PTEC OR PTRC
pratik sanjay mohadikar (accountant) (93 Points)
04 September 2020
one proprietor is applying for PT, WOULD IT BE PTRC OR PTEC PLEASE GUIDE
2 Replies
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 06 September 2020
The PTRC and PTEC are two difference certificates that are commonly required by a business operating in India. PTRC stands for Professional Tax Registration Certificate, and PTEC stands for Professional Tax Enrollment Certificate. A business usually requires both to conduct business.
The function of a PTRC is to allow the employer to deduct and deposit professional tax to and from the salary of its employees. The PTEC, on the other hand, allows to pay personal professional tax. Hence, a regular firm required both, a PTRC and a PTEC, as by law it has to pay its own professional tax, as well as the professional tax for all its employees. However, in instances where a firm does not have any payable employees, then they will only require a PTEC, and not a PTRC. This is especially the case where firm may not have employees that meet the criteria for professional tax.
So,PTRC IS PROFESSION TAX REGISTRATION CERTIFICATE OBTAIN BY EMPLOYER TO DEDUCT & DEPOSIT PT FROM EMPLOYEES SALARY.
WHEREAS, PTEC IS PROFESSION TAX ENROLLMENT CERTIFICATE OBTAIN BY FIRM TO PAY THERE OWN PT OF BUSINESS.
The function of a PTRC is to allow the employer to deduct and deposit professional tax to and from the salary of its employees. The PTEC, on the other hand, allows to pay personal professional tax. Hence, a regular firm required both, a PTRC and a PTEC, as by law it has to pay its own professional tax, as well as the professional tax for all its employees. However, in instances where a firm does not have any payable employees, then they will only require a PTEC, and not a PTRC. This is especially the case where firm may not have employees that meet the criteria for professional tax.
So,PTRC IS PROFESSION TAX REGISTRATION CERTIFICATE OBTAIN BY EMPLOYER TO DEDUCT & DEPOSIT PT FROM EMPLOYEES SALARY.
WHEREAS, PTEC IS PROFESSION TAX ENROLLMENT CERTIFICATE OBTAIN BY FIRM TO PAY THERE OWN PT OF BUSINESS.
pratik sanjay mohadikar
(accountant)
(93 Points)
Replied 11 September 2020
Thank You So Much Sir.
Means He must obtain PTEC certificate too to pay his own Profession Tax. Actually He Has PTRC now.
Means He must obtain PTEC certificate too to pay his own Profession Tax. Actually He Has PTRC now.
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