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 

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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.

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