What is PTEC and Who Needs It?
The Profession Tax Act of 1975 requires the Professional Tax Enrollment Certificate. According to the Act, all incorporated corporations, limited liability partnerships, partnerships firms, and working professionals in both the public and private sectors of India are required to register with PTEC and pay professional taxes. In particular, obtaining a PTEC is mandated by law for contractors, gas dealers, textile dealers, timber merchants, advertising professionals, insurance agents, stock brokers, real estate brokers, commission agents, medical professionals such as doctors and consultants, chartered accountants, tax consultants, technical experts such as engineers and architects, and more. Both people who make money from their jobs, trades, or professions and businesses that are incorporated under the Companies Act of 2013 and engage in any type of business activity are subject to professional tax.
Why Obtain PTEC Registration Within Deadline?
Newly incorporated businesses have 30 days from the date of MCA’s certificate of incorporation to enroll for the PTEC certificate. Likewise, practitioners must to submit an application for PTEC within 30 days of beginning work. During the specified deadlines, registered enterprises must submit their yearly PTEC returns. Penalties under Section 8 of the Profession Tax Act may result from failure to obtain PTEC registration or to comply with compliance deadlines. Thus, it is crucial to meet PTEC deadlines.
The Major Benefits of PTEC for Professionals and Businesses
- PTEC-registered businesses and working professionals are eligible to make annual professional tax payments and claim deductions.
- keeps legal compliance up to date and keeps business operations from being disrupted.
- Avoid paying expensive fines and interest if you fail to pay your professional taxes on time.
- Non-compliance may affect GST filing since PTEC is necessary to acquire GST registration.
- creates a solid reputation for the company as a legal one.
- Contribution to professional taxes support government development and welfare programs.
- reduced business inspection and easy tax compliance.
