mayuriyadav Started The Discussion:
My firm got notice to pay professional tax.
I wanted to know what are the 'Professional Tax Rules for
and Company differently.
If any one can through more light on Provident fund and ESIC wil also b better.
Waiting for your valuable suggestion.
Profession Tax is same for all kinds of establishment and it is not based on the constitution of the company as proprietorship, partnership or company.
ESI is applicable to an establishment whether constituted as proprietorship, partnership or company if it engages 10 or more employees. EPF is applicable to an establishment in which 20 or more employees are employed. In case of Cooperative Societies the coverage of PF will take place when the number of employees become 50.
This matter is not an HR/IR issue but still let me say that when there is a retirement and or admission of a partner, the existing partnership deed will become invalid since the same was entered into between the old partners. Therefore, you have to make a new partnership deed and register it.
With due respect you, Sir I wish to correct you. We are all in learning stage and this is very good platform we have. PT, as you said is not our subject, we are bound make mistake.
It is state law. Law is different every state. Some states go not have this law.
PT, we i.e. HR know only PTR. We make deduction from salary of employee towards PT and remit it in PTR number. PTR means Proff. Tax Registration.
PTE is another term which means Proff. Tax Enrollment. Company is liable to enroll its name under it and pay PT payable in the name of company. Also, each proprietor, partner and director is liable to enroll his name under it and pay his PT accordingly.
In Maharashtra, private limited and limited companies are liable for PTE number in its name and pay PT annually Rs. 2500/- under this PTE.
Till 2006, partnership firms were liable for PTE and PT. But now excluded.
Each proprietor, partner and director is also liable for PTE and PT in his name. PT is Rs. 2500/- annually.
Any person can be a proprietor, partner and director for more than one firm / company. But he is liable for PTE and PT once only.
I suppose you are from Banglore. I am not aware of PT rules in Banglore. But still, in my views it is an individual liability and responsibility of a partner to obtain PTE and pay the PT accordingly. Whenever any new partner is inducted, he is liable to obtain PTE in his name if he is not having it.
Likewise, outgoing partner is liable to apply for cancellation of PTE in his name if he has no income from any business.
In this context, same rule is applicable to proprietor and directors, if PTE is applicable to them in your state.
The term Induction of new partner and outgoing partner, please do not take in real sense. There is no induction of new partner or outgoing of partner in partnership firm. There is a formation and dissolution of partnership.
Hope I answered your query.
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