Understanding Professional Tax: Should It Be Paid by Location or Company?

Greetings to all, can anybody clarify whether the professional tax of Rs 2,500 per annum should be paid location-wise separately or company-wise?

Regards,
Veda

Professional Tax in Maharashtra

Professional tax varies from state to state. In Maharashtra, it is as follows:

- Up to ₹5,000: Nil
- ₹5,000 to ₹10,000: ₹175 per month
- ₹10,001 and above: ₹200 per month
- In the month of February: ₹300 instead of ₹200

As rightly pointed out by Somani, professional tax slabs vary from location to location. Hence, you need to pay professional tax based on the location where the person is working. The finer element of the matter is that the local body receives the money as it provides the infrastructure to facilitate the functioning of the office in the respective location.

Regards,
M.V. Kannan

I have a little confusion in my question. I am inquiring about the Professional Tax paid to the Local VAT Office once a year by the Company, not the monthly Professional Tax paid by employees.

I think there is no confusion in your query, but in the answers. In Karnataka, the professional tax of ₹2,500 per annum is to be paid for each location situated within Karnataka. In other words, if a Pvt. Ltd. or Ltd. company has no branch offices within Karnataka, such a company has to pay ₹2,500 per year as an employer registration fee. If any Pvt. Ltd./Ltd. company has different branch offices within the state of Karnataka, in such cases, the company will pay ₹2,500 as an employer registration fee for each location.

From the answers, it seems most of the respondents are confusing employee contribution of PT and Employers' registration fee. You could have mentioned the location of your office to avoid the above confusions.

Regards,
Nair

[QUOTE=VEDA UDUPA;1389551] Dear All, Little confusion in my question, I am asking about Professional Tax paid to the Local VAT Office, once a year by the Company. Not monthly PT by employees.

Clarification on Company Professional Tax

Company professional tax has to be paid separately state-wise. In Maharashtra, you need to pay only for your main branch where you got PT enrollment done; no need to pay location-wise. In other states such as Gujarat, PT is collected by the local corporation of the city. In this case, you need to pay location-wise company professional tax. The rate of Company PT differs from state to state; in Gujarat, you need to pay 2000 p.a. In other states such as Tamil Nadu, you need to pay half-yearly Company PT. For further details, contact [Email Removed For Privacy Reasons].

Regards

Would like to know how I can pay the company Professional Tax paid in April once a year (Rs. 2500) for a Pvt Ltd company. I am not referring to the PT paid by employees that the company pays every month. Can it be paid online?

Online Payment Options for Professional Tax

[e-PRERANA](http://pt.kar.nic.in/) has the option of making payments quarterly or monthly and the option to submit annual returns. I don't see the option for yearly payment. Please help.