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Wednesday, November 29, 2017

Instructions for Profession Tax Registration Certificate (PTRC) TIN holder, regarding selection of period while making the payment

Instructions for Profession Tax Registration Certificate (PTRC) TIN holder, regarding selection of period while making the payment.
 a)            In the SAP-TRM based system PTRC e-returns are linked with the e-payment of respective period. MGSTD is receiving many complaints in respect of the problems faced by the employers while filling PTRC e-return. Major complaints mention that even though the payments are made, the same are not being reflecting in the return.  It is noticed that many employers are making mistake while selecting period at the time of making payment. In this regard it is necessary to clarify provisions of Rule 11 of PT Rules 1975.As per Rule 11 of the Profession Tax Rules 1975; everyemployer whose Annual tax liability for the previous year or part thereof was
i)              below Rs 50,000 shall file annual return for current year.  Such return shall contain details of salary, wages and arrears paid in respect of March of Previous financial year to Feb of current financial year
ii)           Rs 50,000 or above shall file monthly return.  Such return shall contain details of salary and wages including any arrears paid in respect of the month immediately preceding the month to which the return relates.
Example: This illustration is given on the web-site www.mahavat.gov.in >> Acts & Rules >> Rules >> Maharashtra State …….. Employments Act 1975 >> Rule 11.
An employer pays 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 May.
Considering the above example, the employer should select / enter period as 1st May to 31st May while making the payments of PTRC for depositing PT deducted from the salary / wages of April of that year.
b)         As per Section 6(2) of the PT Act 1975, every return shall be accompanied by a treasury challan as the proof of payment of full amount of tax due according to the return and a return without such proof of payment shall not be deemed to have been duly filed. Therefore, the PTRC e-returns, where the balance payable is more than zero are not accepted by the system.
Selecting proper period while making payment will resolve the issue of balance payable shown in the draft PTRC e-return.
Please find attached circular specifying the procedure of e-payment under SAP system
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