Question
While registering my company for professional tax I was asked for both PTEC and PTRC. What is the difference?
Answer
PTRC is for paying professional tax on your employees salaries; PTEC is for paying the tax on the business or professional themselves. A Professional Tax Registration Certificate (PTRC) lets an employer deduct PT from staff salaries and deposit it with periodic returns. A Professional Tax Enrolment Certificate (PTEC) covers the entity or person own liability: companies, LLPs, directors, partners and self-employed professionals pay a flat Rs 2,500 a year under PTEC, usually with no return. Most businesses with employees need both, generally within 30 days of becoming liable. Estimate amounts with our professional tax calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.