Practice: Module II
Chapter Thirty
Syllabus topic 1, 2, 3, "Registration of business under The Maharashtra State Tax on Professions, Trades, Callings and Employments Acts, 1975."; "Business Registration under The Employees’ Provident Funds And Miscellaneous Provisions Act, 1952."; "Business Registration under The Employees’ State Insurance Act, 1948."
Pages 76 to 80 of 80
How this set is built
30 marks in one hour, any 2 of 3 questions of 15 marks, subdivisible 8+7, 10+5 or 5+5+5, with more importance to the practical problems wherever possible. MU's own scope note confines the modules to applicability and registration of individuals and partnership firms, and every question below is one of those.
Question 1 (15 marks, practical)
Kulkarni and Joshi is a partnership firm registered under the Indian Partnership Act 1932, carrying on business in Pune from 1 April 2027. It has three partners. It is registered under the Maharashtra Goods and Services Tax Act 2017. On 1 August 2027 it employs the following persons:
| Employee | Sex | Monthly salary Rs. |
|---|---|---|
| Four machine operators | Men | 9,200 each |
| Two packers | Women | 11,500 each |
| One supervisor | Man | 24,000 |
| One accountant | Woman | 31,000 |
| Three helpers | Men | 6,800 each |
State (a) which certificates the firm and its partners must obtain under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act 1975 and by when; (b) the profession tax to be deducted from each employee for the year; and (c) whether the firm must register under Chapter III or Chapter IV of the Code on Social Security 2020.
Answer to 1(a)
The firm takes no enrolment certificate. Section 3(2) of the 1975 Act charges every person excluding firms, whether registered under the Indian Partnership Act 1932 or not, and Hindu undivided families. A partnership firm is therefore outside the charge altogether.
Each of the three partners must obtain a certificate of enrolment, a PTEC, under section 5(2), because Schedule I entry 19(a) charges each partner of a firm Rs. 2,500 per annum. Within thirty days of becoming liable, under section 5(3), and the tax is payable on or before 31 March of each year under section 8(2).
Entry 20A, which charges persons registered under the Maharashtra Goods and Services Tax Act 2017, does not add anything here: the registered person is the firm, and the firm is excluded from the charge by section 3(2).
The firm must obtain a certificate of registration, a PTRC, under section 5(1), because it is an employer liable to pay tax under section 4 in respect of employees whose salaries cross the Schedule I entry 1 thresholds. Within thirty days of becoming liable, that is by 30 August 2027.
If the firm applies late, section 5(5) allows a penalty of Rs. 5 for each day of delay, after a hearing.
Answer to 1(b)
Schedule I entry 1, applied employee by employee.
| Employee | Sex | Salary Rs. | Slab | Tax |
|---|---|---|---|---|
| Machine operators, four | Men | 9,200 | Above Rs. 7,500, not above Rs. 10,000 | Rs. 175 a month each |
| Packers, two | Women | 11,500 | Not above Rs. 25,000 | Nil |
| Supervisor | Man | 24,000 | Above Rs. 10,000 | Rs. 200 a month, Rs. 300 for February |
| Accountant | Woman | 31,000 | Above Rs. 25,000 | Rs. 200 a month, Rs. 300 for February |
| Helpers, three | Men | 6,800 | Not above Rs. 7,500 | Nil |
The rest of this chapter
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The rest of this subject
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