Dear Friends,
I would like to know if we have to pay Professional Tax for our staff in Delhi. Are there any exceptions for Delhi? Can you guide me immediately? Please let me know if there are any such rules.
With Regards,
Shyam
From India, Mumbai
I would like to know if we have to pay Professional Tax for our staff in Delhi. Are there any exceptions for Delhi? Can you guide me immediately? Please let me know if there are any such rules.
With Regards,
Shyam
From India, Mumbai
I got the answer.
There is no professional tax in Union Territories. It can be advantageous for all companies to distribute salary on an all-India basis from the Union Territory of Delhi where tax is nil! In the state of Maharashtra, the following persons are exempt from professional tax:
1. Members of the army, air force, navy, and related auxiliary forces or reservists.
2. Persons on the establishment of defense ordnance factories.
3. Badli workers in the textile industry.
4. Persons with a permanent physical disability, including blindness.
5. Parents or guardians of any person suffering from a physical disability or mental retardation.
6. Women exclusively engaged as agents under the MPKBY scheme of the Directorate of Small Savings.
7. Persons who have completed the age of 65 years.
From India, Mumbai
There is no professional tax in Union Territories. It can be advantageous for all companies to distribute salary on an all-India basis from the Union Territory of Delhi where tax is nil! In the state of Maharashtra, the following persons are exempt from professional tax:
1. Members of the army, air force, navy, and related auxiliary forces or reservists.
2. Persons on the establishment of defense ordnance factories.
3. Badli workers in the textile industry.
4. Persons with a permanent physical disability, including blindness.
5. Parents or guardians of any person suffering from a physical disability or mental retardation.
6. Women exclusively engaged as agents under the MPKBY scheme of the Directorate of Small Savings.
7. Persons who have completed the age of 65 years.
From India, Mumbai
Dear Shayam, Thanks for the above valuable information. But can you please tell what is the source of this information. In which Act we will find the above information more..... Regards, Jaya A.K.
From India, Bangalore
From India, Bangalore
Everyone here, please note the correct term. It is not "professional tax," it is PROFESSION TAX.
And, Shyam, thanks for the info. It shows you made efforts in finding an answer to your query, unlike so many others on this site.
Prashant
From India, Delhi
And, Shyam, thanks for the info. It shows you made efforts in finding an answer to your query, unlike so many others on this site.
Prashant
From India, Delhi
Prashant,
As long as we keep spoon-feeding people, those inclined that way will not bother to find answers for themselves. It is also frustrating to find people not giving enough information about themselves and/or about the topic on which they raise questions.
Simhan
A retired academic in the UK
From United Kingdom
As long as we keep spoon-feeding people, those inclined that way will not bother to find answers for themselves. It is also frustrating to find people not giving enough information about themselves and/or about the topic on which they raise questions.
Simhan
A retired academic in the UK
From United Kingdom
Hi,
As far as I know, all details mentioned by all our HR friends are correct and true. But at the same time, if people who are working with outsourcing companies and are placed with clients in cities or towns like New Delhi (or any union territory) with the primary employer in cities like Mumbai (or any city where PT is applicable), PT deduction can be done if the salary is processed from a single location where PT is applicable and as per the structure specified in that state. The same is applicable for ESIC as well, but the deduction rate would remain the same in all states.
Thanks,
Milind
From India, Mumbai
As far as I know, all details mentioned by all our HR friends are correct and true. But at the same time, if people who are working with outsourcing companies and are placed with clients in cities or towns like New Delhi (or any union territory) with the primary employer in cities like Mumbai (or any city where PT is applicable), PT deduction can be done if the salary is processed from a single location where PT is applicable and as per the structure specified in that state. The same is applicable for ESIC as well, but the deduction rate would remain the same in all states.
Thanks,
Milind
From India, Mumbai
Shyam,
Apt posting for the query. But do you know why professional tax is not applicable in UT? Or for that matter, even excise duty is exempted in UT. Do you know why? If you know, tell the forum; else I shall post the answer tomorrow. (In fact, it's very interesting to know such simple things.)
Gopan
From India, Kochi
Apt posting for the query. But do you know why professional tax is not applicable in UT? Or for that matter, even excise duty is exempted in UT. Do you know why? If you know, tell the forum; else I shall post the answer tomorrow. (In fact, it's very interesting to know such simple things.)
Gopan
From India, Kochi
Dear Shyam,
Please take advice from your Sales Tax Consultant. As per my knowledge, if the salary of employees is being processed from Maharashtra, you have to pay Professional Tax (P.T.). Actually, the payment of P.T. is to be deducted from employees' salaries, but it is the responsibility of the company to deduct the amount and make the payment. Please check where you are booking the salary amount in the accounts.
D V Gosavi
From India, Pune
Please take advice from your Sales Tax Consultant. As per my knowledge, if the salary of employees is being processed from Maharashtra, you have to pay Professional Tax (P.T.). Actually, the payment of P.T. is to be deducted from employees' salaries, but it is the responsibility of the company to deduct the amount and make the payment. Please check where you are booking the salary amount in the accounts.
D V Gosavi
From India, Pune
Dear Frinds What you think about Durg’s 1973 posting............ Who will be able to give a final word regarding this and close the chapter? Regards Carmel
From India, Mumbai
From India, Mumbai
Dear Shyam,
It would be better if you visit the SALES TAX website of Maharashtra. On the very first page, you will find details about Profession Tax, Total Act, Regulations, etc. I hope this information will be helpful to you.
D.V. Gosavi
durg_gosavi@rediffmail.com
From India, Pune
It would be better if you visit the SALES TAX website of Maharashtra. On the very first page, you will find details about Profession Tax, Total Act, Regulations, etc. I hope this information will be helpful to you.
D.V. Gosavi
durg_gosavi@rediffmail.com
From India, Pune
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