PTEC and PTRC: Registration Process & Benefits

Professional Tax Enrollment Certificate and Professional Tax Registration Certificate basically termed shortly as PTEC and PTRC are certifications that are required to conduct any kind of business in different states of India which are namely Punjab, Uttar Pradesh, Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, Jharkhand and Sikkim.

The registration process and regulation of both PTEC and PTRC differs from state to state. A legal entity needs to have both the certifications to conduct a business. The basic function of a PTRC is that it allows an employer to deduct professional tax from its employees’ salary and deposit for the same. PTEC on the other hand is where the employer has to pay its professional tax as well as all of its employees according to the law and both are submitted to the Commercial Taxes Department of State Government.

In some cases, where the company does not have any employees who are paid salaries, they only require a PTEC and not a PTRC. This is applicable for professional practitioners such as Doctors, Advocates, Chartered Accountants and Architects, as these professionals have their own registered practices and may not have employees working for them who meet the criteria of Professional Tax.

What is PTEC (Professional Tax Enrollment Certificate)?

PTEC stands for Professional Tax Enrollment Certificate. It is a registration obtained by individuals (like professionals, freelancers, and self-employed persons) and entities (like companies, partnerships, LLPs, etc.) who are liable to pay Professional Tax in a state. The tax is levied on individuals engaged in any profession, trade, or calling under the applicable State’s Professional Tax Act.

Purpose:
PTEC allows a person or business to pay professional tax directly to the state government for conducting professional activities in that state.

Applicability:

• Individuals like doctors, chartered accountants, architects, freelancers, etc.
• Business entities that are not employing others (if they are employers too, PTRC will be required in addition).

PTRC (Professional Tax Registration Certificate)

Definition:
PTRC stands for Professional Tax Registration Certificate. It is a certificate obtained by employers who are responsible for deducting and depositing professional tax from their employees’ salaries to the state government.

Purpose:
PTRC is mandatory for every employer who has employees working under them and earning a salary above the professional tax exemption limit as specified by the state.

Applicability:

• Companies, firms, LLPs, or any entity having employees on payroll.
• Applicable if the salary of employees exceeds the minimum threshold limit set by the respective state’s Professional Tax Act.

Here’s a complete and easy-to-understand guide on how to apply for PTEC (Professional Tax Enrollment Certificate) and PTRC (Professional Tax Registration Certificate) in India, especially for businesses and professionals operating in states like Maharashtra, where it is mandatory.

What Are PTEC and PTRC?

Who Should Apply?

Apply for PTEC if you are:

• A professional (doctor, lawyer, CA, etc.)
• A freelancer or consultant
• A proprietor of a business
• A director/partner not drawing salary but holding a position

Apply for PTRC if you:

• Run a business with employees
• Are deducting professional tax from employees’ salaries
• Are a company or LLP paying directors and staff

How to Apply for PTEC & PTRC Online (in Maharashtra)

In Maharashtra, the application is done via the Mahagst Portal:
 

Step-by-Step Process:

Step 1: Visit the Official Portal

Step 2: Click on “New Registration” and choose “e-Registration” and select PTEC or PTRC, or both, based on your requirement.

Step 3: Fill the Application Form

You’ll be asked to enter:

• PAN (Mandatory)
• Aadhaar (for individuals)
• Business details (name, type, nature, address)
• Details of the proprietor, partners, or directors
• Employee count and salary details (for PTRC)

Step 4: Upload Required Documents

You may need to upload:

• PAN Card (self-attested)
• Aadhaar Card
• Passport-size photo
• Business proof (Electricity bill/Shop act license)
• Cancelled cheque
• Address proof

Step 5: Verify & Submit

• Check all details
• Submit the form with e-signature or digital signature

Step 6: Acknowledgment & Certificate Generation

• After submission, an acknowledgment will be generated.
• On verification, the PTEC/PTRC number is issued, usually within 1–2 working days.

Documents Required for PTEC and PTRC Registration

Professional taxes might be different according to the states and their tax slabs. Here some of them are mentioned.

Professional Tax Rates (Maharashtra)

Professional Tax Rates (Kolkata)

For individuals with PTEC:

Flat Rs.2,500 annually for professionals and proprietors.

Due Dates

For PTRC due dates-- Monthly return by 31st of the next month

For PTEC due dates-- Annual payment by 30th June each year

Benefits of Registration

• Complies with state laws
• Avoids penalties and legal notices
• Builds business credibility
• Enables smooth payroll and tax handling

Penalty for Non-Compliance

• Rs.5/day for late filing
• Interest up to 1.25% per month on unpaid tax
• Penalty up to Rs.1,000 for failure to obtain registration

How Online Legal India Can Help Here?

At Online Legal India, we assist with:

• End-to-end PTEC & PTRC registration
• Proper documentation and submission
• On-time follow-ups and certification
• Expert advice on compliance and return filing

We simplify the process so you can stay focused on running your business without worrying about tax penalties.

How PTEC and PTRC Are Granted: Step-by-Step Process

 1. Filing an Online Application 

Both PTEC and PTRC registrations are granted online through the respective State Government's GST or Profession Tax portal. In Maharashtra, it’s done through the Mahagst Portal.

You must fill in:

• PAN details
• Aadhaar (for individuals)
• Business or professional details
• Employee details (for PTRC)

2. Document Upload

After entering the details, you’ll need to upload scanned copies of supporting documents, which may include:

• PAN and Aadhaar
• Proof of address
• Proof of business (Shop Act License, electricity bill, etc.)
• Cancelled cheque
• Photo of applicant
• Salary details of employees (for PTRC)

3. Submission and Verification

Once the form is submitted:

• It is assigned an Acknowledgment Number.
• The application is sent for e-verification by the State Tax Officer.

4. Grant of Registration (PTEC/PTRC Number)

• If all documents are valid and in order, the certificate is issued within 1–2 working days.
• The applicant receives:
  • PTEC Number (if applied as a professional/proprietor)
  • PTRC Number (if applied as an employer deducting tax from employees)

The certificate can be downloaded online from the portal.

5. No Physical Verification Required (Usually)

• In most states, physical verification is not required unless discrepancies or red flags arise during document scrutiny.

Important Notes:

• PTEC and PTRC can be applied for together if you are both a professional/proprietor and an employer with staff.
• No fees are charged by the government for the application, but professional service providers may charge facilitation fees.

What happens if an application for PTEC & PTRC is rejected?

If an application for PTEC (Professional Tax Enrollment Certificate) or PTRC (Professional Tax Registration Certificate) is rejected, the following consequences and next steps typically apply:

Consequences of Rejection

1. Inability to Pay or Deduct Professional Tax Legally

• Without PTEC, individuals and businesses cannot legally pay professional tax on their own behalf.
• Without PTRC, employers cannot legally deduct professional tax from employee salaries or deposit it with the government.

2. Non-Compliance Penalties

• Operating without valid PTEC or PTRC may lead to penalties, interest, or fines imposed by the State Tax Department.
• Repeated non-compliance could attract prosecution under the respective State Professional Tax Act.

3. Hindrance in Business Operations

• Rejection might delay business registrations, bank account openings, GST registration, tenders, or any government-related work where PTEC/PTRC is a prerequisite.

4. Compliance Notices

• The Tax Department may issue a show-cause notice for failure to obtain mandatory registration, especially in case of PTRC where employee deduction is involved.

Common Reasons for Rejection

• Incomplete or incorrect application form
• Mismatch in PAN or Aadhaar details
• Incorrect selection of constitution of business (e.g., proprietorship vs. partnership)
• Invalid address proof or business documents
• Non-eligibility under applicable thresholds
• Technical issues during application submission

Steps to Take if Application is Rejected

1. Understand the Rejection Reason

• Check the rejection email or login to the Professional Tax portal (like the Maharashtra GST Department portal) to view detailed reasons for rejection.

2. Rectify Errors

• Gather and correct any erroneous documents (e.g., PAN, address proof, business registration certificate, etc.).
• Make sure all mandatory fields in the application form are correctly filled.

3. Re-Apply or Appeal

• You can re-submit a fresh application after correcting the issues.
• In some states, there is an option to file an appeal or grievance if the rejection is unjustified.

4. Seek Professional Help

• It is often advisable to consult a tax professional or a legal service provider to avoid rejection due to technical or documentation errors.

Important Notes

• There is no restriction on reapplying once the issues are corrected.
• Keep all communication and acknowledgment numbers safe for reference during follow-up.
• In states like Maharashtra, both PTEC and PTRC applications are made online via the Mahagst.gov.in portal.

Some Exemptions from Professional Tax:

1. People above 65 years of age are exempted.
2. Women who are salaried up to Rs.10000/month are exempted
3. Members of textile industries who work as Badli workers
4. Members of armed forces of union serving a state.
5. Armed members of the Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 applies and to the Border Security Force to whom the Border Security Force Act, 1968 applies and are serving in the state of Maharashtra are exempted.
6. Parents of kids with disabilities (blindness, mental retardation, or any physical disabilities) are exempted.
7. Professionals who are working and are earning for the first year of their profession are exempted(for ex: CA, Medical Practitioner, Tax Consultants, Legal Practitioner, etc are not liable)

Benefits with returns and OTPT Scheme

• Any registered employer needs to make payments in Challan Form No. MTR-6 and has to furnish the return in Form-III B. In case of any failure to upload the return within the due date, the employer may attract penalties. And if the tax has been paid within the due date, a grace period of 10 days is provided to upload e-return. If there is a late in the payment a late fine of Rs.1000/- needs to be paid.
• An employer with PTRC can file a revised return within a period of 6 months from the end of the year.
  • If Tax liability during the previous year was less or not more than Rs.1,00,000
    • The Annual Return on or before 31^st March of the year( For the salary paid for the months from 1^st March of immediately preceding year to 28^th February of the current year)
  • If Tax liability during the previous year was more than Rs.1,00,000
    • Monthly returns on the last day of the month that covers the salary paid for the immediately preceding month
• Every registered employer of PTRC TIN should pay taxes as per due dates before filing the returns
• The facility of e-payment of professional tax is available since 2012

One Time Payment of Tax Scheme

From 1^st April 2018, a new One Time Tax Payment Scheme as introduce where:

1. Under Section 8(3) of the Act, a PTEC holder can avail the benefits of this scheme. As per the new scheme a person can discharge the liability for a minimum of 3 years and maximum up to 35 years by making payments in advance as mentioned in the notification.
2. Any PTEC holder who has already paid the same for 5 years prior to 2018-19 can also avail the OTPT scheme after the completion of 5 years.
3. No refund can be availed once the amount is paid under this scheme.

Role of Online Legal India

We make it easy and quick:

• Fill forms on your behalf
• Validate documents before submission
• Track application status
• Provide your registration certificate upon approval

We have served more than 1,20,000 happy clients and have the finest experts in assisting clients across the country.