The Enrolment Certificate
Chapter Twenty-One
Syllabus topic 1, "Registration of business under The Maharashtra State Tax on Professions, Trades, Callings and Employments Acts, 1975."
Pages 52 to 54 of 80
Who needs it
Section 5(2):
Every person liable to pay tax under this Act (other than a person earning salary or wages, in respect of whom the tax is payable by his employer), shall obtain a certificate of enrollment from the prescribed authority in the prescribed manner.
The bracket is the whole test. An employee does not enrol, because his employer deducts his tax and pays it over under section 4. Everybody else who falls in an entry of Schedule I enrols in his own name.
Section 5(2A) adds one class: a citizen of India employed by a diplomatic or consular office or trade commissioner of a foreign country in the State, who obtains a certificate of enrolment and pays the tax himself, because there is no employer the Act can reach.
Who this means for MU's two forms of business
A proprietor. He is a person engaged in a trade or calling and falls in an entry of Schedule I, so he enrols. If he also has employees liable to the tax, he separately registers for a PTRC.
A partnership firm. The firm does not enrol, because section 3(2) excludes firms from the charge altogether. Each partner enrols, under Schedule I entry 19(a), at Rs. 2,500 per annum.
A limited liability partnership. The LLP itself enrols, having been brought into section 3(2) in 2018, and each partner enrols too under entry 19(b).
| Form | Who holds a PTEC | Who holds a PTRC |
|---|---|---|
| Proprietor | The proprietor | The proprietor, if he has employees liable to the tax |
| Partnership firm | Each partner, and not the firm | The firm, if it has such employees |
| Limited liability partnership | The LLP and each partner | The LLP, if it has such employees |
| Hindu undivided family | Each co-parcener other than a minor, and not the family | The family, if it has such employees |
| Company | The company, and each director under entry 5 | The company |
The row for the partnership firm is the one to learn. A firm of three partners with two employees produces three PTECs and one PTRC, and nothing at all in the firm's own name on the enrolment side.
The time limit
Section 5(3), the same thirty days as for registration: within thirty days of becoming liable to pay tax, or within thirty days of becoming liable at a rate higher or lower than the one in the existing certificate.
The second limb is a real duty. A person whose class changes, and so whose rate changes, applies for a revised certificate of enrolment. The proviso to section 5(3) softens it: where the rate is revised by law, the rate in the existing certificate is deemed revised on the date of the revision, and the holder pays at the revised rate while he waits for the new certificate.
The rest of this chapter
Module one is free. The rest of this chapter comes with the B.Com. (Accountancy) Semester 1 notes.
You are reading a chapter from a later module. Everything in module one of every subject stays free, and so does the syllabus.
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Free either way: the syllabus, and module one of every subject.
The rest of this subject
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