PT Registration

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PT Registration

Profession Tax (PT) is a tax levied on the employment and Profession by respective State Government in India.

In Karnataka, Profession Tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Under the provision of the Act, Profession Tax shall be paid by every person exercising any Profession or calling or is engaged in any trade or holds any appointment, public or private as specified in the Schedule to the Act.

    I. Who has to register under PT Act?
    Profession Tax shall be paid by every person exercising any Profession or calling or is engaged in any trade or holds any appointment, public or private as specified in the Schedule to the Act Hindu undivided family (HUF)
    Firm Company (Public or Private Limited)
    Other Corporate bodies Any Society
    Any Club or Association. Every branch of a firm, company, corporation or other corporate body, any society, club or association is treated as separate person for the purpose of tax liability

    II.Under the Professional Tax Regulations in Karnataka, an employer must obtain TWO registrations depends on the status whether there are people employed by the business or not

    1. Professional Tax Employer Registration - Certificate of Enrollment (EC)


    Every business entity in Karnataka shall obtain the Certificate of Enrollment (EC) from the Profession Tax Officer within Thirty days from the date of commencement business. This registration is mandatory for business whether they employ any people in employment or not.

    Every registered business with Enrollment Certificate shall pay tax every year before 30th of April at the specified rates. The amount of tax payable by the employer and the date by which the amount to be paid shall be mentioned in every certificate of enrollment. If an employer has fails to obtain the registration or enrollment within the time specified, the assessing authority shall impose a penalty for delay in obtaining the Registration.


    If the Business Establishment is registered as Employers of establishments defined under the Karnataka Shops and Commercial Establishments Act, 1961, the tax rate is as follows:

    No employees Up to 5 employees 5 to 10 employees More than 10 employees
    Nil Rs.1000 Rs.1500 Rs.2500

    The rate of Employer Professional Tax for Company, LLP and Partnership is Rs.2500 per year.



    2. Professional Tax Employee Registration - Certificate of Registration (RC)


    Every employer liable to Professional Tax on behalf of their employees must obtain a Certificate of Registration (RC) with in thirty days of his becoming liable to pay tax (starting employment of people).

    Professional Tax Employee Registration is a must for all the employers who employ people with salary or wages of Rs.15000 /- or more. Certificate of Enrollment (EC) is must for obtaining the Certificate of Registration (RC).


    III. Effect of Non-Registration

    If an employer fails to get the Certificate of Enrolment (EC), or to obtain the Certificate of Registration (RC) or fails to file any return in time, the assessing authority under Karnataka Professional Tax Act shall order the amount of tax to be paid by an employer and impose penalty for non-payment tax and non-filing of returns that are due from an employer.