In Kerala, Professional Tax (PT) is a state-level tax levied on income earned by individuals through employment, trade, or profession. Employers, including businesses, firms, companies, and proprietors, are legally responsible for deducting this tax from employees’ salaries and remitting it to the local municipal authority or Panchayat. Failure to register and comply can result in penalties, interest, and legal notices from the authorities.
This blog provides a comprehensive, step-by-step guide on how employers in Kerala can obtain Professional Tax Registration, ensure compliance, and avoid any legal pitfalls. Whether you’re running an IT company in Kochi, a textile unit in Thrissur, or a trading business in Kozhikode, this guide will walk you through the entire process.
If you need expert assistance for your Professional Tax registration and filing, visit OurTaxPartner.com – Kerala’s Trusted PT Compliance Service.
What is Professional Tax?
Professional Tax is imposed by state governments under the authority of the Constitution of India (Entry 60, State List). In Kerala, it is governed by the Kerala Municipality and Panchayat Acts, and administered by local bodies such as the Corporation, Municipality, or Panchayat in each region.
Employers must deduct professional tax from employee salaries (based on income slabs) and deposit it with the concerned local authority. Employers also need to register themselves as an entity responsible for PT deduction and pay their own PT as business owners or professionals.
Who Needs to Register for Professional Tax in Kerala?
The following types of entities are required to obtain Professional Tax Registration in Kerala:
- Private Limited and Public Limited Companies
- Limited Liability Partnerships (LLPs)
- Proprietorships and Partnership Firms
- Societies, Trusts, and NGOs
- Startups and MSMEs employing staff
- Freelancers and self-employed professionals (doctors, consultants, designers, etc.)
Employers with salaried employees must deduct tax from their wages and file monthly or semi-annual returns as per local authority norms. They also must obtain two registrations:
- Enrollment Certificate (EC): For the employer (business entity) to pay tax for itself
- Registration Certificate (RC): For deducting and remitting tax on behalf of employees
Step-by-Step Process for Professional Tax Registration in Kerala
Step 1: Collect Required Documents
Ensure you have the following documents ready before applying:
- PAN Card of the business and authorized signatory
- Aadhaar Card of the proprietor/partners/directors
- Proof of business address – electricity bill, rent agreement, or property tax receipt
- GST Registration Certificate (if available)
- Employee list with salary details and designation
- Registration certificate under Shops and Establishments Act
- MOA/Partnership Deed (for companies/firms)
- Passport size photograph of signatory
Step 2: Determine Applicable Local Body
Professional Tax in Kerala is handled by local bodies, so registration must be done with the relevant Municipality, Corporation, or Panchayat under which your business premises fall. For example:
- Kochi Municipal Corporation for businesses in Ernakulam city
- Thiruvananthapuram Corporation for companies in the capital
- Kakkanad Panchayat for firms located in Infopark region
Step 3: Application Submission
Most local authorities in Kerala have now digitized their PT registration process. The application can be submitted online via the respective Corporation/Municipality website or manually at the local tax office.
In the application form, you will be asked to provide:
- Nature of business
- Number of employees and their monthly salary slabs
- Business registration details (GST, Shops Act, etc.)
- Authorized signatory details
Attach scanned copies of all supporting documents along with the application. Ensure documents are properly attested and in required formats (PDF/JPEG).
Step 4: Verification by the Local Body
Once the application is submitted, the local authority may conduct a physical inspection or online verification of your premises and documents. Upon successful verification, they will issue:
- Professional Tax Enrollment Certificate (EC) for the business
- Professional Tax Registration Certificate (RC) for employees
This process generally takes 5 to 10 working days, depending on the jurisdiction and completeness of documents.
Step 5: Commence Monthly Deduction and Filing
Once registered, employers must deduct professional tax from employees’ salaries based on the income slab provided by the local authority and remit it by the 5th of the following month.
Some local bodies require monthly returns, while others allow half-yearly or annual filing. Returns must be accompanied by challans or payment receipts and submitted online or offline based on local policies.
Professional Tax Slabs in Kerala (Indicative)
Note: The exact slabs may vary slightly by location, but the following is a typical example:
| Monthly Salary (₹) | Professional Tax (₹ per month) |
|---|---|
| Up to ₹11,999 | Nil |
| ₹12,000 – ₹17,999 | ₹120 |
| ₹18,000 – ₹29,999 | ₹180 |
| ₹30,000 and above | ₹208 |
Employers must maintain detailed payroll records to show proof of deduction and payment during inspections or audits.
Penalties for Non-Compliance
Failing to register or remit Professional Tax on time can result in:
- Late fee or penalty up to ₹1,000 for each month of delay
- Interest on delayed payments
- Legal notice and summons by local body
- Revocation of trade license or registration
Therefore, timely registration and ongoing compliance are essential to avoid business disruptions.
Why Choose Professional Help for PT Registration?
Many businesses in Kerala prefer to outsource PT registration and filing to experts due to the following reasons:
- Navigating different rules across multiple Municipalities and Panchayats
- Ensuring accurate slab selection and deduction calculation
- Timely return filing and payment tracking
- Handling inspections and follow-up with authorities
If you’re looking for a reliable partner to handle your Professional Tax compliance in Kerala, OurTaxPartner.com provides complete assistance including registration, calculation, monthly returns, and advisory support.
Learn more or book a consultation at: www.ourtaxpartner.com/filing-service/professional-tax-filing/
Conclusion: Stay Compliant and Avoid Penalties
Professional Tax Registration is a legal necessity for every employer in Kerala. Whether you’re a startup, a growing MSME, or a corporate enterprise, timely registration and deduction are crucial to maintaining clean business records and avoiding fines.
Don’t let compliance errors slow down your business. Secure your PT registration with expert help from OurTaxPartner.com and ensure complete peace of mind in your tax obligations.
