Profession Tax

This query is : Resolved

mahendra (Querist)
Follow

15 May 2008 Salary payment ( Rs. 7500/-)made by company to the personal employee of the director on behalf of director (i.e. debited to director account)by cheque.

Is the responsibility of the company to deduct Profession Tax on same? (Maharashtra State)

Is the liability of the director to pay P.T. on salary ?

Thanks in advance.

Regards,
Mahendra.

Amit Sharma

Amit Sharma (Expert)
Follow

15 May 2008 Mahendra,

It depends upon the state you are in, becuase professional tax is a state tax i.e. the rules are framed by the state governing body.If you could tell me the state you reside in we can progress from there.

mahendra

mahendra (Querist)
Follow

15 May 2008 Maharashtra

mahendra

mahendra (Querist)
Follow

15 May 2008

mahendra

mahendra (Querist)
Follow

15 May 2008

mahendra

mahendra (Querist)
Follow

15 May 2008

mahendra

mahendra (Querist)
Follow

15 May 2008

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
Follow

15 May 2008 in maharashtra any person who pays salary to an employee in excess of RS. 2500/-then he will liable to deduct tax & paid to govt

Amit Sharma

Amit Sharma (Expert)
Follow

15 May 2008 Income Monthly Professional Tax
Less than Rs. 2500 Nil
Between Rs. 2500-3500 Rs.60
Between Rs. 3500-5000 Rs.120
Between Rs. 5000-10000 Rs.175
Beyond Rs.10000 Rs.200

So according to your question you will have have to deduct PT to the extend of Rs 175/-

Hope your doubt is clear now.

Jayant Tathe

Jayant Tathe (Expert)
Follow

15 May 2008 It it the Liability of the Director to Deduct Professional Tax from his personal emloyee Salary as per Maharashtra State Tax on Professions, Trades, Callings Employments Act, 1975.

Either you can directly deduct PT from the salary of Directors employee & debit full amount to directors A/c

following is the rate of taxes required to deduct from salary

(a) do not exceed rupees 2,500 - Nil
(b) exceed rupees 2,500 but do not
exceed rupees 3,500 - 60 per month
(c) exceed rupees 3,500 but do not
exceed rupees 5,000- 120 per month
(d) exceed rupees 5,000 but do not
exceed rupees 10,000 - 175 per month
(e) exceed rupees 10,000 -2500 per annum, to be paid in the following manner: -

a) rupees two hundred per month except for the month of February;

b) rupees three hundred for the month of February

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now