What is a PTEC and PTRC Registration?
PTRC stands for Professional Tax Registration Certificate. The function of a PTRC is to allow the employer to deduct and deposit professional tax to and from the salary of its employees.
PTEC stands for Professional Tax enrollment certificate, which allows paying the company’s and their director’s professional tax. A business usually requires both to conduct business.
Usually these registration are required to conduct business in Maharashtra and many other states. PTEC allows to pay professional tax of a business entity. That means PTEC allows company to pay the company's and their director's professional tax. In case of individual like professionals sole proprietor (provided he does not have any employees) all have to register under PTEC. PTRC allows the employer to deduct and deposit professional tax from the salary of its employees and deposit it to government. PTEC and PTRC are required by a regular company to pay its own professional tax, as well as professional tax for all its employees as is applicable.
History:- Professional Tax was introduced in the year 1949. Professional Tax happens to be a source of revenue for the State Government. PTRC and PTEC under professional tax. The PTRC & PTEC are different certificates that are required by a business entity operating in India.
|PTEC Registration||PTRC Registration|
|Stands for||Professional Tax Registration Certificate||Professional Tax Enrollment Certificate|
|Required for||Professional Tax in India||Professional Tax in India|
|Description||A certificate obtained by an employer to deduct and deposit professional tax from employees’ salary||A certificate obtained by an employer to pay their own professional tax, as well as by professional practitioners such as CAs, Doctors, Advocates, Architects, etc. to pay their own professional tax|
|Purpose||To deduct and deposit professional tax from employees’ salary||For professionals to pay their own professional tax|