Professional Tax - Levy on Gross Salary or Net Salary ?

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mani muthukrishnan (Querist)
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19 August 2009 This question is in relation to Professional Tax Applicable in Karnataka.
Section 4 of THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENT ACT, 1976 states as quoted below:

4. Employer's liability to deduct and pay tax on behalf of employees.- The tax payable under this Act by any person earning a salary or wage, shall be deducted by his employer from the salary or wage payable to such person before such salary or wage is paid to him, and such employer shall, irrespective of whether such deduction has been made or not when the salary or wage is paid to such persons, be liable to pay tax on behalf of all such persons:
Unquote.
My view is that the words above "BEFORE SUCH SALARY OR WAGE PAID TO HIM" means the net salary. Also the words "ANY DEDUCTIONS" from salary is not included in the act.

So is my point view correct as per the law?

Amit Sheode

Amit Sheode (Expert)
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19 August 2009 Dear Friend,
I do not sgree with the view for the simple reason that salary payable is always the gross salary incl TDS & other labour related deductions.
Secondly the words before the salary is paid to him relate to the time of liability to deduct & pay the professional tax.

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