Professional Tax

This query is : Resolved

Prakash (Querist)
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29 November 2008 We have given Daily Allowance to our Sales Executive for Conveyance,meeting with distributor,fooding etc Rs. 100 per day. is it include under scope of salary for deduction of Professional Tax?

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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29 November 2008 It is Included to deduct the salary as the professional allowance is based on the gross salary.

K V Subba Rao

K V Subba Rao (Expert)
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29 November 2008 Profession Tax is state subject; so Profession Tax Rules relevant to the particular State have to be visited.

I do not have any authenticated source of information in my possession but it appears to me that DA (Daily Allowance) which is intended to meet local conveyance, lodging and boarding expenses is not includible in gross salary for purpose of Profession Tax

If we go on including DA also, where is the end. Suppose, you send your staff to buy certain goods for the use of Company, can we include that amount in his gross salary. Daily Allowance is also like that

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