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Professional Tax (Multiple States)

29 December 2020

Hi,
We are a start-up with registered office address in Madhya Pradesh while most of the employees are working in karnataka (physically) or remotely across Pan India.

We are yet to start business operations, and most of business operations will be carried out in Karnataka. We do not have any address/office proof for Karnataka.

Do we need to provide professional tax to karnataka government?

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1 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 29 December 2020

In case of employees, an employer is a person responsible to deduct and pay professional tax to the State Government subject to the monetary threshold if any provided by respective State’s legislation. Additionally, employer (corporates, partnership firms, sole proprietorship etc) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to the monetary threshold if any provided by respective State’s legislation. In such case, the employer needs to register and obtain both professional tax registration certificate to be able to pay professional tax on his trade/profession and professional tax enrolment certificate to be able to deduct the tax from his employees and pay. Further, separate registration may be required for each office depending on the respective State’s legislation.

Persons who are carrying on freelancing business