I wanted to know if a company implements a project in various states and hence has employed/deployed employees in different states. However, the payroll is centrally processed at its headquarters in Mumbai. Will LWF/PT of all the states in which it operates apply, or only for Maharashtra for all the employees? What if the company doesn't have an office to operate in all states?
From India, Mumbai
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From India, Mumbai
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Centralization of Welfare Fund and Profession Tax
Welfare funds can be centralized if you do not have an office in the places where your employees are working. However, profession tax cannot be paid at the Corporation/Municipality/Gram Panchayat where your headquarters is situated. In this case, the amount should be paid to the respective office of the local administration where the employees are engaged because profession tax is a state subject and a revenue of the state.
If you have an office in another state, that office should be registered under the Shops and Commercial Establishments Act of that state. By doing so, the employees employed in that office will automatically be subjected to the welfare fund applicable to the employees of shops and commercial establishments of that state. In case you do not have an office, the question of registration does not arise, and therefore, there is no need for payment of the welfare fund at the place of working.
Regards,
Madhu.T.K
From India, Kannur
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4526Welfare funds can be centralized if you do not have an office in the places where your employees are working. However, profession tax cannot be paid at the Corporation/Municipality/Gram Panchayat where your headquarters is situated. In this case, the amount should be paid to the respective office of the local administration where the employees are engaged because profession tax is a state subject and a revenue of the state.
If you have an office in another state, that office should be registered under the Shops and Commercial Establishments Act of that state. By doing so, the employees employed in that office will automatically be subjected to the welfare fund applicable to the employees of shops and commercial establishments of that state. In case you do not have an office, the question of registration does not arise, and therefore, there is no need for payment of the welfare fund at the place of working.
Regards,
Madhu.T.K
From India, Kannur
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Hi, Your company has to apply and remit for MLWF and PT state wise only, even though you do not have office in all states. Regards, Triptika +91-9967630445
From India, Mumbai
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From India, Mumbai
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On incentive Professional Tax in Applicable, if it is pay once in a year? Any notification on it?
From India, Mumbai
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From India, Mumbai
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Profession Tax Overview
Profession tax is levied on the income of individuals, and it does not mean that it is payable on "salaries" alone. It is payable by a professional practicing medicine, law, etc., who does not receive any salary. Therefore, PT is to be computed on the gross income received by an individual, whether by means of salary or not. As such, you have to include bonuses, incentives, or other allowances paid to them during the period.
Most states make it payable in half a year. Then, the half-year period during which the payment of yearly incentive or bonus falls should also include the same as income received by the respective employee.
Regards,
Madhu.T.K
From India, Kannur
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Profession tax is levied on the income of individuals, and it does not mean that it is payable on "salaries" alone. It is payable by a professional practicing medicine, law, etc., who does not receive any salary. Therefore, PT is to be computed on the gross income received by an individual, whether by means of salary or not. As such, you have to include bonuses, incentives, or other allowances paid to them during the period.
Most states make it payable in half a year. Then, the half-year period during which the payment of yearly incentive or bonus falls should also include the same as income received by the respective employee.
Regards,
Madhu.T.K
From India, Kannur
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Professional Tax State Wise Slabs.doc
TN Labour Welfare Fund 2018.pdf