Professional Tax whether applicable

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Anjani Kumar Sharma (Querist)

26 December 2008 Kindly throw some light on the following problem:

My client has a man power recruiting firm based in Delhi. His employees are deputed in states of Gujrat, WB, Karnataka and Maharashtra. Will he be liable to Professional Tax considering the follwing:
1.There is no professional Tax in the state of Delhi.

2. The salary is being paid from Delhi and the employer has no place of business in any of these states.

Please reply asap.
In Anticipation
A K Sharma

O.D.SHARMA

O.D.SHARMA (Expert)

27 December 2008 Dear,If u don't have office & Employees in the states,Where prof.Tax is applicable.There is no need for Prof.Tax Regn & Payment question doesn't arise.
2) Deputed means what? placed in jobs in different states,Then no problem.Prof Tax is only for organizations having offices & Employees in those states.

Anjani Kumar Sharma

Anjani Kumar Sharma (Querist)

27 December 2008 Deputed means that the employees are locals who have been recruited from the respective cities of the above mentioned states and have been deputed in various stores and offices of the client's client.... for instance m/s xyz recruits staff for sales promotion for a brand of abc ltd. .... now these employees of xyz promote the brand of abc ltd in various cities..... although they work in the stores of abc ltd but they are directly employed by xyz who pays them salary (from Delhi).

Anjani Kumar Sharma

Anjani Kumar Sharma (Querist)