Professional tax in Maharashtra is governed by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. It is levied on both salaried and non-salaried individuals. Failing to pay professional taxes would attract penalties for the respective individuals.

Professional Tax Registration in Maharashtra is a state government-imposed levy, collected by employers from their employees’ monthly salaries. The responsibility of depositing this tax lies with the employers, and failure to comply results in penalties. Additionally, individuals working independently are required to pay professional tax on their own. 

Professional Tax System in Maharashtra 

In Maharashtra, businesses must Professional Tax Registration in Maharashtra within 30 days of establishment. Notably, profession tax applies not only to employees but also to directors and partners of the business. 

Even for businesses without employees, obtaining a Profession Tax Enrolment Certificate (PTEC) is necessary, allowing directors, partners, and proprietors to fulfil their profession tax obligations.  However, once the business starts paying any employee a monthly sum of ₹75,000 or more, a Profession Tax Registration Certificate (PTRC) is required.

To complete the registration process for PTEC and PTRC, individuals need to fill out the relevant forms and obtain secure login credentials. Subsequently, an appointment is scheduled by the department, during which the necessary documents must be provided.

Procedure for Paying Professional Tax in Maharashtra:

1. Application Submission:

Submit an application using Form 1 within 30 days from the date of becoming liable to pay profession tax. This can be done on the official website.

2. New Registration:

 Go to the ‘New Registration’ section on the website and upload the necessary documents.

3. Provide PAN and TAN:

Furnish details related to PAN (Permanent Account Number) and TAN (Tax Deduction Account Number).

4. Activation Link:

An activation link is sent to the registered mobile number and email. Use this link to obtain login credentials.

5. Login and Form Submission:

Log in with the received credentials and click on ‘New Registration.’ Select the Maharashtra State Tax on Professions, Trades, Callings, and Employments Act, 1975. Form II will be issued.

6. Details Submission:

Provide applicant details, utility information related to electricity, scanned copies of relevant documents, bank details and rent information.

7. Acknowledgment:

After form submission, an acknowledgement with the date and time of registration is generated

8. Signature and Submission:

Affix the signature of the proprietor, partner, or director on the application and submit it to the relevant professional tax registration authority.

9. Registration Approval:

Upon receiving the application, professional tax registration is provided in Form 1-A along with a Tax Identification Number (TIN).

Who is Required to Pay Professional Tax in Maharashtra?

The following persons are mandated to pay the professional tax in Maharashtra:

• Persons who have a Professional Tax Registration in Maharashtra
• Professionals working in government or non-government sectors, doctors, lawyers and chartered accountants
• Self-employed and salaried individuals

Professional Tax Payment Timeline  in Maharashtra

• Businesses that bear a profession tax liability of more than Rs.50,000, are required to file the monthly profession tax returns before the last date of each month
• Businesses that have a tax liability of less than Rs. 50,000 in the previous year are required to file a tax return annually on or before the 31st of March
• A revised and corrected professional tax return can be filed in case of any omission or filing of incorrect statements

The due date for the payment of profession tax in Maharashtra is dependent on the date of enrolment of the business establishments. 

• For those businesses that enrolled before the commencement of a year, on or before 31st May, the due date would fall on the 30th June of the respective year. 
• For businesses that enrolled after 31st May, the profession tax payment would be due within one month of the date of enrolment.

Mandatory Documents for Companies to Deposit the Professional Tax:

1. Copy of Articles and Memorandum of Association
2. Copy of Certificate of Incorporation
3. Two Address Proofs of director (Copy of Electricity bill and Passport/Driving License/Voter ID/Ration Card)
4. Copy of Notarised Rental Agreement in English, in case of rented property, along with NoC (No Objection        Certificate) from the property owner and maintenance bill
5. Copy of Sale Deed/Property Deed in English, in the case of owned property
6. Passport size photograph of the applicant
7. Copy of the PAN card of the company and all directors
8. Canceled company cheque.

Mandatory Documents for Individuals to Deposit Professional Tax Registration in Maharashtra:

1. Copy of Passport/driving licence/Voter ID/Property tax receipt/latest electricity bill/ration card.
2. Copy of PAN Card
3. Canceled cheque
4. Copy of Notarised Rental Agreement in English in the case of rented property, along with NoC from property owner and maintenance bill
5. Copy of Sale Deed/Property Deed in English, in the case of owned property.

The Takeaway 

Handling the formalities of collecting or depositing profession taxes can be a cumbersome task, especially when managing other business activities.

Vakilsearch understands these challenges and is well-equipped to assist you through the entire process. With our expertise, filing your Professional Tax Registration in Maharashtra becomes a streamlined and hassle-free experience.