20 February 2013
Hi, I have taken my individual registration of PT in 2010 & paying my annual liability of Rs. 2500/-. In 2011 i started my proprietorship firm of Construction Business and also taken Shop Act of the same. However, the PT of employees was not deducted till now. Now i want to start the PT of employees also. What procedure should i follow? Do i require separate regn. for the same? Please guide. Thank You in advance.
Thanks for your feedback. Separate regn. of firm to be done in ptrc or ptec? Also whether i can can get any exemption from payment of PT of last 2 years as i have not deducted the same from the salaries?
10 August 2024
### Professional Tax for Individuals and Businesses
When you have an individual registration and also run a proprietorship firm with employees, you need to comply with professional tax (PT) regulations separately for your individual and business liabilities. Here’s how you can manage this:
#### 1. **Separate Registration:**
- **Individual Registration**: Since you already have an individual PT registration, it covers your own liability.
- **Proprietorship Firm Registration**: You need to obtain a separate Professional Tax Registration Certificate (PTRC) for your business if you haven’t done so already. The PTRC is required for businesses to deduct and remit PT for their employees.
#### 2. **Procedure to Register and Deduct PT for Employees:**
- **Obtain PTRC**: - **Form**: Typically, you will need to apply for PTRC using a specific form provided by your state's professional tax department. - **Documents**: Submit necessary documents, which usually include proof of business (like Shop Act registration), identity proof, and other relevant documents. - **Submit**: Apply for PTRC either online (if available) or by submitting the form in person to the local professional tax office.
- **Start Deducting PT**: - **Deduct PT**: Once you have the PTRC, start deducting PT from your employees' salaries as per the applicable slab rates. - **Deposit PT**: Pay the deducted PT to the state’s professional tax authority as per the schedule (usually monthly or quarterly).
#### 3. **Exemption for Past Periods:**
- **No Automatic Exemption**: Generally, there is no automatic exemption for PT liability for the past periods if PT was not deducted. - **Penalty and Interest**: If PT was not deducted and deposited, there may be penalties and interest for non-compliance. The professional tax authorities may impose penalties for not complying with the PT regulations in the past. - **Rectification**: To address past non-compliance: - **Rectify**: Calculate the amount of PT that should have been deducted and deposited. - **Pay**: Remit the overdue PT along with any applicable penalties and interest. - **Consult**: It’s advisable to consult with a tax professional or the local professional tax authority to understand the exact procedure for rectifying past non-compliance and to discuss any possible penalties or waivers.
#### 4. **Forms and Filing:**
- **PTRC Return**: File professional tax returns for your business using the PTRC return form. This will include details of the PT deducted from employees and deposited. - **PTEC Return**: Continue to file the PTEC return for your own individual professional tax liability.
#### Summary:
1. **Separate Registration**: You need to obtain a separate PTRC for your business if you haven’t done so. 2. **Deduct and Pay**: Start deducting PT from your employees’ salaries and pay it to the professional tax authority. 3. **Rectify Past Liabilities**: Address any past non-compliance by calculating and paying the overdue PT, along with any applicable penalties.
For exact forms, procedures, and any possible relief or waivers for past liabilities, consult the official website of your state's professional tax department or a tax professional.
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