Applicability of Professional TAx


31 May 2011

Dear All,

Can any body help me out...

a registered trust in Andhra Pradesh (Hyderabad) is having its educationl centers all around the india.

and the total no of employees all are more then 200, but most of the employees are temporary.

right now they are deposited the PT only for those epmolyees who are covered under PF Act.

is they are doing correct?????

second question is - are they required to get registered for PT act under each state???

as for example they are having 35 employees in tamilnadu but right now they are not deducting PT on their salary (pls suggest, weather they are right or wrong)

Thanks in Advance


U S Sharma (Expert)
31 May 2011

1) if the salary(ies) are paid through master roll at hyd then all such employees are deemed to be employed at hyd and deputed at other states, hence PT deduction and payment at hyd only.

2) if branch-wise master roll is maintained, then branch-wise PT registration is to be maintained.

3) Neither Profession tax nor provident fund, allow any employer not to deduct the PT/PF from employees, so you have to deduct the Profession tax and provident fund both from all employees, either permanent or temporary.

3) Where the persons are deputed by way of contract through any contractor, then its duty of principal employer to ensure about the deduction(s) of PT/PF, otherwise the principal employer will stand liable for same.

4) where the persons are deputed in their professional capacity, i.e they are submitting their bills on works offered basis and get payment, employer has to get ensure about their enrollment under PT.

narender (Querist)
31 May 2011

Thanks a lot sir

now i am very clear abt PT

can you pls tell me the relevant dates under PT act in A.P

and few more questions sir,

The Institution is having more then hundreds of employees and most of the employees are hired for short spam (3-4 Months)

are we required to deduct the PF from their salary???

or is there is any way to avoid this statutory compliance ???

and what are the documents, required to be sign from those employees, who have not opted for PF (as their salary is more then 6500).

can you also let me know that are breakup of salary is compulasary (in terms of Basci,HRA, Conveyance allowance etc) to calculate the PF applicability???

Looking fwd for ur valuable suggestion


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