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)

17 June 2021 How to pass journal entry of profession tax for company and Directors.

Ganeshbabu K

Ganeshbabu K (Expert)

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

Message likes : 1 times

Manohar Chavan

Manohar Chavan (Querist)

17 June 2021 Thank you so much for explanation and entries.

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