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Preeti Wadhawan (CS & Legal Manager)     01 November 2011

Professional tax

Hi Friends,

 

we have an office in delhi and we have an employee who is relcoating for personal reasons to bangalore, we do not want him to leave the organisation. His job does not require him to be physically present so we are giving him an option to either work from home in bangalore or sit in one of the vendor's office in bangalore. Since we do not have an office in bangalore, we cannot deduct and deposit professional tax for this employee. Will not depositing his professional tax create an issue? if so, what are the ways available? One option that i was contemplating was that we tweak his appointment letter to state that his primary place of work will be delhi and he will have an option to work from home.

Your views are solicited

Regards 



Learning

 9 Replies

Sankaranarayanan (Advocate)     01 November 2011

yes better to detect according to the banglore corporation norms of  slab  ( karnataka state). Your office given him the deputation of work or transfer, if transfer of place then you have to pay according to that jurisdiction norms

VIJAYAKUMAR (Asst.Manager Lega)     01 November 2011

if the employee is in Delhi office payroll then you should deduct Professional Tax for Delhi.

If you treat him as consultant and deleted his name in  your payroll then you don't to pay professional tax  forever.

VIJAY

M.Krishna Murthy (HR, Manager)     03 November 2011

Sir......I am working as consultant (HR) in a good company and they are paying a fixed amount including every thing.since my joining the company is deducting professional Tax of Rs.200/- per month.I need clarification for the following:

1.is it compulsary to deduct professional Tax from Consultants? if not can I claim back the amount?what is the mode of getting the amount?Please suggest..............

VIJAYAKUMAR (Asst.Manager Lega)     03 November 2011

If your name is not in the payroll of the company, you can refuse to contribute to Professional Tax.

 

VIJAY

Preeti Wadhawan (CS & Legal Manager)     14 November 2011

Thanks for all your replies. But if we do not have an office in bangalore and i deduct p tax, where do i go and deposit it because we need to get the local office registered with the p tax authroties

VIJAYAKUMAR (Asst.Manager Lega)     14 November 2011

HI Preeti,

Following are the options available for u.

1) The employee is in Delhi office payroll, then pay in Delhi irrespective of where he is residing. 

2) If you have deleted his name in Delhi office payroll and want to treat him as consultant, then there is no need to deduct professional tax.

3) If you to pay at bangalore, then first you need to get Industry license and then you have to apply for Municipality license.  After getting municipality license then you can pay Professional tax.

VIJAYAKUMAR

Preeti Wadhawan (CS & Legal Manager)     14 November 2011

thanks for the apt reply, When you say pay in Delhi, what does that mean. What are the practical aspects involved in it? regards

VIJAYAKUMAR (Asst.Manager Lega)     15 November 2011

Be simple. The procedures you are following at present for paying professional tax to other employees working in your Delhi office will be followed in this case also.  Just deduct the professional tax according to the slab and pay to municipality.

 

VIJAY

Preeti Wadhawan (CS & Legal Manager)     15 November 2011

Hi Vijaya, I am based in gurgaon where there is no professional tax.

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