Professional Tax Confusion: Are Delhi Branch Employees Eligible if HQ is in Mumbai?

I am working as an HR Executive in a reputed company in Mumbai. I need some clarification regarding Professional Tax. If the Head Office is located in Mumbai and there is a branch office in Delhi, then are the Delhi office employees eligible for Professional Tax?

Kindly advise.

Regards,
Shubhada
[Phone Number Removed For Privacy Reasons]

The State PT slab varies from state to state. For the Delhi office, there is no need to deduct PT.

Regards,
Ratikanta Rath

Regarding your query on the subject of Professional Tax, it is important to note that this tax is governed by State Acts and is intended to collect taxes from salary/wage earners, professionals such as doctors, C.A.s, and industrial establishments. The collection of this tax is carried out by various government departments, including Sales Tax, Commercial Tax, and Municipal Authorities, in accordance with the laws of each state, with the aim of contributing to the development of local areas.

It is essential that you ensure compliance with the deduction of tax from employees at both the Mumbai and Delhi offices, based on the slab rates stipulated by the respective state laws.

Regards,
V R RAO PULIPAKA

The HR office states that the local law will be applicable here. You have to deduct Professional Tax (PT) as per the Mumbai slab, which is as follows:
- Up to ₹10,000: ₹175
- More than ₹10,000: ₹200

Regards,
Seema

Dear Shubhada,

Professional Tax is based on the state where the remuneration of the Delhi staff is processed. If the payroll is maintained in Mumbai, then you will have to deduct the Professional Tax in Mumbai. However, if the payroll is managed through the Delhi accounts of your company, then you don't have to deduct it in Mumbai; it will be as per the Union Territory Act.

Regards,
Hruday
[Phone Number Removed For Privacy Reasons]

Dear Seema Madam,

I'm very confused about this issue because some seniors have suggested that there is no deduction to be made for the Delhi Office. Kindly advise?

Shubhada
[Phone Number Removed For Privacy Reasons]

Related to your query, I would like to advise you that if the employees who are working in the Delhi Office have their names on the muster roll and salary roll in the Mumbai Office, and if the accounts of the salaries paid are booked in the Mumbai Office, you must deduct their Professional Tax as per the applicable slabs in Maharashtra. That is, up to 5000 - Nil, from 5001 to 10000 - Rs. 175, and from 10001 onwards - Rs. 200 (in Feb- Rs. 300) = Total max up to Rs. 2500 in a year.

If the employees are on the Delhi payroll, you need to deduct the P Tax as per the slabs decided for Delhi (I don't know the slabs exactly). But in your case in Mumbai, it is advisable to proceed with P Tax deduction without any hesitation.

Regards,
Atul