Current Tax Payment, Return Filing, and PTRC Due Date Procedures in Maharashtra,2022-23
The government has eliminated the late fees for the fiscal year 2019–20 under Circular No. 06 T of 2020, dated 30 April 2020, providing the employer:
Pays the PTRC liability as required by the return and must have done so prior to filing the return.
The employer must submit the return for any period up to March 2020 on or before May 31, 2020.
In terms of The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, what does PTRC mean?
PTRC stands for Profession Tax Registration Certificate. Every Employer has to deduct profession tax from the salary of the employee and deposit the same in the government treasury as per Rule and The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. An entity (Sole Proprietor, Partnership, LLP, Company or any other legal entity) is compulsorily liable to obtain PTRC registration, if it pays salary to any Male employee of more than Rs 7500/- per month or pays salary to Female employee of Rs 10,000/- per month of the employee arises if the total salary of the employee is more than Rs. 7,500.
What is the rate at which the employer must deduct the profession tax of an employee as per Rule and The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 ?
Amount of Profession tax to be deducted to be deducted by the employer is as follows:
|r. No.||Amount of Salary of employee (per month)||Rate of Tax|
|1||Upto Rs. 7,500||No Tax|
|2||Male Employee Salary more than Rs 7500/- but less than Rs 10,000/-||Rs. 175 per month|
|3||Female Employee Salary upto Rs 10,000/-||No Tax|
|4||Any Employee Male or Female Earning more than Rs 10,000/-||Rs. 2,500 Per Annum (Rs. 300 for the month of February and Rs. 200 for other months)|
Due date of payment and filing of return under PTRC For Financial Year 2019-20 and Financial Year 2020-21
The following is the summary for due date for making payment and filing return under PTRC:
|Amount of PTRC liability for the FY 2019-20||Due Date and Type of Return|
|First Year of Registration||Monthly returns before last day of month|
|Less than Rs. 50,000||On or before 31st March of the Year for which the return relates (Yearly return)|
|More than Rs. 50,000||On or before the last date of the month to which the return relates (Monthly return)|
As per section In case the employer fails to file the return within the due date then the employer is liable to pay late fee of Rs. 1,000 before filing the return.
As per circular no. 04 T of 2020 dated 19/03/2020 the government has waived off the late fees for the financial year 2019-20 provided the employer:
- Pays the PTRC liability as per return and should have been paid the same before filing the return and
- The employer should submit the return pertaining to any period up to March 2020 on or before 30th April 2020
Further as the lockdown because of COVID-19 is extended till 3 May 2020, there are expectation of dealers to further extend the deadline
|Amount of PTRC liability for the FY 2020-21||Due Date and Type of Return|
|First Year of Registration||Monthly returns before last day of month|
|Less than Rs. 1,00,000*||On or before 31st March of the Year for which the return relates (Yearly return)|
|More than Rs. 100,000*||On or before the last date of the month to which the return relates (Monthly return)|
*From FY 2022-23as per circular dated 6th June 2019 the limit has revised to Rs 1,00,000
The due date of payment and filing of PTRC return depends on the PTRC liability of the entity for the Previous Year. Where the employers PTRC liability for the previous year is less than Rs. 1,00,000 from FY 2022-23 then the entity is liable to pay the PTRC payment and file the return on or before 31st March of the year for which the return relates. For E.g Return for FY 2022-23 shall be furnish on or before 31st March 2023 if total liability in previous year was less than Rs 1,00,000/- . In this case return shall be filed yearly.
Where the employers PTRC liability for the previous year is More than Rs. 1,00,000 then the entity is liable to pay the PTRC payment and file the return at the end of the immediate next month i.e. at the end of next month. For e.g. Return for Month of April 2020 shall be furnish on or before 30th May 2020. In this case return shall be filed monthly.
Late fees and Interest under the PTRC Maharashtra
|Late fees on late filing of PTRC return||Rs. 1000|
|Interest on failure to deduct profession tax||Interest at 1.25% of PTRC liability per month till the default continues|
Interest on failure to deduct profession tax
As per section 9(2) of the PTRC act 1975, if an employer who is liable to pay PTRC under the act, fails to pay the same to the government then he is liable to pay simple interest at the rate of 1.25% each month for the period for which the tax remains unpaid.
As per section 6 of the PTRC act 1975, In case the employer fails to file the return within the due date then the employer is liable to pay late fee of Rs. 1,000 before filing the return.
The Responsibility of PTRC is Explained with an Example
For instance, Mr. X is a business owner who currently employs 5 people. Of these, 3 are men and 2 are women, with 2 men earning a monthly income of Rs. 15000 each, 1 male earning Rs. 9000, and 1 female earning Rs. 15000 and the other female receiving Rs. 9500. In the same fiscal year, Mr. X engaged 1 male accountant, with a salary of Rs. 12,000 per month, in the month of October 2019. Let’s determine Mr. X’s PTRC liabilities for the fiscal year 2019–20.
- Calculation of PTRC for Male employees with salary less than Rs. 7500 but not more than Rs. 10,000:
Only 1 employee is paid salary of less than 10000 the PTRC liability shall be as follows: = (175*12) = 2,100
- Calculation of PTRC for employees with salary more than Rs. 10,000:
In the above case 4 employees are getting salary of more than Rs. 10,000 but one of the employee is employed from October 2019 which will be calculated as below:
- The PTRC for 3 employees shall be as follows: [(200*11) + 300] X 3 = 7,500
- The PTRC for 1 employees shall be as follows: (200*5) + 300 = 1,300
Total PTRC liability of 4 employees shall be (a + b) = 7500 + 1300= 8,800
So, total PTRC liability of Mr. X is Rs. 10,900 (1 + 2)
Procedure for PTRC return from FY 2020-21
The Procedure of PTRC return can be summarized in 3 stages:
- Calculation of PTRC liability
- Payment of PTRC fees via MTR form no 6
- Preparation of PTRC return and filing online FORM_IIIA
Further in the article we will learn how to perform the above procedure.
Procedure for payment of PTRC online MTR form no 6
Step 1: Go to www.mahagst.gov.in
Step 2: Click on “Menu” button. Click on Menu button on the upper left side of the page, you will be able to see “E-payment” as below.
Step 3: Click on“E- Payment – Returns” in E-payment tab.
Enter the TIN/PAN of the entity enter captcha and click on next, You will be redirected to payment details:
Step 4: Enter payment details as below:
- Select act as “PTRC act” the form ID will be automatically selected as “FORM_IIIB”
- Financial year as FY 2019-20
- Select Period and Enter Amount
While making PTRC payment, in period dropdown, select succeeding month of the month to which salary pertains. E.g. select June in the period dropdown to deposit PT deducted from the salary of May.
- Select Location and Enter mobile number
And click on “Proceed for Payment” button
Step 5: Payment of PTRC fees:
- Click on Agree terms and conditions check box
- Select payment gateway as “Banks supported by GRAS” and click on Proceed
You will be redirected to MTR form no 6.
Click on “Make payment” button
You will be directed to select bank and make payment gateway
Step 6: Final Payment of PTRC fees
“Select the Bank” and Enter captcha
Select and “Agree the terms and conditions” check box
Click on “Proceed for Payment” button. You will be redirected to Bank website Enter the credentials and make payment After making the payment save the challan for return and record purpose.
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