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Professional tax

jayashankara H R (Accounts Executive) (32 Points)

14 September 2011

Dear sir,

Please advice me about PT, how to entered in tally.

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3 Replies

Keval (Consultant) (120 Points)
Replied 14 September 2011

Profession Tax is the Tax deducted from the salary paid to employees.

Let me take an example to make it more clear. Suppose B Co. has hired Mr. A as the employee of the company with an monthly gross salary of Rs 1,00,000. Break up of salary

Basic Salary 60000

HRA 30000

conveyance 10000

Now company has to deducted professional tax say Rs 200 and TDS 1300 from the salary of the employee and should be paid to concerned authority on the relevant due date.

The accounting for the same is as follows:-

Salary cost A/c Dr. 1,00,000

To P.T payable 200

To TDS payable 1300

To Employee payable 98500

By this entry gross expenditure of the company is debited to salary account and statutory liability that is Profession tax and TDS are shown as payable and the remaining net salary will be payable to employee.

At the time of making payment of professional Tax on due date:-

P.T. payable a/c 200

To Bank a/c 200