Can professional tax paid be claimed as expense by company

Circulars 12368 views 37 replies
Professional Tax can be claimed and can be charged to p & l as it is allowable expenditure if company pays for itself. In case of professional tax deducted from employee salary it is a liability to company it can't be charged to p & l.
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Professional Tax can be claimed and can be charged to p & l as it is allowable expenditure if company pays for itself. In case of professional tax deducted from employee salary it is a liability to company it can't be charged to p & l.
ABSOLUTELY PROFESSIONAL TAX PAID BY COMPANY IS AN CLAIMABLE EXPENSE

No it can't be claim neither under section 37(1) and nor as a indirect tax.

Originally posted by : Nishad
No it can't be claim neither under section 37(1) and nor as a indirect tax.

TRUE
I believe If the company has paid the professional tax in the capacity of an employee it can be deductibleu/s 16 as an income from salary, but whether there's any situation that a company has to pay the professional tax in the capacity of a business entity..??
Yes professional taxes is indirect exps.

Dear pradeep wagh, Professional tax is a direct tax. professional tax is deducted same as TDS. How can salaried person required to pay indirect tax ? 

As you know direct tax is directly linked to the income of a person & salary is direct income of a person. So professional tax is direct tax.
 

Yes, employer can claimed for prof. Tax paid by employer. But only employer contribution only.
Yes i agree with shulabh

Yes we can claim it

Originally posted by : PRITI TRIPATHI
Yes we can claim it

dear,

plz provide ref. for this ??

https://charteredknowledge.blogspot.in/2013/12/section-371-business*xpenditure.html


 

As far as my knowledge is concerned, professional tax is a direct tax whether paid by the company for itself or on behalf of its employees. In case it is paid by the company for itself, it can be claimed u/s-37. But if it is paid on behalf of the employee, whether as a perquisite or as a libility after deducting it from the salary of the employee, then it cannot be claimed by the company but by the employee only u/s-16, after including it first in his salary income, provided if its a perquisite for the employee. Moreover, it is applicable to some states of india only.

Open for any further valuable comments & suggestions from my fellow members..

Professional tax paid by a person carrying on a business or trade can be allowed to him as a deduction under section 37(1)


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