Applicability of state of profession tax

This query is : Resolved

NATVARBHAI K PRAJAPATI (Querist)
Follow

17 June 2015 MY REGI COPORATE OFFICE & FACTORY IN GUJARAT ALSO BE MKT OFFICE IN MAHARASTRA AT MUMBAI ALL SALARY OF COMPANY PAID FROM GUJARAT
NOW QUESTION IS THAT PROFESSION TAX OF MUMBAI OFFICE STAFF WHO SERVICE PLACE IS MUMBAI -MAHARASTRA ,
IN WHICH STATE PROFESSIONAL TAX APPLICABLE IN GAUJARAT STATE OR MAHARATRA STATE
HOW EVER SALARY PAID FROM GUJARAT

NATVARBHAI K PRAJAPATI

NATVARBHAI K PRAJAPATI (Querist)
Follow

21 June 2015 pl solve my querry

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

14 July 2024 In the scenario you've described, where your corporate office and factory are located in Gujarat, and you have a marketing office in Mumbai, Maharashtra, with all salaries being paid from Gujarat, the applicability of professional tax (PT) for your Mumbai office staff would typically be as follows:

1. **Maharashtra (Mumbai) Office Staff:**
- Since the service place or the workplace of your Mumbai office staff is in Maharashtra (Mumbai), they would be liable to pay professional tax in Maharashtra.

2. **Gujarat (Corporate Office and Factory) Situation:**
- Professional tax in Gujarat is typically applicable to employees whose place of work or service place is within Gujarat. Since your Mumbai office staff's service place is in Maharashtra, Gujarat professional tax laws do not apply to them.

3. **Payment of Salaries from Gujarat:**
- The fact that salaries are paid from Gujarat does not determine the applicability of professional tax. Professional tax is levied based on the location where the services are rendered (i.e., where the employees work).

### Conclusion

- **Maharashtra (Mumbai) Office Staff:** They are liable to pay professional tax in Maharashtra, as their service place is in Mumbai, Maharashtra.
- **Gujarat (Corporate Office and Factory):** Professional tax laws of Gujarat do not apply to employees whose service place is in Maharashtra, even if their salaries are paid from Gujarat.

It's important for your Mumbai office to comply with Maharashtra's professional tax regulations, which may require registration, deduction, and remittance of professional tax from the salaries of your employees there.

For precise compliance and to understand any specific requirements or exemptions that may apply, especially considering inter-state aspects, consulting with a local tax advisor or professional well-versed in Maharashtra's professional tax laws would be advisable.

If you need further assistance or clarification, feel free to ask.

Best regards,
Asha Kanta Sharma

Upgrade to CAclubindia Pro. Subscribe Now!