Correct procedure relating to compliance with Profession Tax Rules

Good morning,

I request the correct procedure relating to compliance with Profession Tax Rules. If a company's payroll of all the 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

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

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

Dear Queriest,

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 or where your headquarters are or under whom your terms of employment are subjected.

I hope you got the answer to your query.

Professional Tax (PT) with update.

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