Navigating Professional Tax: How to Handle PT for Employees in Multiple States?

Hi, I would like to know if it is mandatory to pay Professional Tax (PT) for employees in other states. Currently, we are based in Telangana and are paying PT for both Telangana (TG) and Andhra Pradesh (AP). We have 3 to 4 employees working in seven other states. We are deducting PT based on the Telangana slab and remitting it in Telangana, as we do not have registration in those specific states. However, for some states like Delhi and Chhattisgarh, we are not deducting PT. Can you kindly suggest a way for us to accurately pay the correct amount of PT for our employees across different states?

Hi, you need to pay Professional Tax (PT) as per the respective state's PT slab. If you are not registered in the respective states, you need to register for PT with the respective authorities. Paying PT based on the Telangana state slab is not correct or valid. If PT is not applicable in certain states, then only those employees can be exempted from PT.

Professional Tax Payment Across States

You are required to pay PT in each state. However, the problem is that you will not be able to do it unless you have an office there and have a shop & establishment license. The requirement of a local office is a requirement that every state has in the registration process.

You can take a very rational view and ignore the PT due for those working in other states, as there is very little chance of the governments coming to you for it when you do not even have an office there.

This is a grey area and one that I have not been able to find a solution for.

Professional Tax Payment Requirements

Professional tax is required to be paid in accordance with the norms in force where the person is employed and receives a salary. It is unnecessary to remit professional tax on behalf of such employees in Telangana.

Considerations for Professional Tax (PT) Compliance

You have to take note of two things: 1) Your firm's registration and payment of relevant PT for the firm (for carrying out a 'profession/trade or both') and 2) PT in respect of employees working in those states. While the first point should be coterminous with registration under GST of the firm itself, if applicable, as there could be both purchases and sales (invoicing) in both states where business is conducted. It is also required to consider the quantum of turnover and the number of employees. Please check with the PT Acts of the respective states and do the needful.

Hi, yes, PT is a state subject and needs to be registered. The payments should be made according to the state PT slabs.

Thanks

Hi Suraj, How can someone register in a state where they do not have an office but just have their sales or service staff working in that state? That is a major problem.