10-Jun-2020 Compliances for Filing of Professional Tax Returns by Employers in Maharashtra

Profession Tax in Maharashtra is governed by the Maharashtra State Tax on Professions, Trades, Callings and Employment Act, 1975.

The PTRC ( Profession Tax Registration Certificate) and PTEC ( Profession Tax Enrollment Certificate) are two types of registrations prescribed under the Profession Tax Act.  The difference between both the registrations are as under:

Persons earning salary or wages are covered under PTRC. The employer (government or non-government) are required to deduct professional tax at prescribed rates from the employee’s salary or wages and deposit the same to respective state government. It is employers liability to pay tax even if it fails to deduct profession tax from the wages or salaries of the employees.

However, if a company does not have any employees, then they will only require a PTEC registration and not PTRC.

The Profession Tax slab rate on salary and wages are as follows:

Every registered person needs to make payment in challan Form No. MTR-6 and furnish return in Form III-B (electronic return). In case of failure to upload return within due dates, penalties may be levied. 

Periodicity of filing PTRC Returns :-

A)   If tax liability during the previous year or part thereof was less than Rs 1,00,000:

The Annual return should be filed on or before 31st March for the period immediately preceding previous year which commences on 1stMarch and ends on 28th February.

B)   If tax liability during the previous year or part thereof was Rs 1 lakh or more:

The Monthly Return should be filed on or before the last day of the month (covering the salary paid for immediately preceding month)

Illustration: An employer pays to his employees salary or wages for the month of April on a date during the same month or the succeeding month i.e. May. This payment shall be shown in the return for May to be furnished on or before the 31st of May. But if the employer pays to his employee salary or wage for the month of April in June, he may account for the said salary or wage in the return for the month of June to be furnished on or before the 30th June. In other words, he shall account for the salary or wage in the return that he will furnish next after he makes payment of that salary or wage to the said employee.

Consequences of Late/Non-filing of Return:-

In case employer has failed to file such return within the prescribed time, he shall be liable to pay late fees amounting to following :-

1. Rs. 200 - in case he files the return within a period of thirty days after the expiry of the prescribed time.

2. Rs.1000 – In any other case. 

Waiver of Late Fees :-

However Trade circular 6T of 2020 dated 30/04/2020 has waived whole of the late fee payable by the registered employer in respect of monthly or annual returns pertaining to periods up to March 2020 due to technical difficulties faced by the tax payers subject to fulfillment of eligibility conditions. 

Eligibility Conditions:- 

i) Any amount payable (tax + interest) as per return should have been/shall be paid on or before the filing of returns.

ii) The aforesaid employers should submit the returns pertaining to any periods up to April 2020 on or before 31 May 2020. 

Consequences of Non-payment of tax – Interest & penalty 

1.   Interest

2.   Penalty 

The state may also impose a penalty of 10% of the total amount due after giving a reasonable opportunity of being heard. 

Revision of Returns

In case of any omission or incorrect statement, an employer (PTRC) can file revised return within period of 6 months from the end of the year to which such return relates or before a notice for assessment is served on him in respect of the period covered by the said return, whichever is earlier. 

Points to remember while filing First PTRC Return

In case of new registration, the employer shall file monthly return for all the months commencing from the date of liability till 31st March of that financial year. The first return in this cases will be for the month in which certificate of registration is granted ( covering salary paid for the period commencing from date of liability till the last date of preceding  month in which certificate of registration is  granted), subsequently monthly returns as per due dates till the end of financial year. 

Illustration : An employer, who has become liable to pay tax in the month of July and has been granted Registration Certificate on the 12th August, shall file the first return on or before the 31st August in respect of the period from 1st July to the 31st August, and such return shall contain the details of the salaries and wages and the arrears, if any, paid and the amount of tax deducted in respect of the months of June to July and shall continue to file monthly returns till the end of the year in which his Registration Certificate is granted. 

It is advisable to comply with the provisions of the Profession Tax Act in a timely manner to avoid unwarranted interest liability and penal consequences.

Co-Authors

Bhaumik Shah & Krishnali Bagwe

Article Assistant

Representation & Litigation

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