Confused About Professional Tax Deductions for Sales Managers Across States? Let's Discuss

Professional Tax Clarification Needed

I am working for an agricultural company. Our product is sold all over India, and our sales manager works in different states. How do we deduct Professional Tax, and where should we deposit the tax amount?

Please guide me.

With regards,
K Rama Krishna

If you have any branch offices in other states, then the Professional Tax needs to be deducted based on the slab rate of specific locations, and the amount has to be paid in the respective locations.

Dear Ramakrishna,

Your Head Office can deduct the professional tax amount for all staff and pay it to the concerned panchayat/corporation office.

Manokavin

Professional tax belongs to the State Act; hence, payments should be submitted to the respective local PTO offices only. You shall not pay everything in AP/Hyderabad.

It depends on your setup. If you do not have branches or any establishment in any location, then the entire amount has to be paid in your home state.

If you have establishments, offices, or branches in any other location, the professional tax of the employees sitting at those offices (or reporting there) will need to be paid in that state.

If your appointment letter states that the person is appointed in a specific state and will work there, then it's better to pay professional tax in the state stated in his appointment letter.

You can deduct at the head office from the salary, but you will need to find someone in each concerned state to fill the challans and file the same.

The PT can be deducted at the place where the salary is generated.

Regards,
R. Rajasekar

PT deduction is based on state-wise rules and regulations. PT registration is applicable in different states. Check with the respective PT offices and enroll under the PT. Nowadays, online information is available for the same.

Regards,