Professional tax, inclusion in CTC

Dear Friends

we are in the process of restructuring our salary, One of our branch is in karnataka where professional tax is applicable and the corporate office is in delhi/ncr where this is not applicable. we file our tax returns in delhi and also deposit the tax in delhi itself.

My querry is shall we consider the professional tax as part of CTC as it is the responsibility of employer to deposit the tax.

further since part of the staff are in delhi/ncr but some of them frequently visit karnataka for two to three week in a month, whether employer is also liable to professional tax on them, and if yes what will be the procedure to deposit the tax, its place and return.

thanks & regards

naren 

Replies (8)

Dear Sir,

The Profession Tax is the part of CTC.Therefore, for the employees on the payroll in Karnataka, where PT is applicable it will have to be included in their CTC and shall be deducted periodically. Also since PT is not applicable in Delhi, it will not be included.

Now for the employees visiting Karnataka-it depend whether the employees are on payroll of Delhi or Karnataka

If Karanataka-PT is applicable

If-delhi-Pt is not applicable.

Dear Sir,

The Profession Tax is the part of CTC.Therefore, for the employees on the payroll in Karnataka, where PT is applicable it will have to be included in their CTC and shall be deducted periodically. Also since PT is not applicable in Delhi, it will not be included.

Now for the employees visiting Karnataka-it depend whether the employees are on payroll of Delhi or Karnataka

If Karanataka-PT is applicable

If-delhi-Pt is not applicable.

Dear Narendra, 

 

u will have to take PT registration in karnataka for the employees of that branch and make payment there and file returns also in karnataka.

 

For the employees visiting karnataka, u can follow the rules applicable at Delhi itself.

 

Profession tax should is a part of salary itself, cos it is the liability of employee to pay.

Govt is casting responsibility on employer, to collect and remit the profession tax by deducting from the employee's salary.

So no need to treat PT as separate item of CTC, its already in the salary.

Agree with GK and Profession Tax is not a part of CTC

Dear narendra,

Agree what other friends have said.

Just want to add that Delhi Govt. is soon imposing PT in Delhi.

Hi.

I have joined an Audit Firm(Mumbai) (Feb 2010) & in CTC there was no mention of Professional Tax which will be levied.But when I got my first salary cheque the amount for the same has been deducted.

Please throw some light regarding this concern.

 

IF PT OF EMPLOYEES NOT PAID BY EMPLOYERS ON TIME THEN WHERE IT WILL BE DISALLOWED u/s 43B or 2(24)(x).

Please reply, Its urgent

Hi

 

how to prepare professional tax format with letterhead

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