The Labour Welfare Fund Act is not applicable to all category of employees working in the establishment. It depends upon the wages earned and designation of the employee. Also, one needs to check the total number of employees working before extending this Act to their establishment. The applicability of the Act based on the number of employees may differ depending upon state specific Act. Labour welfare fund is paid to Labour welfare board the employer once in a year or monthly based on the applicability (differs from state to state) , which is been spend to numerous purpose like educational, medical facilities, promoting libraries etc;
You can visit https://www.simpliance.in/labour_welfare_fund for further clarifications
PT should be paid by every single individual. Professional tax should be deducted from employees salary and paid to the Municipality. Some employers deduct PT on monthly basis whereas some on twice a year (Half yearly once basis March & September) .
Gross salary of the employee for the particular period (Oct-March wages for March calculation & April-Sept wages for Sept calculation ) should be calculated. The PT slabs vary from state to state.
You can visit https://www.bankbazaar.com/tax/profe...QB2XBBtGG&rc=1 for further clarifications.
Swathi Krishnamani, Chennai
29th June 2018 From India
What is the basic difference between Labor Welfare Fund & Professional Tax.
Labour Welfare Fund is governed by the Labour Board of the respective States and function under the Welfare Commissioner. Both the Employer and Employee have to contribute to the Fund. The Employer contribution is twice the rate of employee Contribution. The State Government also contribute to Fund which is equal to the Employers’ contribution. The rate of contribution is fixed by the respective State Governments which vary from State to State. In addition to the payment of contribution, the Employer is also liable to remit the unpaid accumulations, if any.
Periodicity of payment of Contribution is also varies from State to State. All other States except the following States Labour Welfare Fund Act is in force:--
Assam, Bihar, Himachal Pradesh, J&K, Jharkhand, Meghalaya, Orissa,
Pondicherry, Rajasthan, Sikkim, Tripura, UT of Chandigarh, Uttar Pradesh (UP The Act is in existence but no contribution is payable) and Uttarakhand
Professional Tax is also State Act. The tax is levied from the monthly salary is earned by en employee. There is a slab fixing the rate of tax payable. The Employer is also liable to pay a onetime tax per annum at the prescribed rate depending upon the type of business. Some States like west Bengal, Mumbai the P Tax comes under the Directorate of Commercial Taxes whereas in the State of Tamil Nadu it comes under the Chennai Corporation, Gram Panchayat.
The periodicity of the payment of tax also varies from State to State. Like LWF P Tax also not applicable in some States.
Which types of industries are covered under LWF & PT separately.
Both LWF and PT is applicable to all type of industries. While determining applicability of LWF the employee strength as prescribed by the respective State Governments is taken into consideration whereas in the case of P Tax it is applicable even there is only one employee.
Can both be applicable in any particular state.
Yes – For Example Kerala, Tamil Nadu, Andhra, Telangana, Karnataka, West Bengal, Maharashtra, Gujarat …..
What category of employees coveted in each.
Here also it varies from State to State. In the case of LWF State Like Haryana all employees are covered irrespective of their category whereas State like Andhra, Telangana, Chattisgarh, West Bengal Madhya Pradeh New Delhi all managerial category and supervisor capacity )subject to wage ceiling) are excluded from the purview of the Act
In the case of P Tax all employees irrespective of the categories are covered.
Is there any designation or salary limitation in both.
In the case of LWF limitation of designation as explained above Whereas in the case of P Tax the salary is the cretiria.
What is the calculation method of both.
It varies from State to State. Monthly, quarterly, half yearly and annually.
You can also visit the link mentioned by Swathi Krishnamani
P S Lakshmanan
S..G. Management Services
29th June 2018 From India, Kolkata