Payment of Professional Tax to Chennai Corporation

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This query is : Resolved

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This discussion clarifies the responsibility for paying Professional Tax for contract labourers in Chennai. The query centres on whether the manpower company or the client organisation should deduct and remit the tax. Given that the manpower company pays the labourers' salaries and is later reimbursed, it is deemed responsible for the Professional Tax deduction and remittance.

sunder r

sunder r (Querist)

20 June 2025 A manpower company based in Chennai recruits personnel to serve as security guards and for other allied services, deploying them to various government agencies, banks, private establishments, and other authorities. The minimum wages and allowances (Pay plus variable Dearness Allowance) payable to these contract labourers have been fixed at ₹21,000.

My query is: Who is responsible for the deduction and remittance of Professional Tax payable by these contract labourers to the respective Local Bodies? All such labourers fall within the taxable slabs and are therefore liable to pay Professional Tax. Specifically, does the responsibility lie with the manpower company, or with the organization that engages these labourers on a contractual basis?