We are a new Pvt Ltd company, and a majority of our employees are working remotely. We have only one branch in Odisha. We have registered for PT but wanted to check if our employees are based out of a state where PT is not eligible, like Chhattisgarh. How should we handle this scenario?
Please share some government documents citing this case.
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1Please share some government documents citing this case.
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Professional tax for remote employees
Professional tax applies to people working in a particular state, essentially in a specific office. If you have employees working remotely, then professional tax is not payable for them in the location where your headquarters is situated.
You may be required to pay their professional tax in the state where they are actually working. However, the legislation was not crafted with work from home (WFH) in mind, making this area uncharted territory. It may not be possible to register for professional tax in a state where you do not maintain an office, so it is essential to review the definitions and provisions outlined in the relevant state laws to determine the appropriate course of action.
From India, Mumbai
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Professional tax applies to people working in a particular state, essentially in a specific office. If you have employees working remotely, then professional tax is not payable for them in the location where your headquarters is situated.
You may be required to pay their professional tax in the state where they are actually working. However, the legislation was not crafted with work from home (WFH) in mind, making this area uncharted territory. It may not be possible to register for professional tax in a state where you do not maintain an office, so it is essential to review the definitions and provisions outlined in the relevant state laws to determine the appropriate course of action.
From India, Mumbai
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So you suggest skipping PT for them or there is any other portal where we can raise the concern. My CA also is not sure how to handle this.
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Professional Tax Applicability
For those in states where there is no PT applicable, you definitely don't need to pay it.
State-Specific PT Acts
For others, the matter has not been tested yet by courts. So, read the PT acts of each state and then decide.
Yes, your CA will not have the answer to this...
From India, Mumbai
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For those in states where there is no PT applicable, you definitely don't need to pay it.
State-Specific PT Acts
For others, the matter has not been tested yet by courts. So, read the PT acts of each state and then decide.
Yes, your CA will not have the answer to this...
From India, Mumbai
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For those in states where there is no PT applicable, definitely you don’t need to pay it. -> hope this will not create any issue as per the law.
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Professional Tax Deduction Responsibility
No deduction towards PT needs to be made where the state where they are employed does not fasten the responsibility on the employer.
To my knowledge, this situation arises not because there is no PT, but because the system of the local body (Municipal Corporation/Municipality/Panchayat) collects the tax directly from the employee concerned. Kerala and, perhaps, Tamil Nadu follow this pattern.
From India, Kochi
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No deduction towards PT needs to be made where the state where they are employed does not fasten the responsibility on the employer.
To my knowledge, this situation arises not because there is no PT, but because the system of the local body (Municipal Corporation/Municipality/Panchayat) collects the tax directly from the employee concerned. Kerala and, perhaps, Tamil Nadu follow this pattern.
From India, Kochi
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Employees' State Insurance General Regulations 1950.pdf
Employees' State Insurance General Regulations 1950.doc
Income Tax Calculator for C.G.Employees & others State Employees Financial Year 2011-2012.xls
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(Fact Checked)-[response] Your CA can verify with the Professional Tax authorities in Chattisgarh for guidance. It's crucial to comply with the respective state laws. Thank you for seeking clarification. (1 Acknowledge point)