Navigating P.Tax and Labour Welfare Fund Deductions for Remote Sales Depot Employees: Which State Applies?

Dear all members of Cite HR,

I am gainfully employed as a Compliance Executive at the Eastern Regional Office in Kolkata, West Bengal. There are 13 employees who report to the office daily. We also have Sales Depots in Assam, Manipur, Odisha, etc., which are not owned by our establishment. The staff of these Sales Depots does not attend the Kolkata office but directly reports to the Area Head in Kolkata on the phone weekly or fortnightly.

The entire salary process across states is managed centrally at the Registered Office located in Mumbai, Maharashtra. The Kolkata office has a staff strength of 13 employees. If we consider the employees in the Sales Depots regions, the total employee strength would be over 30.

We do not deduct Professional Tax (P.Tax) or contribute to the Labour Welfare Fund for Sales Depot employees as we do not have our own business premises. However, it is imperative and mandatory to deduct P.Tax contributions and make Labour Welfare Fund contributions for Sales Depot employees.

If deductions are to be made, which state's contribution should be taken into account? Your prompt reply would be greatly appreciated.

Thank you.

Profession tax, being revenue for the local administration where an employee works, should be paid to that local administration only. Similarly, any Welfare Fund other than the Central Welfare Fund should be paid to the respective state only.