What Are The Things You Should Know About Professional Tax Enrollment Certificate(PTEC)?

PTEC full form Professional enrollment certificate is an essential requirement to maintain smooth functioning of the business complying with legalities of respective states. PTEC applicability is a tax levied on companies as entities and their authority’s remuneration. Acquiring a Professional tax enrollment certificate allows paying professional tax of a business entity along with the professional tax of the owner or professional of the business. In the case of a professional individual or sole proprietor, in case he does not have any employees, it is mandatory to have registered under PTEC. PTEC registration of a proprietor or company allows the entity to pay the companies & their director’s professional tax.

PTEC Registration Applicability & Liability

With respect to the amendments in the profession tax act 1975, any person- natural & legal, registered under MGST Act is liable & eligible to enroll for a professional tax enrollment certificate and pay the tax due per annum except partnership firm & HUFs. However, each partner of the partnership firm and each co-parcener of the HUF are liable for the enrolment as mentioned in schedule 1. PTEC is essential for all the businesses & professionals for GST as well. Failing PTEC registration while registered under GST may cause problems and bring notice for your business regarding the registration.

An Important Class Of PTEC Payables

All types of Legal Practitioners, Medical Practitioners including consultants, technical & professional consultants, engineers and architects, chartered accountants, tax consultants, Agents, consultants, commission agents, brokers, and all types of contractors, Directors, and dealers registered under the Maharashtra value-added tax act, companies registered under the companies act 2013 involved in any kind of profession, trade or business.

If failed to fulfill the PTEC registration applicability and acquire the certificate, the taxpayer will be levied with a penalty

The Time Limit For PTEC Enrolment

The application for the Professional tax enrolment certificate shall be made within 30 days from the commencement of profession, business, trade, calling or employment once acquired S and E license, certificate of incorporation, service tax RC, Sales tax RC, etc.
As it is mandatory for every company, individual & professional to register for a professional tax enrolment certificate, once the company acquires the PTEC, the company is liable to file its PTEC return every year on an annual basis.

The amount paid for the professional tax enrolment certificate during the year is allowed as a “deduction” under the Income Tax Act.

Documents Required For A PTEC Registration
Pan card
Aadhar card copy
Canceled cheque
Passport size photo of the proprietor or directed or partner, etc
Electricity bill of the registered office-place of business operations in case of rented property
Photo signature of proprietor or director or partner
Details of the business-Nature, type, work & operations
No of the employees employed at the workplace
Date of commencement
Email ID & Mobile number

Any person above the age of 65 years is exempted from PTEC enrolment and is not liable for the tax payment.

Procedure
Log on to the official website of the state government
Click on ‘e-registration’ on the home page
Click on “new registration under various acts” – “instructions” – go through the details, assemble the documents & click “next: a “PAN/TAN Validation” page will appear.
Create the temporary profile by filling in all the details.
Now login with the credentials. Click on “existing users” – “act selection” – Select PTRC/PTEC Act from the field Acts for Registration.
Fill in the details & hit submit. You will receive an “application reference number” as an acknowledgment of the submission & application.

Acquiring PTEC benefits the business with minimal restrictions, no penalty, easy registration, & deduction claims. However, as much as it is important to acquire the PTEC registration, it is also important to fill in the details in a systematic manner and in an accurate form to avoid any uncertainty. Apply for the PTEC at your convenience, Shah & Doshi, chartered accountants in Mumbai leverage their years of experience and expertise in the field and make the process hassle-free for you.