Are partners of firm counted for PTRC

Are partners head count is counted as an employee in PTRC registration

Eg 7 Employees + 2 partners For PTRC head count 

Replies (7)
Quick Summary
This discussion clarifies whether partners of a firm are counted towards the employee headcount for Profession Tax Registration Certificate (PTRC) purposes. The consensus is that partners are generally not counted as employees for PTRC, as their remuneration is not considered salary. It also touches upon individual PTEC registration requirements for partners who might be employees elsewhere and the process for cancelling PTEC registration.

As per the amendments in the Profession Tax Act 1975, a person (natural / legal) registered under MGST Act is liable to enroll for Profession Tax Enrollment Certificate (PT-EC) and pay Rs.2500 per annum. In addition, if the business is having any employee whose monthly salary is above Rs. 7500/- is also required to obtain Profession Tax Registration Certificate (PT-RC) and pay tax after deducting the same from the employee’s salary as per the provisions of law. All tax payers who are register in GST has received Notice for Compliance and Registration in PTRC / PTEC.

No. Partners shall not be counted for PTRC count.

The remuneration to partners is not salary for the purpose of PTRC. 

Is salaried partner(employee of another entity) need to take separate PTEC registration for partnership firm as a partner?

Example: A and B are partner of AB & Associates. AB & Associates has GST and PTEC registration. Partner B is employee of CD ltd. where he already paying Professional Tax every year and Partner A is NRI. Is partner A and B need to take separate registration for PTEC as a partner ??

Firstly, AB & Associates are not required to obtain Nor pay PTEC

 

Secondly, Partner B has to obtain and pay PTEC.

Further, Partner B has to declare to CD Ltd that he is holding PTEC ltd so no PTRC shall be deducted from his salary. Format of declaration available on mahagst website.

 

 

Can I cancel PTEC registration without cancellation of gst registration of partnership firm on the ground of partners taken PTEC ?

You should apply for cancellation and see what the officer has to say.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details