Professional tax

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Bala Abiramy (Querist)
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11 May 2008 When does a company deduct professional tax from an employee's salary?on what basis is this deducted?how is it treated in the books of the employer?

Jayant Tathe

Jayant Tathe (Expert)
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11 May 2008 At the time of Salary Payable Date company deduct Professional tax from an employee salary.

Each State Government will decide the Rates of Professional Taxes .

Two Entries will be required to pass in the books of employer .

At the time of Salary Payable Date
Employee Salary A/c Dr.
To Bank A/c Cr.
To Professional A/c Cr.

At the time of Professional tax Payable Date
Professional Tax A/c Dr.
To Bank A/c cr.

Bala Abiramy

Bala Abiramy (Querist)
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11 May 2008