, Documents and the Process!

About Professional tax (PT) – It’s Meaning Professional tax is levied by the state government on the Profession, Trade, and Employment. The following states impose this tax: Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Tamil Nadu, Tripura, and West Bengal. Every business shall apply for professional tax registration in the prescribed form with prescribed authority. Professional tax rates vary from state to state. For e.g, in Karnataka, if an employee’s wages is more than Rs.24,999 per month then Rs.200 has to be deducted towards professional tax. It is the responsibility of the employer to deduct professional tax from the employee’s salary and pay to the department within 20th of every month and PT filings have to be done. The amount of professional tax paid during the year is allowed as a Deduction under the Income Tax Act.

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When is Professional Tax registration required?

  • Professional tax enrollment certificate (PTEC) is mandatory in the case of professionals/ business and has to be applied within 30 days of commencement of practice/business.
  • Professional tax registration certificate (PTRC) is mandatory within 30 days of employing staff in the business.

 

Professional Tax Registration – The Procedure and Process

In most states, Professional tax registration is an online process. In Karnataka, an online application has to be submitted in the prescribed format and all the documents required as per the type of entity the registration is sought for should be submitted in person at the department.

 

Timeline – How long does it take to register Professional Tax in India

 

If everything is in order, it may take anywhere between 8 to 10 business days for registering Professional tax. This timeline is further subject to Government processing, approval time, public holidays, etc.

  • Professional tax enrollment certificate (PTEC) is mandatory in the case of professionals/ business and has to be applied within 30 days of commencement of practice/business.
  • Professional tax registration certificate (PTRC) is mandatory within 30 days of employing staff in the business.

Professional Tax Registration – The Procedure and Process

In most states, Professional tax registration is an online process. In Karnataka, an online application has to be submitted in the prescribed format and all the documents required as per the type of entity the registration is sought for should be submitted in person at the department.

 

Timeline – How long does it take to register Professional Tax in India

If everything is in order, it may take anywhere between 8 to 10 business days for registering Professional tax. This timeline is further subject to Government processing, approval time, public holidays, etc.

Documents required for Professional tax registration Registration:

Document

Proprietorship

Partnership

OPC

LLP

Pvt Ltd

PAN card of promoter/s

PAN card of the company/firm

Aadhar card of promoter/s

Photograph of promoter/s

Registered office documents such as Rental agreement/Sale deed/Latest tax paid receipt

Utility bill

Current account Bank statement/Cancelled cheque

Savings account Bank statement/Cancelled cheque

Cost for Professional Tax Enrollment Certificate (PTEC) and Professional Tax Registration Certificate (PTRC) Registration

Fees for PT registration varies from State to State as professional tax is levied by the state. The Government fees for Professional tax enrollment certificate (PTEC) are Rs.2500 in Karnataka and our professional fees are Rs.2000. Once registered under PTEC, Rs.2500 has to be paid every year before 30th of April as an advance payment for that particular financial year. There are no Government fees for Professional tax registration certificate (PTRC) and our professional fees are Rs.3000.

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