Professional Tax Registration

In Karnataka, Profession tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

We assist our clients in obtaining

  1. New Registrations, amending existing registrations,
  2. Filing monthly and annual PT Returns,
  3. Handling PT Assessment/Notice etc.

Profession Tax shall be paid by every person exercising any Profession or calling or is engaged in any trade or holds any appointment, public or private as specified in the Schedule to the Act.

However, no tax is payable by persons who have attained the age of sixty-five years. Also, no tax is payable for holding any Profession for less than 120 days in that year.

There is two type of Professional Tax registration in Karnataka namely

  1. Certificate of Enrollment(EC)
  2. Certificate of Registration(RC)

Brief summary of the same is enumerated below in the form of Table

Particulars Certificate of Enrollment(EC) Certificate of Registration(RC)
When Registration is required? Every person (whether natural or juridical) who is engaged in any profession, trade, calling or employment in the State of Karnataka, specified in the second column of the schedule, shall obtain the PT Employer Registration - Certificate of Enrollment (EC) from the Profession Tax Officer within Thirty days from the date of commencement business. This registration is mandatory for business entity whether they employ any people in or not

Every employer (except an officer of Government of Karnataka) liable to pay tax shall obtain a certificate of registration under the Act. Further liability to pay tax under the Karnataka PT Act arises, if entity employees any employee whose salary is Rs25000 or more.

Therefore, if entity employees any employee whose salary is Rs.25000 or more, within thirty days of his becoming liable to pay tax, it should Obtain “PT Employee Registration -Certificate of Registration (RC)”

What is the Amount of Professional Tax to be Paid? And Manner of Payment?

Persons with Enrollment Certificate shall pay tax every year before the 30th of April at the rates specified in Column 3 of the Schedule.(also called Professional Tax Renewal)

Annual PT Liability is Rs.2500 for all class of persons (As per Notification dated 14.03.2023)

This Fee is to be paid at the time of Applying for the Registration.

If the salary of an employee exceeds Rs. 25,000 per month @ Rs.200 per month for that employee to be deducted from employee and to be paid to the government by the employer. It is the responsibility and obligation of the employer to deduct from the salary of the employee and remit to the government. Employees won’t get any registration number under Profession Tax.
Documents required for Registration
  1. Certificate of Incorporation, MOA/AOA OR Partnership Deed or Any other Statutory Document
  2. PAN of the Entity
  3. Rental Agreement for place business (Agreement Type: commercial letting). Also provide Electricity Bill.
  4. ID Proof, Address Proof, Aadhaar Card and PAN of the Promoter/Director/Proprietor/Partner
  5. Authorization Letter (Format will be provided)

We also offer other sorts of registration services as below:

  1. Registration under Karnataka Shops and Commercial Establishments Act 1961
  2. MSME or Udyog Aadhar Registration
  3. Registration under Employee Provident Fund
  4. Registration under Employee State Insurance
  5. Import Export Code
  6. STPI or Non STPI Registration
  7. Trade License from BBMP
  8. APEDA Registration
  9. FSSAI