Pursuant to the amendments in the 1975 Professional Tax Act, a person (natural/legal) registered under the MGST Act is liable to register for Professional Tax Enrollment Certificate (PT-EC) and pay Rs.2500 annually. Furthermore, if the business has any employee whose monthly salary is above Rs. 7500/- it is also required to obtain Professional Tax Registration Certificate (PT-RC) and pays tax after deducting the same from the salary of the employee as provided for in the law. All taxpayers enrolled in GST have been informed in PTRC / PTEC of their compliance and registration.

Under Section 3(2) of Maharashtra Professional Tax, any person except partnership firms and HUF actively or otherwise engaged under one or other class of law is liable to pay tax to the government of the State. The business entity’s professional tax (Private Ltd, Public Ltd, OPO, etc.), as well as the owner or professional tax (sole owner, partner, director, etc.), are permitted under PTEC to pay professional tax.

People who earn wages or salaries are also covered. The employer (government or non-government) is required to deduct professional tax from the employee’s salary or wages at prescribed rates and to deposit the same to the respective government of the State. It is the duty of the company to pay tax even though it fails to subtract from the workers’ wages or salaries. It is common for a fully operating business organization to perform its business operations.