Profession tax entry

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Ankit (Querist)
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12 March 2014 Sir, what is an accounting entry for PT deduction from salary in export company and its comes under which head ie under duties & taxes or treat as an expenses in p&L a/c?

Hemant Kumar

Hemant Kumar (Expert)
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12 March 2014 1) Enter the following transaction after deduction the PT from the salary of employees.

Salary Ac. Dr,
to Professional Tax Payable Ac.

2) After Payment to govt treasury.

Professional Tax Payable Ac. Dr.
to Bank Ac.

Hemant Kumar

Hemant Kumar (Expert)
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12 March 2014 This not your Expense. Because you have to deduct from employee salary and pay to govt.
Therefore it comes under Government Dues (Current Liability).