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I m hr personal.... I m confuse regarding the Professional Tax & overtime. Plz guide me... Is overtime is included in professional tax.? & how it calculates on overtime.? Regards, Bhavi.
From India, Vadodara
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Hi, Professional Tax is slab based on Gross Salary. Hence OT too to be considered while arriving at PT Slab
From India, Bangalore
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BB
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Firstly, thank you for your input.

Now, for example, if my organization is giving salary on the 7th and we are deducting the PT, and we are giving the OT on the 25th, should we deduct the PT again from the OT?

Considering Overtime for Professional Tax

Also, as you said that we should consider OT too while arriving at the PT slab, can you explain this sentence with an example?

Regards,
Bhavi

From India, Vadodara
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[QUOTE=consultme;2071736]
Hi,

Professional Tax is slab-based on Gross Salary. Hence, OT too should be considered while arriving at the PT Slab.

Clarification on Professional Tax and Overtime

Firstly, thank you for your input. Now, for example, if my organization is giving salary on the 7th and we are deducting the PT, and we are giving the OT on the 25th, should we deduct the PT again from OT?

Also, as you said that we should consider OT too while arriving at the PT Slab, can you explain this sentence with an example?

Is there any act which gives details about my question?

Regards,
Bhavi

From India, Vadodara
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Let us assume that a salary is paid in two intervals every month, say on the 7th and the 22nd of each month. Do you mean to say that we have to pay the Professional Tax (PT) only on the salary of the 7th and not on the 22nd?

Clarification on Professional Tax Payment

The Professional Tax is paid on the gross salary earned for a particular month, regardless of whether overtime (OT) is paid on a later date or on the same date. Hope this clarifies your query.

From India, Ahmadabad
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Dear, 1. Do you maintain wage register under S&E act or Contract Labour Act or any other act? 2. If not, pls maintain for legal compliance. Hence you have to pay P.Tax. Regards, Avish
From India, Delhi
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OT is a part of earnings, and PT is payable on gross earnings during the calendar month. When you make payments to employees more than once a month, all such payments should be combined to ascertain the PT monthly liability on the total gross earnings for that month. You are making payments twice a month, so you need to adopt a system where PT is deducted from the total gross earnings during the month.

I suggest that you add the amount of OT paid in the previous month to the current month's gross for the purpose of PT deduction. This, I feel, is an easy way. Alternatively, you have to ensure the deduction of the difference in PT due to OT payment from the payment of OT. Hope you understand what I said.

Regards.

From India, Mumbai
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Dear Mr. Bhavi my i know how you are calculating and paying ESIC ? as ESIC also applicable on Overtime Vikram Trivedi
From India, Mumbai
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