Professional tax Registration - Overview
Professional tax registration is imposed by the state government on all salaried workers including employees, Professionals & trade in India.
Professional tax is levied by the state government and it varies from state to state. Individuals involved in Freelancing business also are advised to obtain professional tax certificate subject to state they reside.
Two types of Professional Tax Certificates
PTEC (Professional Tax Enrollment certificate) Tax paid by Buisness entity, owner or a professional
PTRC (Professional Tax registration crtificate) Employer deducts the tax from the Employees wages and deposit to the government.
Benefits of Professional Tax registration:
Can claim deduction
Avoid Penalty and prosecution
Simplified Annual or monthly compliances
Documents Required For Registration
- PAN Card of shareholders and Directors A valid passport is a must for foreign nationals. .
- Identity Proof of Shareholders and Directors, such as aadhar card and Voter ID/ Passport/ Driving License.
- Address Proof of Shareholders and Directors, such as the latest Telephone Bill /Electricity Bill/ Bank Account Statement.
- Passport size photograph of Shareholders and Directors of updated.
- Business Address Proofs such as latest Electricity Bill/ Telephone Bill of the registered office address
- NOC or No Objection Certificate to be obtained from the owner(s) of registered office
- Rent Agreement is needed if the registered office is a rented place.
- Bank Statement Bank account details of the Company along with a bank statement and canceled cheque.
- Salary and Attendance registar Salary details of employees.
Process To Register
- Filing the Application Online through CTD portal
- Filing the form along with the Requisite Documents
- Professional tax registration certificate can also apply offline by submitting the application.
- Scrutinization by the Tax Authority
- Issuance of Registration Certificate
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