Navigating Professional Tax: Should I Deposit Locally or Centrally for Branch Employees?

Hi Guys, I am working with an Ahmedabad-based company operating in the educational industry. We have branches at different locations, i.e., mostly rented premises, and have a number of employees working there. All the employees are recruited from Ahmedabad only, and all their payouts are also made from Ahmedabad HO.

Professional Tax Query

Now, if I deduct the professional tax from all the employees working outside Ahmedabad and deposit the same with Ahmedabad Municipal Corporation (Professional Tax Collecting Authority), will it suffice? Or do I need to deposit the professional tax at various branches and should accordingly opt for registration for professional tax in the respective state?

So, if our administrative office in Bombay receives an inspection from the Bombay Municipal Corporation, and we claim that it is being managed from Ahmedabad, will that be sufficient? Right?

It has to be remitted to the respective Corporations where you have physical branch offices in other locations. It is not justified that Professional Tax is paid in a single location where you have your head office. If you don't have the branch offices set up in other locations, then you can remit the payment based on your head office location.

Regarding Registration

Yes, you have to go for separate registration under the PT if you have branches in other locations, whether it is a rented or owned building. Please write to us in case any professional support is required.

Regards.