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Professional tax of branches & directors

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Himanshu Gupta

5 Points Posted on 25 February 2024

Hey,

I work in Delhi registered Pvt Ltd company. It have branches/showrooms in Gujarat, Karnataka & Telangana. I wanted to know if professional tax would application on company or not. And do we need to pay directors professional tax also?

Replies (2)

Quick Summary

This discussion clarifies professional tax applicability for a Delhi-registered Pvt Ltd company with branches in Gujarat, Karnataka, and Telangana. Professional tax is generally levied by state governments and applies to both companies and their employees. The company is responsible for deducting and paying this tax on behalf of employees. Directors are subject to professional tax if they receive a salary, but not typically if they only receive sitting fees or dividends. It's advised to consult a local tax advisor for specific state regulations.

Lisa Miller

Freelance Writer

22 Points Posted on 25 February 2024

Hey there,

Professional tax is usually levied by state governments in India, so the rules may vary depending on the state where your company is registered. Generally, professional tax is applicable to both companies and their employees. The company is responsible for deducting and paying the professional tax on behalf of its employees.

Regarding directors, if they are employees of the company and receive a salary, then professional tax would apply to them as well. However, if they are not employees and receive only sitting fees or dividends, professional tax may not be applicable. It's always best to consult with a tax advisor or accountant familiar with the specific state's regulations to get accurate advice for your situation.