Professional Tax Confusion: Should We Pay in Bangalore or Across India?

I have a doubt regarding the payment of Professional Tax. We have our corporate office in Bangalore, and we process salaries for the entire pan India. Do we need to pay the Professional Tax in the concerned states or in Bangalore itself? Please clarify for me.

Kind Regards,
Shreyas

As per the Professional Tax Act, you should deduct the tax pertaining to a particular state and remit the same to the respective state only.

Profession Tax comes under the control of Corporation/Municipal authorities; hence, it should be remitted to the respective corporations wherever you have a branch office set up. In case you are looking for any professional support in terms of Profession Tax Registration/Profession Tax remittance, please write to us.

Hi Pragnaa HR Compliance Services - PAN India & Jeevarathnam, thanks for your valid suggestion, but my doubt is what if the salary is being processed and paid from the Corporate. The salary accounts are also maintained at a particular bank by the corporate only. However, the individuals will be working at different branches.

Regards,
Shreyas

You can process the employees' salaries centrally at the corporate office and then pay them. Please note that the Profession Tax should be paid to the local corporation where you have a branch office set up.
Regards

First of all, your establishment should be registered under the Professional Tax Act with the Commercial Tax Officer wherever your branch is located by furnishing all the details, and then they will give you a Certificate. For PT deduction, it is based on the salary structure depending upon the state. Ensure that any employee is falling within the limits, then deduct the PT from their salary and arrange to remit the same to the local LVO/VAT department. If centralized payroll is maintained, it does not matter, and simultaneously maintain the Wage register for your branches, which will facilitate all aspects, including labor laws. Mere centralized paysheet reasons cannot exempt you from paying Professional Tax. Failure to do so may lead to consequences later on. The procedure for remittance is clearly explained by a contributing member in this thread.

With Regards,
Adoni Suguresh
Sr. Executive (Pers and Adm)
Rtd Labor Laws Consultant