Hi All,
I am working with a US-based MNC, and we have our office in Delhi/NCR. I have a query regarding the applicability of professional tax in Karnataka.
1. We have one employee who is working for our company, but he is not coming to the office and is working from his home, based in Bangalore (Karnataka). In this case, do we need to deduct professional tax from the employee or not? Because we do not have an office in Karnataka.
2. Also, please clarify if there is any income tax liability arising (in terms of perquisites) if the employee is not coming to the office and is working from home.
I am waiting for your valuable inputs.
Regards, Manish Aneja
From India, Delhi
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I am working with a US-based MNC, and we have our office in Delhi/NCR. I have a query regarding the applicability of professional tax in Karnataka.
1. We have one employee who is working for our company, but he is not coming to the office and is working from his home, based in Bangalore (Karnataka). In this case, do we need to deduct professional tax from the employee or not? Because we do not have an office in Karnataka.
2. Also, please clarify if there is any income tax liability arising (in terms of perquisites) if the employee is not coming to the office and is working from home.
I am waiting for your valuable inputs.
Regards, Manish Aneja
From India, Delhi
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Dear Manish, My response to your query 1 - Since employee is based/ residing in that state hence PT needs to be deducted. Shakti
From India, Surat
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From India, Surat
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Hi Manish,
1. As the employee is on the payrolls of the company and the company is having its registered office in Delhi, it doesn't matter if he works from home or office. You don't need to deduct professional tax as PT is not applicable in Delhi/NCR.
2. If any of his household expenses eg. electricity bill, maintenance bill, etc. are being paid by the company directly or reimbursed to him, then it will be termed as perquisite and taxed accordingly. Otherwise there is no perquisite, hence no income tax liability.
Please let me know if I can help you any further.
Regards.
Manager
TopSource Global Solutions
About Topsource: Topsource is a global service provider of end-to-end Payroll, HR, Accounting and Administrative Services.
From India, Pune
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1. As the employee is on the payrolls of the company and the company is having its registered office in Delhi, it doesn't matter if he works from home or office. You don't need to deduct professional tax as PT is not applicable in Delhi/NCR.
2. If any of his household expenses eg. electricity bill, maintenance bill, etc. are being paid by the company directly or reimbursed to him, then it will be termed as perquisite and taxed accordingly. Otherwise there is no perquisite, hence no income tax liability.
Please let me know if I can help you any further.
Regards.
Manager
TopSource Global Solutions
About Topsource: Topsource is a global service provider of end-to-end Payroll, HR, Accounting and Administrative Services.
From India, Pune
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