How to pass journal entry of profession tax for company and Directors.

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This discussion explains how to pass journal entries for professional tax. For the company, it's treated as an expense debited to the Profit & Loss account under Rates & Taxes. For directors, professional tax is handled like TDS, deducted from their salary and paid to the exchequer. Example entries are provided for clarity.

Manohar Chavan

Manohar Chavan (Querist)
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17 June 2021 How to pass journal entry of profession tax for company and Directors.

Ganeshbabu K

Ganeshbabu K (Expert)
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17 June 2021 1)Professional tax on company is expense and may be debited to profit and loss account under Rates&Taxes
2)PT of directors is kind of TDS, you collect from director salary and same will be paid back to exchequer with in due date

Ex:
Dr Director salaryA/c
Cr Salary Payable A/c
Cr PT (Duties & Taxes)

Dr PT
Cr Bank

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Manohar Chavan

Manohar Chavan (Querist)
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17 June 2021 Thank you so much for explanation and entries.

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