Confused About Professional Tax Payment for Employees in Different Cities? Help Needed!

Hello Everyone, We are a start-up IT company in Tamil Nadu. Our company was registered with an address in Tuticorin, Tamil Nadu. However, we have rented offices in Chennai and Bangalore, and a few people are working from these two cities. We don't have any branch in Tuticorin as it is an interior part of Tamil Nadu, and we don't want to have employees from there.

Company Background

We started our company in the financial year 2012-13, and until now, we have only been deducting TDS for our employees. However, I was informed by a government official that we need to deduct professional tax for employees every six months, and the same has to be paid to the local corporation or municipality. I managed to search online and found the appropriate tax slabs.

Question on Professional Tax Payment

Here is our question: As per the company registration certificate, the registered company address is in Tuticorin, but our employees are working in Chennai and Bangalore. So, where and how do we need to pay this professional tax?

Your answers would be really helpful for a start-up company like ours. Thanks in advance.

For the employees who are working in Chennai and Tuticorin, you shall pay in Chennai. However, for the employees in Bangalore, you should approach for separate registration in Bangalore. Even the tax amount should be paid in Bangalore only. Being PT as a State act, the tax amount should be paid in the respective state only. In Karnataka, PT should be collected monthly and should be deposited on a monthly basis only.

We would like to clarify your doubts on PT.

Professional Tax in Tamil Nadu

As far as Professional Tax is concerned in Tamil Nadu, the following payments are to be made in the respective corporations or municipalities:

• **Professional Tax Employees Contribution** - This has to be remitted where you have a branch or employees in a particular location as per the slab.

• **Professional Tax Employer Contribution** - This has to be remitted where you have a branch or employees in a particular location, based on the highest slab rate.

• **Company Tax** - This has to be remitted where you have registered your company and obtained the Certificate of Incorporation. The constant rate is Rs. 1000/-.

Since you have not engaged employees in Tuticorin, you have to pay only the Company Tax amount in Tuticorin. The rest of the contributions should be paid in Chennai.

To remit the PT payment in Chennai or Tuticorin, you should register your branch or corporate office in the respective locations. Once you get the registration certificate under Professional Tax, you can start remitting the payment once every six months.

PT Remittance Periods

There are two half-yearly periods in PT remittance:

1st Half - April to September (should be paid on or before 15th September)

2nd Half - October to March (should be paid on or before 15th February)

We hope we have clarified your doubts. As a consultant, we do support registration and remittance under the Professional Tax all over Tamil Nadu. If you are looking for our support, please write to us at the given email ID.

Please refer to our Newsletter to know about the PT slab rates in different locations.

Regards.

Thank you so much 'Pragnaa HRCS - Tamil Nadu & Pondicherry'. Your answers made my Google search halt. I never thought I would get as clear information as yours when I posted this question. Thanks 'Jeevarathnam P' for taking the time to post your message. I will revert to you guys in case of any other doubts. Much appreciated.

Regards

For a company, professional tax payable in Tamil Nadu includes three types of professional tax:

Types of Professional Tax Payable

1) Professional tax for Directors (₹2190 yearly)
2) Staff (₹2190 yearly as per salary slab)
3) For the company (₹2190 yearly)

Now, the professional tax office is asking to pay company capital tax as per slab from when the company incorporation was done. Is that true? Can you please clarify this? May I have the details of all payments to be made in professional tax for the company?

Regards

Yes, Company Tax needs to be paid as per the slab once every 6 months. The following payments are required to be made once every 6 months. The relevant notifications/slab rates for PT & Company Tax are attached.

Required Payments

1. Employer's Tax for the highest slab - Rs. 1095/-
2. Employees' Tax based on the gross earnings of the last six months
3. Company Tax as per the table

It is not necessary to pay separately as Director PT; that can be included in the employees' list when required.

Please revert if any clarifications are needed.

Regards.

Thank you for your response. In the professional tax office, they are asking us to pay company capital tax as per the slab from the date of the company's incorporation. Is that true? Can you please clarify this?

Attribution: https://www.citehr.com/435691-need-i...#ixzz2z3Ab9oG0

Regards

Yes, the Company Tax needs to be paid from the date of inception or when the certificate of incorporation is obtained. However, it can be paid without any penalty involved.

Procedures for Registering a Company Under Professional Tax in Tamil Nadu

Can anyone help me explain the procedures to register a company under Professional Tax in Tamil Nadu? Also, kindly assist me in understanding the mandatory forms and documents needed to be submitted for registering PT in Tamil Nadu.

Regards,
Prabhakaran.J

Dear All,

We have registered our company under ROC-Bangalore and have a depot in Chennai. We have paid PT (employee as well as employer contribution) to the Chennai Corporation since we have employed a few employees here in Chennai.

Do we need to pay company tax to the Chennai Corporation even though we are registered under ROC-Bangalore?

Can you please help with an abstract of the rules? Thanks in advance.

Regards,
Solaiappan G

Hi,

Please guide me on how to file the Half-Yearly return of Professional Tax (PT) in Chennai, Tamil Nadu. I have drafted the details but am unsure of the further process and how to prepare the challan and where to submit it. I kindly request you to check and confirm whether the details are correct and also to guide me on the next steps.

Can we submit the return online?

Paying Professional Tax in Chennai

There is no option for paying professional tax (PT) online in Chennai. If it is the first-time payment, your establishment needs to be registered under the PT Act at the Corporation of Chennai. They will allot a new PT Assessment Number to your establishment (unique), and you can start remitting the payment once every six months.

If already registered, you can make three different cheques payable to "The Revenue Officer, Corporation of Chennai" and remit the payment to the respective zonal office.

In case you need any support, please write to [Email Removed For Privacy Reasons].

Regards