Need information about tax on employment in wb

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Siddhartha Kar

Sr. Executive Accountant

28 Points Posted on 26 March 2013

Dear Sirs,

Please let me know if any Director/s ( Executive) of a company, who gets professional/consultancy fees from the comapny in monthly basis, should liable to deduct profession tax from his/her consultancy fees. We deduct income tax as per u/s 194J(1)(ba).

If the answer is 'yes' then which process we have to be followed -

1) Deduct P.Tax as per the slab in W.B or

2) Deduct tax of Rs. 2500/- in a year.

Thanks in advance for your kind cooperation.

Regards,

Siddhartha Kar

siddharthak @ evikasystems.co.in

Replies (2)

CS Kaushik Kundu

Company Secretary

80 Points Posted on 26 March 2013

Dear Siddhartha,

If company is dedecting Profession Tax from Director for the service of Directorship and the same Director is providing professional service then Company does not require to deduct Profession Tax on professional fees.

Difference in opinion accepted.

Siddhartha Kar

Sr. Executive Accountant

28 Points Posted on 26 March 2013

Thanks Mr. Kundu for your comments.

My problem is something different. One of our Financial consultant is providing services for last two years on monthly charge basis, on which we are deducting TDS @ 10% u/s 194J. He himself deposited Prof. Tax for his business.

From 01.04.13 he will be on our Board for which he will not be paid anything for Directorship, whereas he will continue his earlier services and be paid. Now his payment will attract Sec 194J (1)(ba).

Please advise whether any Prof Tax will be levied out his charges. If to be charged, then at what rate?

Regards,

Siddhartha