Professional Tax Dilemma: Do We Need to Pay PT for Remote Employees in Different Locations?

I work in an organization that is registered in Delhi, but we do have a few employees who are working in locations where Professional Tax (PT) is applicable. My question is, as we don't have offices at any of these locations, do we come under the applicability of PT.

Professional Tax in India

Almost all the states in India, including Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Orissa, Assam, Tamil Nadu, and Tripura, to name a few, levy professional tax, apart from Delhi. Although the Municipal Corporation of Delhi tried to impose a professional tax on individuals earning income in Delhi from various sources, the proposal was rejected by the Standing Committee of the Municipal Corporation of Delhi. So, the working professionals in Delhi don't have to pay any professional tax. No professional tax slab rates are applicable for Delhi.

Hi Shalini,

Few of my employees are working in locations like Bangalore and Chennai where PT is applicable, but we don't have a registered office there. My question is, are we required to deduct PT from these employees who are working in Bangalore and Chennai even though we don't have registered offices in those cities?

Regards,
Tony Tom

In my considered opinion, the company is required to make arrangements to deduct the professional in accordance with the norms the employees are working/posted and remit the same to the account of the authority concerned.

While starting any commercial activity, you must have permission from local authorities. You have to follow the rules of state authorities whether your main office or registered office is at another location. You are registered with those authorities by using the registration certificate of that state, i.e., Shop Act license or Factory Act license.