1
Professional tax is payable on the salary earned by an employee. Recovery towards notice period is a payment made to an employer in lieu of not serving the notice period. So no PT would be leviable on it, I am not aware of any clarificatory circular to the opposite effect.
From India, Mumbai
From India, Mumbai
Dear Vinodh,
Professional Tax is the tax levied on the gross income earned by everyone from his/her occupation within the jurisdiction of the concerned Local Body.
As Mr.KK!HR pointed out, recovery of notice period salary is a deduction from the earnings of the concerned employee. Therefore, logically and legally it cannot attract P.T.
From India, Salem
Professional Tax is the tax levied on the gross income earned by everyone from his/her occupation within the jurisdiction of the concerned Local Body.
As Mr.KK!HR pointed out, recovery of notice period salary is a deduction from the earnings of the concerned employee. Therefore, logically and legally it cannot attract P.T.
From India, Salem
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GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx
Notice period.jpg