Professional Tax Differences Across Regions in India: How Does It Affect Employees?

If a company has 15 regional offices in India, do professional tax deductions differ for employees from one region to another, or will PT deductions be similar to the company's head office location?

Hi,

Professional tax differs for different regions. Some states deduct professional tax on a half-yearly basis. It is essential to verify this with the state government's professional tax rules.

Thanks,
Vaitheeswaran S

Hi,

Yes, it definitely differs. My query is: is it mandatory to follow the region-wise PT deduction, or is it okay to follow the PT rules of the state where the head office is located?

Regards,
Jyoti

You have to follow the region-wise PT (as applicable to that state). Professional Tax is deducted as per rates applicable to the state where the employees are working.

I hope you got clarified.

Thanks,
Vaitheeswaran S

Dear Vaitheeswaran and Jyothi,

The P Tax is governed and levied by the states and not the central government. Hence, it is mandatory to follow P T region-wise.

To clarify, Jyo, it is immaterial for the P Tax authorities where the Head Office is situated. However, if the employees are on the rolls of the Head Office, then the P Tax can also be from the region where the Head Office is situated.

This means that employees working in other regions are on temporary assignments from the Head Office, and all the laws applicable to the Head Office will be applicable to the employees.

Hope this clarifies.

Regards,
Dhinakaran

Hi,

The applicability of PT will definitely come under the purview of the local act. However, when the organization does not have any place of business and employees are deputed to client locations, the applicability of the act depends on where the salary is being paid. Additionally, for the employer to get registered, they should have a shop act/trade license, which are mandatory requirements. When employees are deputed, the question of applying for these licenses does not arise. Therefore, it is desirable to deduct the tax from the place where the salary is being distributed instead of avoiding tax payment.

Regards,
gk

Hi,

Can somebody give me a link for professional tax slabs and applicability? If an employee holds the position of a trainee, I suppose that he does not need to pay professional tax. However, I am not able to find any links about that.

Regards,
Ashwini Kumar

Dear Mr. Dhinakaran,

Could you please provide the details of the PT applicability Rule and Section if the employees are on the rolls of the Head Office? In that case, can the Professional Tax also be paid by the region where the Head Office is situated? This information would be very helpful to me.

Thank you.

GBI