Professional tax - where to pay when LLP and partners are located in different states

1) Please continue in Maharashtra.

2) PT is payable by Individual. Employer deduct PT from employee's salary and pay to state government (Municipal Corporation) on behalf of employee.

3) PT tax deductible limit is Rs.2400 per annum. Either partnership company can deduct or you can take individual registration. No need to take multiple registration.

4) As you mentioned GST is not applicable for your business. Because of no employee. GST registration is mandatory whose turnover Trade Rs.40 lakhs and Services Rs.20 lakhs. If you do both Rs.20 lakhs. Please check your turnover.

5) If you are partner in your LLP, you both can work but you can't draw salary for your employment. Income Tax will disallow your salary expenses. Interest on your partners capitals and Profit sharing should be accounted in your books. Not salary.

Please consult with your charted accountant.

Thank you for your response.

From your point #1, I understand that there is no need to take PT registration in Karnataka separately for the partners. PT payment to Maharashtra can continue as-is.
[Currently, LLP books include payment of PT as business expense. Rs. 7,500 p.a. is paid to Maharashtra govt. - 2500 for each of LLP, partner A and partner B]

Originally posted by : Saravanan nagaraj
	3) PT tax deductible limit is Rs.2400 per annum. Either partnership company can deduct or you can take individual registration. No need to take multiple registration.

In point #3, are you saying that either LLP pays or partners pay and both don't need to pay PT?
Because, from my understanding the registration of LLP and its partners are all separate and each entity/registering party must pay their own PT. Am I wrongly interpreting your statement? Kindly clarify.

[Footnote: To add further detail to my original query - GST is not applicable as the turnover is currently less than INR 20 lakhs p.a. Partners are not paid salary; they are only paid remuneration as allowed by sec 40(b) of IT Act. Any payments to partners are as per the LLP deed.]

Point # 3, yes, you are right. Partners are separate from business entity. It is your liability. You should deduct from partner remuneration.

As an Individual, everyone has responsibility to make PT. If your partner who reside in Karnataka, his personal earning from his proprietary business. He can register himself in karnataka.

Professional tax for an LLP involves two separate obligations, and the state of each obligation is different.

FOR THE LLP AS AN ENTITY:
The LLP must obtain a PTRC or PTEC (depending on the state) in the state where it has its REGISTERED OFFICE and in each state where it has a BRANCH or PLACE OF BUSINESS. The entity pays professional tax as a business entity (not as an employer deducting from employees).

FOR THE DESIGNATED PARTNERS:
Each designated partner is liable to pay professional tax as an individual professional in the state where they are resident or carry on their profession. If a partner lives in Maharashtra and the LLP is registered in Telangana, the partner pays professional tax individually in Maharashtra.

WHAT THIS MEANS IN PRACTICE:
- LLP pays PTEC in the state of its registered office (and in each state where it has a branch)
- If the LLP employs salaried staff, it registers for PTRC in each state where employees are posted and deducts PT from their salary
- Each designated partner pays PT in their own state of residence/profession independently of the LLP

So you may end up with registrations in multiple states. The threshold and rates differ by state, so check each state's professional tax notification separately.

For a guide on managing professional tax across multiple states: [professional tax multi-state compliance guide](https://taxgarden.in/blog/professional-tax-multiple-states-compliance-2026)