30 Oct

Profession Tax PTEC PTRC

Profession Tax - PTEC & PTRC

Nowadays most of the not registered businessmen, professionals, traders, retailers & Service Providers have received notice from the office of the State Tax Officer of Goods & Service Tax, Profession Tax Department & they do not understand what this is?

Below is that the answer to those notices

PTEC: - Professional Tax Enrolment Certificate.

PTRC: - Professional Tax Registration Certificate

Profession tax is the tax levied and collected by the state governments in India. It is a direct tax. An individual earning an income from salary or anyone practising a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. Business owners, working individuals, merchants and people carrying out various occupations come under the purview of this tax. Different states have different rates and methods of collection. In India, professional tax is obligatory each month. However, not all states impose this tax. The states which impose professional tax are Punjab, Uttar Pradesh, Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, Jharkhand and Sikkim.

Who liable to pay tax

PTEC:- Every businessman, Professional Like, CA, Doctor, Lawyer, Architect, Traders, Retailers, Service Providers, GST number holder, Private Limited Company, Its Directors, Limited Liability Company and Its Partners, One Person Company and It Director, Limited company and its director.

Employer (corporate, partnership firms, sole proprietorship etc) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to the monetary threshold if any provided by respective State’s legislation. In such a case, the employer has to register and acquire both a professional tax registration certificate to be able to pay professional tax on his trade/profession and a professional tax enrolment certificate to be able to deduct the tax from his workers and pay. Further, separate registration is also needed for every workplace office depending on several States legislation.

Persons who are carrying on freelancing business with no employees additionally needed to register themselves subject to the monetary threshold if any provided by respective State’s legislation.

PTRC: - Every employer of the Employees falling under the PTRC tax

In the case of employees, an employer is accountable to deduct and pay professional tax to the authorities subject to the monetary threshold if any provided by the respective State’s legislation.


PTEC: - Rs.2500/- per year

PTRC: - Rs.2500/- per year or as per salary slab

Due Date:-

PTEC: - 30th June of Every Year

PTRC: - last date of every month

Penalties for Non-Compliance on Professional Tax Payment

Delays in getting Registration Certificate, a penalty of Rs. 5/- per day. In case of non/late payment of profession tax, penalty will be 10% of the amount of tax. In case of late filing of returns, a penalty of Rs. 1000 per return will be imposed if you filed after due date in 1 month. After 1 month, a penalty of Rs. 2000 will be imposed.

Contact for more details for your PTEC & PTRC registration and compliances.

Santosh Patil





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