Navigating Profession Tax Rules: Do We Deduct Based on Each State's Tax Slabs?

Compliance with Profession Tax Rules

I request the correct procedure relating to compliance with Profession Tax Rules. If a company's payroll for all employees working in different states is centrally processed from Mumbai (salaries paid from Mumbai), is the company required to deduct Profession Tax according to the tax slabs of the various states in the country?

Regards

Understanding Professional Tax

The Professional Tax is a tax levied by individual states and goes into the treasury of the respective corporation or city. This will vary from state to state, and in some cases, within the state, there will be variance from corporations to cities.

This tax has to be deducted according to the state, corporation, or city where the employee is working and must be paid in that location, provided you have an office at that location.

I will answer you in different words. If you are working in my state, I will certainly expect that you will pay your taxes on employment to my state, irrespective of where your salary is paid, where your headquarters are, or under whom your terms of employment are subjected.

I hope you got the answer to your query.