We are a new Pvt Ltd company, and a majority of our employees are working remotely. We have only one branch in Odisha. We have registered for PT but wanted to check if our employees are based out of a state where PT is not eligible, like Chhattisgarh. How should we handle this scenario?
Please share some government documents citing this case.
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2Please share some government documents citing this case.
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Professional tax applies to people working in a particular state, essentially in a specific office. If you have employees working remotely, then professional tax is not payable for them in the location where your headquarters is situated.
You may be required to pay their professional tax in the state where they are actually working. However, the legislation was not crafted with work from home (WFH) in mind, making this area uncharted territory. It may not be possible to register for professional tax in a state where you do not maintain an office, so it is essential to review the definitions and provisions outlined in the relevant state laws to determine the appropriate course of action.
From India, Mumbai
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You may be required to pay their professional tax in the state where they are actually working. However, the legislation was not crafted with work from home (WFH) in mind, making this area uncharted territory. It may not be possible to register for professional tax in a state where you do not maintain an office, so it is essential to review the definitions and provisions outlined in the relevant state laws to determine the appropriate course of action.
From India, Mumbai
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So you suggest skipping PT for them or there is any other portal where we can raise the concern. My CA also is not sure how to handle this.
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(Fact Checked)-[response] Your CA can verify with the Professional Tax authorities in Chattisgarh for guidance. It's crucial to comply with the respective state laws. Thank you for seeking clarification. (1 Acknowledge point)
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For those in states where there is no PT applicable, you definitely don't need to pay it.
For others, the matter has not been tested yet by courts. So, read the PT acts of each state and then decide.
Yes, your CA will not have the answer to this...
From India, Mumbai
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For others, the matter has not been tested yet by courts. So, read the PT acts of each state and then decide.
Yes, your CA will not have the answer to this...
From India, Mumbai
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(Fact Check Failed/Partial)-The user reply contains some inaccuracies. Payment of Professional Tax (PT) is mandatory based on the respective state laws, irrespective of where the employees are working remotely. It is essential to comply with the PT regulations of each state where employees are based.
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For those in states where there is no PT applicable, definitely you don’t need to pay it. -> hope this will not create any issue as per the law.
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(Fact Check Failed/Partial)-The user reply is [B]incorrect[/B]. Employees working remotely from states where PT is not applicable may still be subject to the PT laws of the state where the company is registered. It's essential to comply with the labor laws of the state where the company is registered regardless of where the employees are located.
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None, what so ever (but again I will repeat, do read the PT act of your HO state and the intended states)
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply lacks accuracy. Employers must comply with the Professional Tax (PT) regulations of the state where employees are working, even if it's outside the company's state. It's essential to adhere to the PT laws of each state where remote employees are based.
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No deduction towards PT need be made where the State where they are employed does not fasten the responsibility on the employer.
To my knowledge, this situation arises not because there is no PT, but the system of the local body (Municipal Corporation/Municipality/Panchayat) collecting the tax directly from the employee concerned. Kerala and, perhaps, Tamil Nadu follow this pattern.
From India, Kochi
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To my knowledge, this situation arises not because there is no PT, but the system of the local body (Municipal Corporation/Municipality/Panchayat) collecting the tax directly from the employee concerned. Kerala and, perhaps, Tamil Nadu follow this pattern.
From India, Kochi
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(Fact Check Failed/Partial)-The information provided about Professional Tax (PT) deductions is partially correct. However, the responsibility of PT deduction can vary by state law. Refer to state-specific regulations for accurate guidance.
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(Fact Check Failed/Partial)-The user's reply is partially correct. While it is true that Professional Tax (PT) typically applies based on the location of the office, the responsibility for PT payment for remote workers can vary depending on state laws. It is essential to review the specific provisions of the relevant state acts to determine the correct course of action.