12 November 2013
My auditor's client is an employer of engineering college. One of his employee had worked only for 15 days in august month and he was paid 15 days salary,10000 Rs. But professional tax is deducted and paid on full months salary i.e on 20000. In accounts, salary paid for august month is shown as 10000 and PT deducted as 150. Is this correct way of accounting? and it is necessary to pay professional tax for august month? Thanks in advance