What is Professional Tax PT?
If you’re running a business in Karnataka, then you must aware two things, one is PTRC and one more is PTEC.
PTRC and PTEC for Companies in Bangalore
In Karnataka, businesses, including companies registered in Bangalore, need to comply with Professional Tax (PT) regulations, which are governed by the Karnataka Tax on Professions, Trades, Callings, and Employment Act, 1976. There are two key registrations related to professional tax:
1. Professional Tax Registration Certificate (PTRC)
- Applicable to Employers (Companies, LLPs, etc.)
- PTRC is required if a company has employees earning a salary above ₹25,000 per month.
- The employer is responsible for deducting professional tax from employees’ salaries and remitting it to the Karnataka Commercial Taxes Department.
- The tax is ₹200 per month per employee.
- PTRC due date: Monthly payment by the 20th of the following month.
2. Professional Tax Enrollment Certificate (PTEC)
- Applicable to Businesses and Self-Employed Individuals
- PTEC is required for the company itself (as a business entity) and for directors, partners, and proprietors, even if they do not have employees.
- The annual professional tax payable for companies in Karnataka is ₹2,500.
- PTEC due date: Annual payment by 30th April each year.
PTRC & PTEC Applicability for a Private Limited Company in Bangalore
- A newly incorporated Private Limited Company must register for PTEC within 30 days of incorporation.
- If the company has employees, it must also register for PTRC and start deducting professional tax from salaries.
- The company must file monthly PTRC returns if employees are present.
Penalty for Non-Compliance
- Late PTRC/PTEC registration can lead to penalties.
- Delayed PTRC payments attract interest at 1.25% per month and penalties up to ₹1,000 per return.
- Failure to obtain PTEC can lead to a penalty of double the tax due.
PTRC & PTEC Registration Process in Bangalore
- The application is submitted via the Karnataka Commercial Taxes Department portal.
- Required documents include Company PAN, Incorporation Certificate, Address Proof, and Employee Salary Details (for PTRC).
- The approval usually takes 5-7 working days.
Would you like assistance with PTRC and PTEC registration for your company?
Connect with Prakasha & Co. they can handle the entire process, ensuring compliance and avoiding penalties. Let us know how we can assist