Whether the employer should deduct professional tax on wages earned by daily wage labourers in maharashtra state?
From India, Mumbai
Partner - Risk Management
Chief Accountant, India


If the earnings of the daily wage workers are over the specified monthly salary limit, then you will need to deduct and put it to the government.
From India, Mumbai

It is simply like Income Tax and TDS if the total payment made to an employee exceed the monthly prescribed limit of salary. How you paid is immaterial.
You have to go for assessment after the year and at that time total salay/wages paid during the year will be bifurcated as per the Professional Tax chart. There in you will have to show monthly turnover of employees. Remember total employees should tally per your Muster Roll including Directors. Then it will be eliminated as to their hold Enrolment and have paid their Annual Payment. If they have not paid that you are required to deduct the amount from the Directors Remuneration if they are paid.
So when you prepare the chart it should tally with your monthly return-cum-challan you submit to the department.
It is simply if Interest in Bank FD etc is minimum exemption. When you place FD either you submit Form H/G. If not then the bank calculate the Annual Interest accrued and start deducting TDS. The same is the case of Professional Tax deduction. But if in one month they may come under deduction due to earning for full month, and another they may not come under due to lesser earning but all should be shown in the return.
Less than Minimum..NIl No of employees.
First Slab Rs.. .to Rs. ........@Rs...........===
Second Slab Rs. Rs.....@Rs..........===
like that till the maximum
Total employees every month should be allocated as per the slab and it should tally.

From Saudi Arabia

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