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Can professional tax paid be claimed as expense by company

Circulars 14904 views 37 replies

Can Professional Tax paid by a company (for itself) be claimed as an expense if, yes then please share d relevant section or circular supporting d answer

Replies (37)

i think we cant.....let c others replies

Yes Professional tax paid by a company can be claimed as deduction under section 37(1). it is a business expenditure.

profession tax paid by the company for itself is definitely an expenditure for it. But the 1 which is deducted from the salaries of employees and subsequent are deposited into the account government is not an expense for the company company is just collecting and depositing it.
Yes...it can be claim
It can be claimed u/s 37(1)
Yes we claim as it is indirect tax
No it can not claimed. You alredy claimin salary as exp. And after deductiong professional tax from salary you again want to claimed prof tax as exp. How can you claim double deduction. Its only statuutory liability of your . and just like tds on salary.. You cant claim employee tds as exp. You cant claim prof tax..
Originally posted by : ACS Gaurav Jain

yes i agree

 

 

 

Mr. Gaurav jain, you are getting confused, he has enquired about proff tax paid by com for itself, not about proff tax deducted from salary. Therefore, no double deduction would be there.
I agree with shulabh khandelwal that gaurav jain is confused.
we can very claim it as exp. I did so in our clients accounts.
Yes its allowed however paid on the behalf of directors are not allowed

Yes, Professinal Tax Paid by the Company 'For Itself' Can be Claimed as a 'Business Expense'.

It is Allowable Expense Under Section 37.

Refer the Analysis of Section 37 on the Link: https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-37

First let you know that professional tax is a direct tax. It is not a indirect tax because it is tax on your income (Salary) . As you know that direct tax paid will not allowed  as expense.

So, you can not charge it against income of company even though company has paid it.

 

Have a nice day...


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