What Is The Process Of Applying For A Professional Tax Registration Certificate(PTRC) In India?
A professional tax registration certificate, also known as PTRC is the type of tax levied on all working professionals, whether in the profession, trade, or employment. PTRC is one of the types of professional tax certificates that are generally levied based on the income of an employee to an employer, individual, or entity. Regardless of the entity type, the employer deducts the tax from the employee’s salary or wages & deposits it with the government adhering to the PTRC applicability.
It is implied by the state government under clause (2) of Article 276 of the constitution of India and is deducted by the employer from employees’ salaries every month. As a salaried employee, every individual is liable to pay tax on the income. But professional tax is not the same & differs from income tax. It is the tax levied as Professional tax and is imposed by state governments for the infrastructure it provides you.
PRTC Applicability & Eligibility
Applicability of PRTC and the certificate is to be obtained by every working person owning an entity or authority & is eligible for a professional tax deduction of any employee who is bound to get a monthly salary. Companies, firms, corporations, LLPs, HUF, Associations & Societies along with working professionals like legal practitioners, medical representatives, and every other professional considered liable to professional Tax are bound to get the certificate as they are eligible for PRTC applicability.
Procedure To Apply For A Professional Tax Registration Certificate
While applying for a professional tax registration certificate, the applicant must have
ID Proof- A self-attested copy of ID proof of the Proprietor, Partner, or Director
Address Proof- Self-attested address proof of the proprietor, partner, or director. Establishment certificate if any.
Photographs- 2 passport size photographs of proprietor or director or partner
Incorporation Documents- MoA, AoA of the company, the partnership deed or LLP Agreement along with the registration certificate, if any.
Scanned Copy of Signature
Canceled Cheque
Procedure:
Log on to the official website of the state government
Click on “e-Registration on the home page”
Click on the “New Registration under various Acts”
“Instructions”– “Next” — “PAN/TAN Validation”
A “Temporary profile creation” page will appear, fill in the details and create a profile.
After successful creation, use the credentials and log in with the “Existing Users” option. The “Act Selection” page will appear on the screen, select PRTC Act from the checkboxes provided in “Acts for Registration”
An e-application (Form 1/2) under the professional act will appear on the screen.
Fill in the details, verify & submit
In case of any error or incomplete information, the form will not be submitted and the screen will be prompted with a message regarding the missing data.
The applicant should select the “status of signatory” and provide all relevant details.
It is important to digitally sign the form or to upload the signature at the relevant place/places while uploading the form & submitting documents.
Click the submit button after completing the process and you will receive an “application reference number” for download on the confirmation page.
IT is mandatory to complete the PTRC registration applicability within 30 days of employing the first staff in the business. Any delay in obtaining the PTRC will be charged with a penalty of Rs. 5 per day from the due date.
Since the term professional tax is directed towards the deduction of the amount from the employee’s salary & income, it is deducted by the employer from the source. With the difference in the slab, the amount to be deducted changes and has particular slabs for calculation. The lower limit is 7500, an amount exceeding the minimum salary of 7500 makes the employee eligible for a professional tax deduction.
Having a PTRC certificate provides good benefits like minimal restrictions, and no penalty, and also provides deduction claims. Since the process is a bit difficult, it is easier to get it done by a reliable chartered accountant in Mumbai. Shah and Doshi, a Chartered Accountants firm in Mumbai with years of experience in the field makes the process of applying for a PTRC certificate easier along with added benefits like on-time services, professional help, and No penalties throughout the process.