Professional tax applicability

Hi Members

X pvt Ltd having Reg office in Karnataka has registered for Karnataka Professional Tax act, the query is company has branch office at mumbai, and for mumbai employees its paying salary from karanataka branch and deducting PT @ slab rates which are applicable in karnataka is it correct? or it should get registered in mumbai and deduct as per mumbai slab rates and remit same in mumbai?

Replies (4)

Proffession tax legislation is a State subject on which laws are to be made by the Jurisdictional States subject to Constitution of India which stipulates a limitation of Rs 2500/- p.a. by any State.

Accordingly the Employee earning in Mumbai has to be guided by the Law applicable to Maharashtra.

So Employer having office in Mumbai has to register it-self in Mumbai and deduct Proffession Tax as per applicable provisions of Maharashtra Proffession Tax Act .

The deductions as per Karnataka Proffession Tax is not correct.

kkm

Person employed by AP based company and PT deduction arise from his salary and paid to govt.

and Director in Mumbai based Company so we need to pay PT again in Maharashtra

Person employed by AP based company and PT deduction arises from his salary and paid to AP govt.

and Director in Mumbai based Company so we need to pay PT again in Maharashtra

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