Thread Started by #bijay_majumdar

When deducting the PT from employees salary.Client asks challans? If contractor has not deducted the PT.
Who stands responsible principal employer or contractor?
15th September 2018 From India, Vadodara
Contractor is responsible for deduction of PT from his contractual employees.
Every month the principal employer needs to check the challans for deposit of PT.
15th September 2018 From India, Pune
This is an interesting question.For example, the contractor is located in Bangalore but deploys his staff to work at principal employer's location which is in Chennai. In this case which state's professional tax is applicable to the contractor's employees. whether it will be that of the State of Karnataka or Tamil Nadu .
B.Saikumar
HR & Labour Relations Consultant
Navi Mumbai
15th September 2018 From India, Mumbai
Learned Saikumar,
State where employee is working will levy applicable tax.
PT is a local state tax.
Right to levy this tax is given to states through the Clause (2) of Article 276 of India’s constitution.
16th September 2018 From India, Pune
This is true,but in the event of a credit period being applied for payments,How can a contractor deduct PT if Payment is being delayed.
While on the other hand payments are not being released due to absence of PT challan.Is this fair on part of Principal employer?
16th September 2018 From India, Vadodara
@Learned Bijoy
Very true.
Your contract with principal employer should cover this aspect of period by which monthly bills are to be cleared.
Since PT is not a big amount per person,that much of reserve will be required by all contractors.
16th September 2018 From India, Pune
Dear Nathrao
Greetings
Thanks for your response. Does it mean that the contractor, based at Bangalore shall deduct PT and remit to the Chennai Tax authorities since the contract workers are working in Chennai.
B.Saikumar
Navi Mumbai
16th September 2018 From India, Mumbai
Contractor based at Chennai will have to deduct PT as he is paying workers in Chennai.
PT amount will necessarily get deposited in Chennai itself.
Other learned members may comment on this aspect.
16th September 2018 From India, Pune
interstate contract may be for short period, not for FULL MONTH or longer
if the contract is for FULL MONTH or longer, then the contractor has to open branch in the state of principal and make compliance, as state labor laws are prominent always
17th September 2018
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