Profession tax for llp

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2013 Dear Sir,

In case of LLP(Limited liability Partnership, who is required to take PTEC? the LLP & partners both or only partners will do?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 December 2013 The LLP will have to take the registration.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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25 December 2013 LLp and not ind partners need to take registration for PTEC.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2013 what about partners of LLP?
Whether LLp is required to take PTRC number and deduct PT or the partners have to take their own PTEc no. and pay PT?

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 Whether partners of LLp are required to take their own PTEC no?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 In Maharashtra, the handling of Professional Tax (PT) for a Limited Liability Partnership (LLP) and its partners involves specific regulations. Here's a detailed breakdown of the requirements and responsibilities:

### **1. Professional Tax Registration and Compliance for LLPs**

#### **a. PTRC Registration:**

- **LLP's Responsibility:**
- **Professional Tax Registration Certificate (PTRC):** The LLP itself is required to obtain a PTRC if it has employees. This is necessary to comply with the legal requirement to deduct and pay Professional Tax on behalf of its employees.
- **Filing and Payment:** The LLP must file monthly or quarterly returns and pay Professional Tax for its employees, including any remuneration paid to the partners if they are treated as employees.

#### **b. PTEC Registration:**

- **Partners’ Responsibility:**
- **PTEC (Professional Tax Enrollment Certificate):** Typically, individual partners of an LLP are not required to obtain a separate PTEC if they do not draw a salary or remuneration from the LLP or if the LLP is handling Professional Tax compliance on their behalf.
- **Separate Professional Activities:** If partners have separate businesses or professions outside the LLP where they earn income, they would need to obtain a PTEC for those activities. For example, if a partner is also engaged in another business where they receive income, they should obtain a separate PTEC for that business.

### **Summary of Responsibilities:**

1. **LLP's Role:**
- **Obtain PTRC** if it has employees (including partners if they draw a salary or remuneration).
- **Deduct and pay Professional Tax** for all employees and partners drawing a salary.

2. **Partners’ Role:**
- **No Separate PTEC** is required for partners in the LLP if they are only drawing remuneration from the LLP and the LLP is handling PT compliance.
- **Obtain Separate PTEC** if partners are involved in additional businesses or professions outside the LLP where they earn income.

### **Key Points to Note:**

- **For Employees (Including Partners Drawing Salaries):** The LLP must handle the Professional Tax deductions and payments.
- **For Additional Business Activities:** Partners need to obtain PTEC if they have other professional or business activities that require separate registration.

### **Steps for Compliance:**

1. **For LLP:**
- Register for PTRC with the Maharashtra Professional Tax Department.
- Deduct PT from salaries/remuneration and make payments.
- File necessary returns periodically.

2. **For Partners:**
- Ensure PTEC is obtained for any additional business/professional activities outside the LLP.

In essence, the LLP is responsible for Professional Tax compliance for its employees and partners drawing salaries. Partners do not need a separate PTEC unless they engage in other business or professional activities independently.