LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Are partners of firm counted for PTRC

rutuja prabhune (97 Points)

24 November 2021

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

Eg 7 Employees + 2 partners For PTRC head count

Reply
Follow
Share

7 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3303 Points)
Replied 24 November 2021

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.

CA Raj Doshi (Practising CA) (8723 Points)
Replied 25 November 2021

No. Partners shall not be counted for PTRC count.

1 Like

CA Raj Doshi (Practising CA) (8723 Points)
Replied 25 November 2021

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

1 Like

dhanashri ramgundewar (6 Points)
Replied 15 August 2022

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 ??

CA Raj Doshi (Practising CA) (8723 Points)
Replied 15 August 2022

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.

2 Like