PROFESSIONAL TAX

[JSW CEMENTLIMITED]

I would like the experts and professional to kindly clarify, if a company has multiple offices / godown in a state, then what would be the professional tax amount for that particular company as a employer. whether it would ₹ 2500/- per annum or ₹ 2500/- multiplied by no. of offices/godowns in that particular state.

Thanks

[NISHANT SHAH]

Dear Sir,

According to me, it is charged on business for each office which falls within jurisdiction of local municipality hence you must pay professional tax for all offices/factory/godown located within jurisdiction of local body/ muni. corporation/ as the case may be..

[RAMASWAMY Advocate]

In my view the professional tax is levied and collected by the respective State/union territory. Different state/UT has a different slab rate of professional tax based upon the income P.M.. The tax can be paid in our view either monthly or annually, and the maximum amount in our view will be ₹ 2,500/= Normally the professional tax liable to be payable by an individuals, HUF, Firm/Company/societies/AOP etc. In our view the tax to be paid by each office/godowns.

Regards,

[DEV KUMAR KOTHARI]

Dear Sir,

As per your query some clarification is required. you have mentioned as an employer and also ₹ 2500/-PM

GENERALLY PROFIESSION TAX is of two types:

First on any person engaged in any profession, vocation or business. In case of company there will be tax on company. Maximum tax is ₹ 2500/- per business place or business entity. Applicable provisions in the state are to be checked.

Profession tax in on business, profession or vocation of any person. A company is a person and all its units are not separate persons. Therefore, PT should be for company only, but in some states for each place separate levy is imposed. The amount being small, it seems remain uncontested.

For employees- tax is collected from employees and paid to the government department. The company is employer, so it can be paid centrally, for all units in state, if so allowed in respective law. So far tax of employees is concerned the maximum limit is for each employee ₹ 2500/-

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[Ganeshan Kalyani]

Sir, I agree with Sri. Kothari Sir. As a company only ₹ 2,500/- is payable on an annual basis. A company is considered as one person. A company has to take PTEC - Professional Tax Enrolment Certificate to make the payment.

[JSW CEMENTLIMITED]

Sir

Thanks for replies but if u can go through definition of person in professional tax act in Karnataka, Andhra, west bengal and telengan, u will find in the explanation that each office, branch office of a company shall be treated as separate person. If that be the case then PT has to be calculated for each branch. Moreover in Kerala it talks about payment of PT in each municipality where trade is taking place. I would request you to go through that and provide your opinion

Regards

AI Summary

Professional tax treatment varies-state laws may treat each branch as a separate taxable person, affecting employer liability. Whether professional tax is payable per company or per office depends on state and municipal law: some jurisdictions treat each branch or place of business as a separate taxable person requiring separate enrolment and payments, while others allow centralised payment for a company; employers must check the statutory definition of 'person' and local municipal provisions to determine per-place liability and withholding/remittance obligations for employees.