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We have a Mumbai-based corporate office and branches in Delhi and Ahmedabad as well. We operate all processes, including salary processing, from Mumbai. The Professional Tax is not applicable for Delhi and Ahmedabad.

Professional Tax Deduction Query

Can we deduct Professional Tax from the salary of all staff, or is it applicable for Mumbai only? Please suggest.

Regards,
Mathu.

From India, Thana
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The professional tax is deducted as per the state where employees are working. For example, our organization is located in Bangalore, and payroll processing is done at the head office/corporate office in Navi Mumbai. Therefore, all employees' professional tax is deducted based on the Karnataka state slab, and the professional tax returns should be filed in Karnataka instead of Mumbai.

As your corporate office handles salary/payroll processing for all branches, professional tax should be deducted according to the employees' work location. If professional tax is not applicable in Delhi and Ahmedabad, it should not be deducted from their salary.

I hope this clarifies the process for you.

From United Kingdom, London
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PB
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[QUOTE=anand.backelal@parker.com;2078465] Dear Mathu, The Professional Tax is deducted as per the state where employees are working. For example, our organization is located in Bangalore, and payroll processing is done at the Head Office/Corporate Office in Navi Mumbai. Therefore, all employees' Professional Tax is deducted based on the Karnataka state slab, and the Professional Tax returns should be filed in Karnataka instead of Mumbai.

As your corporate office handles salary/payroll processing for all branches, Professional Tax should be deducted according to the employees' work location. If Professional Tax is not applicable in Delhi & Ahmedabad, it should not be deducted from the salary.

I hope this clarification is clear to you.

Kind regards, Regards

From United Kingdom, London
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Professional Tax Applicability in Different Locations

In Delhi, Professional Tax is not applicable. However, in Ahmedabad, Professional Tax is very much applicable. If the employees are working in Ahmedabad as per the Appointment Letter, then they are liable to pay Professional Tax for that state where they are working.

From India, Ahmadabad
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