Professional Tax Dilemma: How to Handle PT for Employees in Karnataka Without a Local Office?

Professional Tax Applicability Without a Branch Office

I would like to know if there is no branch office in the state where the employees are based and performing their duties, in such a scenario, will the professional tax be applicable?

For example, company ABC has its head office in Mumbai and employees across India. The company has branch offices in Gujarat and West Bengal but not in Karnataka. There are sales employees who are local and hired to operate only from Bangalore (Karnataka).

Now, for Karnataka, is the company liable to deduct professional tax from Karnataka employees as per the Karnataka PT slab where there is no office? If yes, how will the company apply for PT registration in Karnataka without a branch office?

Alternatively, should the company deduct PT as per the Maharashtra slab and deposit the same with the Maharashtra authority? Or should the employer not deduct the PT since there is no branch in Karnataka?

Kindly shed some light on this matter.

Regards

To the best of my belief, you need to register for Professional Tax (PT) in Karnataka and deduct the PT for all the employees working in Karnataka. The same amount has to be deposited with their municipal corporation.

Thanks for your response. I would like to bring to your kind notice that there is no branch office in Karnataka. For PT registration, the local office address is required. Kindly suggest.

Shrikant has aptly answered, "You can take the help of any employee of yours working in Karnataka to provide the documents required for such registration."

Please feel free to reach out to any of your employees based in Karnataka for assistance with the necessary documentation.