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Professional tax - direct or indirect?

Prachetas (Practioner) (57 Points)

31 January 2015

whether Professional Tax is Direct Tax or Indirect Tax?

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CA DVS Satyanarayana (Manager - Finance & Accounts) (241 Points)
Replied 31 January 2015

A tax that is paid directly by an individual or organisation to the imposing entity is called direct tax.

Professional tax is to be paid by an organisation which has been deducted from an individual pay/salary.Hence, it is a direct tax.

Thanks.

CA DVS Satyanarayana (Manager - Finance & Accounts) (241 Points)
Replied 31 January 2015

A tax that is paid directly by an individual or organisation to the imposing entity is called direct tax.

Professional tax is to be paid by an organisation which has been deducted from an individual pay/salary.Hence, it is a direct tax.

Thanks.

Prachetas (Practioner) (57 Points)
Replied 31 January 2015

Thank u Sir.

Ramit sharma (assistant) (52 Points)
Replied 02 February 2015

Professional tax is an in direct tax because it is collected and imposed by state government. A state government cannot impose or collect any direct taxes. Because, direct tax is a subject matter of union list and items mentioned in union list can be imposed only by central government.