My company's registered office is in Delhi and we don't have any other office in India. But our staff work from all over India from their respective residence. Is Professional tax applicable on staff members working in Tamilnadu, West Bengal, Karnataka, Maharashtra etc. even if we prepare & disburse salary centrally from Delhi?
05 April 2009
If you are paying them like salary then profession tax has to be deducted at delhi irrespective of the place where they are.
If you are paying them like contract say professional charges or data entry charges or if you are not debting to salary the reason being it is piece work rate or some other methodology where the monthly payment differs from month to month then profession tax need not be dedcuted. TDS if applicable has to be deducted.
In case of Karnataka, without having office in Karnataka, you cannot take the registration under the Professional Tax Act. Hence, you deduct PT and pay at Delhi as per your Delhi Professional Tax act slab.
CAclubindia
