Profession tax on gross salary or gross earnings of month?

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This query is : Resolved

Sidhardh (Querist)
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30 November 2011 Dear Experts,

Please respond with your valuable answers.

An Employee's Salary structure is as follows.
Basic Pay - Rs. 8,000/-
HRA - Rs. 3,200/-
Convyance Allw - Rs. 800/-
Special Allw - Rs. 5,000/-
Gross Salary - Rs.17,000/-.

He is working in a Limited (Unlisted) Company in Andhra Pradesh.

Profession Tax Slabs in AP:
Rs. 0/- To Rs. 5,000/- - Nil
Rs. 5,001/- To Rs. 6,000/- - Rs.60/-
Rs. 6,001/- To Rs.10,000/- - Rs.80/-
Rs.10,001/- To Rs.15,000/- - Rs.100/-
Rs.15,001/- To Rs.20,000/- - Rs.150/-
Rs.20,001/- To Infinity - Rs.200/-

According to the above slabs, he falls under 5th Slab and Rs.150/- was deducted from his salary from April to August 2011.

In the Month of September, the Employee is absent for 15Days and he Earned Gross Salary of Rs.8,500/-. In that month, since he falls under 2nd Slab, the HR department deducted only Rs.80/- from his salary.

Again in the month of October he attended for full month and Earned Gross Salary of Rs.17,000/- and this time HR Department considered 5th Slab and deducted Rs.150/-.

Is HRD Correct?
Is PF Applicable on Employee's Gross Salary of the Month or Gross Earnings (i.e.,Earnings after Loss of Pay) of the Month?

Kindly state what is right according to AP Professional Tax Act.

Thanks in Advance.