Is the principal employer liable to deposit the contribution of Professional Tax to the relevant authority if their vendor fails to deposit the same even after deduction from their workers?
The principal employer is liable to pay all statutory dues that their contractor fails to deposit. However, there are circumstances where this may vary, so it is better if you provide all details when you post your query.
The Professional Tax is a liability of the establishment engaging employees to work in a particular state. The Principal Employer has no liability to ensure compliance of the employees of its contractor. However, the Principal Employer can insist that the contractor register itself with the Professional Tax authorities.
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