Confused About Professional Tax Deductions for Employees in Different States? Let's Discuss!

Some employees are located in Madhya Pradesh's local office, but our organization's head office (Registered Office) is in Odisha, and the Professional Tax registration is in Odisha. Please guide us on what the rate of Professional Tax deduction should be, and whether it will apply in Odisha or Madhya Pradesh for those employees.

Hi, you need to follow the Professional Tax slab of the respective location (Madhya Pradesh) and your Head Office location (Odisha). The Professional Tax slab of Odisha can't be followed.

Professional Tax Applicability

PT is applicable as per the state. Any employee whose work location is in MP needs to remit to MP only.

Yes, the professional tax should be deducted as per the respective work location only. Here, you should deduct as per the MP PTax slab.

Professional Tax Applicability in Odisha and Madhya Pradesh

The Professional Tax of Odisha is applicable to employees located in Madhya Pradesh because their payroll is processed in the Registered Office (Odisha). The Professional Tax of Madhya Pradesh is only enforceable in cases where an establishment has its registration of shops and commercial establishments in Madhya Pradesh.

Professional Tax should be deducted based on the location of the employees' offices, not the registered office. For employees in Madhya Pradesh, the Professional Tax rate applicable will be as per Madhya Pradesh's regulations, even though your head office is in Odisha. Ensure compliance with the local tax laws where the employees are physically working.

Thank you all for the responses. However, our Professional Tax Registration is not in Madhya Pradesh, so it's not possible to follow the rule of MP. It would not be feasible for us to register there for just a short-term project.