I am working with HR dept , could you please clarify whether contract employee are applicable to pay professional tax. Regards, Karthik.
From India, Hyderabad
Acknowledge(0)
Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi According to my Knowledge.Contract employee and who worked on Hourly bases they not require to cut PT.in this case TDS is applicable. Regrds, Pankti
From India, Ahmadabad
Acknowledge(0)Amend(0)
From India, Ahmadabad
Acknowledge(0)Amend(0)
Hi Pankti, But in my previous organisation employee under CLRI had PT deduction, can anyone clarify is there is specific Regards, Karthik.
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
The contract labor is not direct labor. Their wages are paid by the contractor. The employer will pay a lump sum to the contractor for the payment of wages to their labor. Hence, management is not responsible for PT.
Regards,
D. Gurumurthy
HR & IR Consultant
From India, Hyderabad
Acknowledge(0)Amend(0)
109Regards,
D. Gurumurthy
HR & IR Consultant
From India, Hyderabad
Acknowledge(0)Amend(0)
Understanding Profession Tax Obligations
Profession tax is not solely a tax on salary; it is payable by any person who receives revenue. It is required from anyone who receives revenue, regardless of whether there is any legal relationship with the payer. For instance, a doctor or an advocate needs to pay profession tax, but there is no legal relationship with the person who pays it, i.e., the client. Therefore, it is not the source that is relevant, but the place of earning that matters.
The profession tax is a subject of state and local administration, and they have the right to collect it, provided the income or revenue is earned by any person by performing a 'profession' within the local boundaries. Certainly, the principal employer's liability towards the payment of profession tax for workmen engaged through a contractor will arise only when the contractor fails to pay it to the local administration. However, the principal employer cannot escape responsibility by claiming a legal relationship only with the contractor. Like his responsibilities under other Acts, such as EPF, ESI, or Minimum Wages, he must ensure that the contractor has paid the profession tax on time.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(1)Amend(0)
Profession tax is not solely a tax on salary; it is payable by any person who receives revenue. It is required from anyone who receives revenue, regardless of whether there is any legal relationship with the payer. For instance, a doctor or an advocate needs to pay profession tax, but there is no legal relationship with the person who pays it, i.e., the client. Therefore, it is not the source that is relevant, but the place of earning that matters.
The profession tax is a subject of state and local administration, and they have the right to collect it, provided the income or revenue is earned by any person by performing a 'profession' within the local boundaries. Certainly, the principal employer's liability towards the payment of profession tax for workmen engaged through a contractor will arise only when the contractor fails to pay it to the local administration. However, the principal employer cannot escape responsibility by claiming a legal relationship only with the contractor. Like his responsibilities under other Acts, such as EPF, ESI, or Minimum Wages, he must ensure that the contractor has paid the profession tax on time.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Professional tax hyderabad.doc
Profession tax rates.jpg