Transferring Employees Across States: How Do You Calculate Profession Tax?

When any employee is transferred from one branch of the organization to another branch on any day of the month, and the branch is located in a different state, how will the P.TAX be calculated? The Profession Tax rate varies from one state to another. How do I calculate the Profession Tax?

Thank you.

There are no issues; the payment can be made to the applicable state, considering the "Transfer Date" (with effect from) and the last processed payroll month.

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My point is that suppose one employee is transferred from one branch located in Kolkata on 15/06/2012 to the Mumbai branch in the same month. At the time of generating pay for the same month, how will I calculate the P.Tax because both states have different P.Tax slabs, and P.Tax challan is deposited on a monthly basis? Will the P.Tax be calculated as half of the earlier branch and half of the latest branch?

Normally, the PT is not bifurcated based on the transfer date. It is to be paid in the next state in which one is transferred. You need to check in which state an employee is working at the time of processing salaries, i.e., at the end of the month. The applicable PT law of that state shall be applicable for the entire wages, not proportionately.

Can anybody please share with me the calculation of Professional Tax (PT) in Andhra Pradesh?

PT Slabs for Andhra State

Please find the PT slabs of Andhra State:

- Up to Rs.15,000/- = Nil
- Rs.15,001/- to Rs.20,000/- = Rs.150/-
- Rs.20,001/- and above = Rs.200/-

Regards