Do We Need to Pay Maharashtra's Professional Tax While Working for a Raipur-Based Company?

We are working in XYZ Manufacturing Industry based in Raipur, Chhattisgarh, with our Corporate Office located in Nagpur, Maharashtra. The company has assigned us to work at their Corporate Office in Nagpur, and as a result, we are currently stationed in Nagpur, Maharashtra.

At the end of each month, the Nagpur HR Department sends our attendance records to the Raipur HR Department for processing our salaries, which are then disbursed from Raipur.

As you may know, the Professional Tax Act is in effect in Maharashtra State. However, the Government of Chhattisgarh has granted employees an exemption from paying Professional Tax to the Chhattisgarh Government through their Notification dated 28.03.2008.

I kindly request clarification on whether "The Maharashtra State Tax on Professions, Trades, Callings & Employments Act 1975" is applicable to us. Are we obligated to pay Professional Tax to the State Government of Maharashtra, even though we are employed by XYZ Company, headquartered in Raipur?

Thank you.

According to the Professional Tax Act, you are liable to pay professional tax to the Maharashtra Government, whether your company is based in Maharashtra or outside Maharashtra. Since your company is currently doing business in Maharashtra, you are liable to pay the professional tax.

With Regards,
Vineet Deshmukh

Deputation Duration Inquiry

Is this a short-term deputation or long-term? If it is short-term, you can get away by showing that your work/posting is in Chhattisgarh, and you are here only temporarily for work.

Professional Tax on Stipend: Applicability Query

Can somebody give me information on whether professional tax is applicable if a person is receiving a stipend and not a salary? I was a salaried employee two years ago, and professional tax was deducted monthly by my employer. Since then, I have joined a professional training course, and I have been receiving a stipend for the past two years. During this time, I have not paid my professional tax, and I have now been served a notice for the same.

Please help.

Regards