Professional Tax Confusion: How to Handle Deductions for Employees in Different Cities?

Hi!

Our firm is a proprietorship located in Gujarat. Are we supposed to deduct professional tax from an employee who is posted in New Delhi (where there is nil Professional Tax), or if an employee is posted in Mumbai? Does any website provide this information?

Dear Sameesh,

For Delhi, there is no PT. For Mumbai, you have to deduct and remit PT as per the Maharashtra slab.

Before paying the PT, Biswal is correct; you should have your registration certificate in place.

Dear Roopa,

Thank you for your input. The Profession Tax office in Gujarat is requesting us to deposit the tax in Gujarat for an employee stationed in Maharashtra. Could you please guide me on any clause (preferably available on the internet) that supports your opinion that this tax is payable by us in Maharashtra?

Regards,
Sameesh

Dear Sameesh,

Please go through the Act of Gujarat/Maharashtra or any state that has enforced PT payment. Professional Tax is a source of revenue for corporations in Gujarat. You would be required to register in every Maha Nagar Palika/Nagar Palika. However, the payment is necessary only for those who work and earn in these locations, as clearly stated in the Act.

Regards