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P.tax deduction

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Asif Ali

Senior Audit Manager

187 Points Posted on 23 January 2012

If a H.O (Kolkata) processes salary payment for all its employees of branch or site office then such employer should deduct P.tax of employees at branch office or site office as per Kolkata rates or P.tax rates at Branch state.

The company is in view that the salary processing and payment is done by Kolkata hence the P.tax as per kolkata rate should be deducted ?

2) Is the answer will be same for Temporary site office or permanent branch office ?

Regards

Asif

Replies (1)

Prakash

Chartered Accountant

443 Points Posted on 23 January 2012

Professional Tax is a state subject, levied and collected by respectives states

Professional tax so collected is utilized for the benefit of state

So, PT deducted from employees should be paid to respective states in which branches are located not to the state of Head Office. Logic is very simple to understad, In short the state in which employees are working

II) For temporary Site office, it depends on more factors like time of Project, no of emplyees etc. If small running in few months you can pay in HO state itself