written by | May 30, 2022

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Table of content


Table of content

What is PTEC and PTRC and Why is it Required for Business?

PTEC stands for professional tax enrolment certificate, while PTRC stands for a professional tax registration certificate. A corporation usually requires both to conduct business. PTRC and PTEC registration procedures are similar, even though they differ per state. 

Both are unique certificates that Indian firms regularly request.

Did you know?

Foreign employees are not subject to the professional tax. The registration certificate is not available to Indians working for the Foreign Office or consultants.

What Are PTEC and PTRC?

A Tax Application for Registration is required to operate a business in Mumbai and many other states. A company business can pay professional taxes, including its specialist or proprietor, via PTEC. To put it another way, PTEC allows firms to pay professional duties in place of its executives and people like professionals and self-employed people. The PTRC, on the other side, allows companies to deduct & remit specialist taxes through their employees' salaries to the government.

When relevant, a regular entity must submit its own trained tax and professional tax for all its workers using PTRC and PTEC. If the business or LLP has few or no payees, it will only have to pay PTEC rather than PTRC, but also remuneration for managers and associates.

Required Documents

i) Most recent electricity bill for a primary place of business 

ii) Most recent photograph 

iii) Signature copy that is scanned

iv) Cancelled check

v) Address evidence for major place of business

Also Read: A Step-by-Step Guide to GST Registration Procedure in India

Registration Process for PTEC and PTRC

  • Go to www.mahagov.in. Click "e-Registration" on the home page. 

  • After selecting "New Registration That is under Different Acts," the "Instructions" page will appear.

  • When you click "next," the "PAN/TAN Verification" information page will appear. 
  • After that, you'll get the "Temporary Profile Creation" page. 
  • Confirm the correct PAN, email address, and contact information to create a temporary profile. 

  • User-id and passcode can be used to apply online using PAN after successfully building a valid short-term profile for up to 90 days.
  • The applicant will use temporary credentials to log in. 

  • After successfully logging in, your vendor will select "Existing Customers" from the menu selections. 
  • The "Act selection" screen will appear, allowing you to pick which type of act registration is required. Dealers can use this page to register many acts in one application. 

  • Choose PTRC or PTEC Act in the checkboxes in the column "Act for Registration." The e-application for the Professional Act (Form I/II) would be accessible. 

You must fill out the page by filling in relevant fields or selecting from the drop-down selections. Required fields are highlighted with an asterisk (*). It would help if you had a PAN/TAN before applying for registration, and the application's constitution should be chosen based on the PAN.

When all acts are selected, the forms will display in the following manner: CST, MVAT, Luxury, SCP, TTRC, ET, and PTEC. After completing and submitting the current form, that applicant will be needed to enter- select information from the unified field on other forms. The registration will be denied if the online registration is missing any required papers. If some of the sections' data is lacking, the applicant will be invited to fill in the gaps. 

All responses are delivered to the temporary profile's email address and phone number. The applicant must provide the correct information in the 'Position of the Signatories' section of the application.

As per the dealer's constitution, the request must be signed: Each signatory, manager, or approved person should digitally give a signature by appending the signature to the proper area while submitting the petition and submitting the necessary papers. 

After completing the form, click the "Submit" button. After submitting the form properly, you will be able to download an acknowledgement using the "Application Reference Number" from the confirmation page. The filled-out initial application will be emailed to you with a PDF attachment.

Before submitting the form, the MSTD portal would do preliminary verification, including actual-time PAN verification through NSDL, Aadhaar No. confirmation with UIDAI, IGR information with IGR portal, and Electricity bill energy providers with related services providers such as Reliance Energy.

On the department's official website, you may find the Maharashtra State Sales tax on Professional, Arts, Vocation, and Employment Act, 1975, with rules, notifications, forms, and trade circulars.

Also Read: Format and Requirements of Consent Letter For GST Registration

Certificate of Registration 

Issued after verification, the registering body will generate a TIN if the request is correct and full in all respects, together with any relevant papers. If the application is qualified for registration, the date of applying will be used to determine the effective date of the registration certificates, which will be provided through email and post. Applicants will not need to visit MSTD offices to obtain registration certificates because they will be made available on the website in downloaded format with the necessary certifying authority's electronic signatures.

    

Professional Tax Registration: A Contrast Between PTEC and PTRC 

Professional Tax Registration is abbreviated as PTEC. In India, a certificate of professional tax enrollment is required. An employer must get a certificate to subtract and submit professional tax from their employees' pay. Professionals such as doctors, CAs, advocates, and architects can obtain a certificate to pay their professional tax. Professionals are paying their taxes, and each state has its registration process. However, for membership, most websites require an electronic form to be uploaded. 

Conclusion

Required documentation for registration acceptance of a completed online form and a photocopy of the initial proposal PAN card photocopy with self-attestation evidence of corporate structure, proof of partnership, directorship, and sole proprietor, proof of business address (address proof), cancelled blank cheque, shop, and establishment certificate and so on. PTEC and PAN numbers for all owners or directors. The number of employees is recorded, as well as their pay stubs. 

PTEC and PTRC are similar to income taxes in that the state legislature collects them. It's a tax on all types of careers, trades, and employment levied depending on the income generated by such professions, trades, and jobs. It is imposed on employees, business owners, freelancers, and professionals.
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FAQs

Q: Are there any other fees related to the PTRC registration process?

Ans:

All professional fees, as well as a comfort charge, are included in the plan fee. The relevant government charges vary by state because professional taxation is a state-level tax. 

Government fees will be determined on an individual basis.

Q: Can one make payment of the professional tax liability under PTEC and PTRC in one lump sum?

Ans:

In some states, the concept of a composition scheme exists. For example, in Mumbai, the government introduced a system under which anyone who owes the government ₹ 2,500 per month can make a lump sum payment of ₹ 10,000 and their 5-year payment obligation erased.

Q: Who is in charge of deducting taxes and depositing them to the government?

Ans:

In the context of PTEC and PTRC, in self-employed individuals, the taxes are paid by the person himself. In the event of employees, the employer bears responsibility.

Q: What is the difference between a registration certificate and an enrolment certificate?

Ans:

When a payment with one or more workers exceeds ₹ 5,000 (this limitation is for Maharashtra), every employer in certain states is obligated to withhold taxes from the payment and deposit them with the state government. A registration certificate is necessary for the entity. When a person works in a profession for two or more employers and earns more than ₹ 5,000 in salary or wages, the employer does not deduct professional tax. The individual must obtain an enrolment certificate from the government.

Q: When is the professional tax imposed, and what is it?

Ans:

A professional tax is a government tax on earnings generated by a professional, trade, vocation, or job. Individuals who are self-employed or hired by a firm are taxed using a slab based on their income. Currently, the maximum amount levied is ₹ 2,500.

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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.