One of our staff members retired at the age of 60 and now shall be working with us as a retainer. Is professional tax applicable for retainer ship fees? Regards, Jagat
From India, Mumbai
From India, Mumbai
Why NOT? If he is retired but still getting any fees, profession tax should be paid. Profession tax is not a tx on salaries alone, it is a tax on all revenues, and even the doctors and lawyers are supposed to pay tax to the government and local authorities. As such, if you are paying salary (or professional fee) that will invariably attract tax.
From India, Kannur
4262From India, Kannur
The company does not have to pay profession tax for those who are not employees.
However the employee will need to register for profession tax and pay the same on his own.
For compliance purpose, you can ask for a copy of the challan
She will be exempt only at age of 65
From India, Mumbai
However the employee will need to register for profession tax and pay the same on his own.
For compliance purpose, you can ask for a copy of the challan
She will be exempt only at age of 65
From India, Mumbai
Exemption given to senior citizens from payment of profession tax is not a general exemption because the issue of collection of profession tax is a state subject and it need not be same in all states. Some states have exempted the ex servicemen from payment of profession tax. But that is not available in all states.
profession tax is a tax on revenue and not tax on salary alone. It is true that in respect of consultants the employer has no liability to deduct profession tax and pay it to the respective LSG, but the person who gets the amount as professional fee has responsibility to pay it directly to the LSG. it is to be understood that not only persons getting salary but lawyers, accountants, doctors, consultants etc who receive professional fee should also pay profession tax to the LSGs. the amount so paid shall be claimed as deduction from the income chargeable to income tax.
In the case of employees continuing the service after retirement as a retainer, what is to be ensured is to see how the contract has been made. Obviously, if the 'retainer' is coming to the office regularly and attending his routine work, then by whatever name he is described or by whatever name the remuneration is described, employee employer relationship could be established and the remuneration would be considered as salary only. In such scenario, it will become the employer's responsibility to pay the profession tax on the remuneration payable to the so called retainer.
From India, Kannur
profession tax is a tax on revenue and not tax on salary alone. It is true that in respect of consultants the employer has no liability to deduct profession tax and pay it to the respective LSG, but the person who gets the amount as professional fee has responsibility to pay it directly to the LSG. it is to be understood that not only persons getting salary but lawyers, accountants, doctors, consultants etc who receive professional fee should also pay profession tax to the LSGs. the amount so paid shall be claimed as deduction from the income chargeable to income tax.
In the case of employees continuing the service after retirement as a retainer, what is to be ensured is to see how the contract has been made. Obviously, if the 'retainer' is coming to the office regularly and attending his routine work, then by whatever name he is described or by whatever name the remuneration is described, employee employer relationship could be established and the remuneration would be considered as salary only. In such scenario, it will become the employer's responsibility to pay the profession tax on the remuneration payable to the so called retainer.
From India, Kannur
Going by Nityansh's description it appears the person is continued to work even after the retirement as if an employee as in the past. To confirm this the pay roll should be the basis, if the person is part of employer's pay roll, he/she shall be treated as 'employee' and PT applied as per Maharashtra PT Act/Rules. On the other hand if he is treated as 'consultant' and paid thru' vouchers then PT is applicable as if he/she a 'consultant'. In any case the provisions of The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975) should be the guidance - read here : https://mahagst.gov.in/en/act/5...
Please take note of the following "Exemptions clause of the Act in Maharashtra:
" [1][27A. Exemptions.-
Nothing contained in section 3 and other provisions of this Act shall apply to-
[2][(a) the members of the Forces as defined in the Army Act, 1950 or the Air Force Act, 1950 and the members of Indian Navy as defined in the Navy Act, 1957 serving in any part of the State and drawing pay and allowances as Army or Air Force or Navy, as the case may be, including the members of auxiliary forces or reservists, or reserve and auxiliary services serving in any part of the State and drawing pay and allowances as such auxiliary forces or reservists, or reserve and auxiliary services, as the case may be, under the budgetary allocations of the Defence Services;]
[3][Explanation.-It is hereby declared for the removal of doubts that nothing in this clause shall apply or shall be taken to have applied during any period starting on or after the 1st May, 2000 to persons drawing pay and allowances from the establishments of the Defence Ordnance Factories situated in any part of the State.]
[4][(a-1) * * *]
(b) the badli workers in the textile industry.]
[5][(c) Any person suffering from a permanent physical disability (including blindness), being a permanent physical disability specified in the rules made in this behalf by the State Government, which is certified by a physician, a surgeon or an oculist, as the case may be, working in a Government Hospital and which has the effect of reducing considerably such individual's capacity for normal work or engaging in a gainful employment or occupations:
Provided that such individual or, as the case may be, employer produces the aforesaid certificate before the prescribed authority in respect of the first assessment year for which he claims deduction under this sub-section :
Provided further that the requirement of producing the certificate from a physician, a surgeon or an oculist, as the case may be, working in a Government Hospital shall not apply to an individual who has already produced a certificate before the prescribed authority under the provisions of this sub-section as they stood immediately before the 1st day of April 1995.
Explanation.-For the purpose of this sub-section, the expression "Government Hospital" includes a departmental dispensary whether full time or part time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants;]
[6][(d) Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana of Directorate of Small Savings.
[7][(e) Any person with Intellectual and Development Disabilities (Mental Retardation) specified in the rules made in this behalf, which is certified by a psychiatrist working in a Government Hospital and which has the effect of reducing considerably such individual's capacity for normal work or engaging in a gainful employment or occupation and parents or guardian of such person:
Provided that, such individual or, as the case may be, employer produces the aforesaid certificate before the prescribed authority in respect of the first assessment year for which he claims deduction under this clause.
Explanation.- For the purpose of this clause, the expression “Government Hospital” shall have the same meaning as assigned to it in clause (c);]
[8][(f) the person who have completed the age of sixty-five years.]
[9][(g) parents or guardians of a child suffering from a physical disability as specified in clause (c);]
[10][(h) the armed members of Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 (66 of 1949) applies and the armed members of the Border Security Force, to whom the Border Security Force Act, 1968 (47 of 1968) applies and serving in the State.]
[1] Section 27A was inserted by Mah. Act .No.21 of 1976
[2] Clause (a) was substituted by Mah. Act. No.12 of 1991 dt.27.3.1991 and shall be deemed to have been substituted with effect from the 1976
[3] This Explanation was inserted by Mah. Act. No.51 of 2000
[4] This clause was inserted by Mah. Act. No. 9 of 1997, w.e.f. 1.10.96 and was deleted by Mah. Act. No.22 of 2000 dt. 28.4.2000. Prior to its deletion it read as under:
“(a-1) persons on the establishment of Defence Ordinance Factories in any part of the State;”
[5] This Clause was substituted by Mah. Act. No.19 of 1996, and shall be deemed to have been substituted w.e.f.1.4.1995.
[6] This clause was inserted by Mah.Act.No.9 of 1989, w.e.f. 1.4.89
[7] Clause (e) was inserted by Mah. Act. No. 16 of 1995, w.e.f.18.8.95 and then substituted by Mah. Act. No. 27 of 2014, dt. 26.6.2014, w.e.f. 26.6.2014, Prior or its substitution it read as under:-
“(e) parents of the mentally retarded child:
Provided that such mental retardation shall be duly certified by a registered medical practitioner;”
[8] Clause (f) was inserted by Mah. Act. No. 16 of 1995,w.e.f.18.8.95.
[9] This Clause was inserted by Mah.Act.No.19 of 1997 w.e.f.1.10.96.
[10] Clause (h) inserted by Mah. Act. No. 15 of 2016, dt. 26.4.2016, w.e.f. 1.4.2016......"
From India, Bangalore
Please take note of the following "Exemptions clause of the Act in Maharashtra:
" [1][27A. Exemptions.-
Nothing contained in section 3 and other provisions of this Act shall apply to-
[2][(a) the members of the Forces as defined in the Army Act, 1950 or the Air Force Act, 1950 and the members of Indian Navy as defined in the Navy Act, 1957 serving in any part of the State and drawing pay and allowances as Army or Air Force or Navy, as the case may be, including the members of auxiliary forces or reservists, or reserve and auxiliary services serving in any part of the State and drawing pay and allowances as such auxiliary forces or reservists, or reserve and auxiliary services, as the case may be, under the budgetary allocations of the Defence Services;]
[3][Explanation.-It is hereby declared for the removal of doubts that nothing in this clause shall apply or shall be taken to have applied during any period starting on or after the 1st May, 2000 to persons drawing pay and allowances from the establishments of the Defence Ordnance Factories situated in any part of the State.]
[4][(a-1) * * *]
(b) the badli workers in the textile industry.]
[5][(c) Any person suffering from a permanent physical disability (including blindness), being a permanent physical disability specified in the rules made in this behalf by the State Government, which is certified by a physician, a surgeon or an oculist, as the case may be, working in a Government Hospital and which has the effect of reducing considerably such individual's capacity for normal work or engaging in a gainful employment or occupations:
Provided that such individual or, as the case may be, employer produces the aforesaid certificate before the prescribed authority in respect of the first assessment year for which he claims deduction under this sub-section :
Provided further that the requirement of producing the certificate from a physician, a surgeon or an oculist, as the case may be, working in a Government Hospital shall not apply to an individual who has already produced a certificate before the prescribed authority under the provisions of this sub-section as they stood immediately before the 1st day of April 1995.
Explanation.-For the purpose of this sub-section, the expression "Government Hospital" includes a departmental dispensary whether full time or part time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants;]
[6][(d) Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana of Directorate of Small Savings.
[7][(e) Any person with Intellectual and Development Disabilities (Mental Retardation) specified in the rules made in this behalf, which is certified by a psychiatrist working in a Government Hospital and which has the effect of reducing considerably such individual's capacity for normal work or engaging in a gainful employment or occupation and parents or guardian of such person:
Provided that, such individual or, as the case may be, employer produces the aforesaid certificate before the prescribed authority in respect of the first assessment year for which he claims deduction under this clause.
Explanation.- For the purpose of this clause, the expression “Government Hospital” shall have the same meaning as assigned to it in clause (c);]
[8][(f) the person who have completed the age of sixty-five years.]
[9][(g) parents or guardians of a child suffering from a physical disability as specified in clause (c);]
[10][(h) the armed members of Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 (66 of 1949) applies and the armed members of the Border Security Force, to whom the Border Security Force Act, 1968 (47 of 1968) applies and serving in the State.]
[1] Section 27A was inserted by Mah. Act .No.21 of 1976
[2] Clause (a) was substituted by Mah. Act. No.12 of 1991 dt.27.3.1991 and shall be deemed to have been substituted with effect from the 1976
[3] This Explanation was inserted by Mah. Act. No.51 of 2000
[4] This clause was inserted by Mah. Act. No. 9 of 1997, w.e.f. 1.10.96 and was deleted by Mah. Act. No.22 of 2000 dt. 28.4.2000. Prior to its deletion it read as under:
“(a-1) persons on the establishment of Defence Ordinance Factories in any part of the State;”
[5] This Clause was substituted by Mah. Act. No.19 of 1996, and shall be deemed to have been substituted w.e.f.1.4.1995.
[6] This clause was inserted by Mah.Act.No.9 of 1989, w.e.f. 1.4.89
[7] Clause (e) was inserted by Mah. Act. No. 16 of 1995, w.e.f.18.8.95 and then substituted by Mah. Act. No. 27 of 2014, dt. 26.6.2014, w.e.f. 26.6.2014, Prior or its substitution it read as under:-
“(e) parents of the mentally retarded child:
Provided that such mental retardation shall be duly certified by a registered medical practitioner;”
[8] Clause (f) was inserted by Mah. Act. No. 16 of 1995,w.e.f.18.8.95.
[9] This Clause was inserted by Mah.Act.No.19 of 1997 w.e.f.1.10.96.
[10] Clause (h) inserted by Mah. Act. No. 15 of 2016, dt. 26.4.2016, w.e.f. 1.4.2016......"
From India, Bangalore
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