We are new Pvt Ltd company and a max 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 state where PT is not eligible like Chattisgarh, so how to handle the scenario?
Please do share some govt docs citing this case.
Please do share some govt docs citing this case.
Profession tax applies to people working in a particular state, basically in a particular office.
If you have people working remotely, then PT is not payable for them in the place where your HO is.
You may need to pay their PT in the state where they are actually working. However, the act was not designed with WFH in mind and therefore this is untested territory. I don't think you can register for PT in a state where you don't have an office, so you need to check the definitions and provisions of the relevant state acts to decide what to do
From India, Mumbai
2393If you have people working remotely, then PT is not payable for them in the place where your HO is.
You may need to pay their PT in the state where they are actually working. However, the act was not designed with WFH in mind and therefore this is untested territory. I don't think you can register for PT in a state where you don't have an office, so you need to check the definitions and provisions of the relevant state acts to decide what to do
From India, Mumbai
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.
For those in states where there is no PT applicable, definitely you don't need to pay it.
For others, the matter is not 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
For others, the matter is not 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
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.
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
From India, Mumbai
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
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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Employee Appraisal Form new.doc