I wanted to know if a company implements a project in various different states. and hence has employed/deployed employees in various states. however the payroll is centralised processed in its HO at mumbai. Will LWF / PT of all the states in which it operates will apply or only for maharashtra for all the employees??
What if the company doesnt have an office to operate in all the states?
From India, Mumbai
What if the company doesnt have an office to operate in all the states?
From India, Mumbai
Welfare fund can be centralised in case you do not have an office in the places where your employees are working. But profession tax cannot be paid at Corporation/ Municipality/ Gram Panchayat where your HO is situated. In the latter case the amount should be paid to the respective office of the local administration where the employees are engaged because Profession tax is a state subject and a revenue of the state.
If you have an office at other state, the said office should be registered under the Shops and Commercial Establishments Act of that state and by that, automatically, the employees employed in that office will become subjected to welfare fund applicable to the employees of shops and commercial establishments of that state. In case you do not have an office, the question of registration does not arise and therefore, no need of payment of welfare fund at the place of working.
Madhu.T.K
From India, Kannur
4193If you have an office at other state, the said office should be registered under the Shops and Commercial Establishments Act of that state and by that, automatically, the employees employed in that office will become subjected to welfare fund applicable to the employees of shops and commercial establishments of that state. In case you do not have an office, the question of registration does not arise and therefore, no need of payment of welfare fund at the place of working.
Madhu.T.K
From India, Kannur
Hi, Your company has to apply and remit for MLWF and PT state wise only, even though you do not have office in all states. Regards, Triptika +91-9967630445
From India, Mumbai
From India, Mumbai
On incentive Professional Tax in Applicable, if it is pay once in a year? Any notification on it?
From India, Mumbai
From India, Mumbai
Profession tax is levied on the income of the individuals and it does not mean that it is payable on the "salaries" alone. It is payable by a professional practicing medicine, law etc whom do not receive any salary. Therefore, PT is to be computed on the gross income received by an individual whether by means of salary or not. As such, you have to include bonus, incentive or other allowances paid to him during the period. Most of the states make it payable in half year. Then the half year period during which the payment of yearly incentive or bonus falls should include the same also as income received by the respective employee.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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TN Labour Welfare Fund 2018.pdf