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Employer in State A and Employees in State B - Where to Pay Professional Tax

Tax queries 533 views 1 replies

If Employer (individual person) is paying salary to 3 people who are working in a different state, where should employer pay professional tax?

Emplyoer working from Karnataka

Employees are working from Maharashtra

Replies (1)

. Payment of Professional Tax: 1. *Employer's Location*: As the employer is based in Karnataka, they are required to pay professional tax in Karnataka. 2. *Employees' Location*: Although the employees are working from Maharashtra, the employer's location determines where the professional tax is paid. Professional Tax Rates: 1. *Karnataka*: The professional tax rate in Karnataka is ₹2,000 per annum for employees earning above ₹15,000 per month. 2. *Maharashtra*: Maharashtra does not have a professional tax. Compliance: 1. *Register with Karnataka Government*: The employer should register with the Karnataka government and obtain a registration certificate. 2. *File Returns*: The employer must file professional tax returns and pay the tax annually. 


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