Hello
There is a company who is deducting professional tax from salary of employees but not depositing it. This is because, department is not registering under the act.
Now the question is, the amount which company has deducted from salary, needs to be kept in a seperate account ???
If the company is not in a position to pay the Professional Tax to the Government; then to avoid future hardships; the company should open one separate account and deposit the amount collected in that account.
Whenever we are not in a position to deposit government dues; it is always better to adopt abovesaid practices so that in future it can be established that there is no mala-fide intention to use the funds in the business.
CAclubindia
