Hi All,
I am working with a US based MNC and we have our office in Delhi/NCR.
I have query regarding applicability of professional tax in Karnataka.
1. We have one employee, who is working for our company, but he is not coming to office and working from his home, based in Bangalore (Karnataka).
In this case, do we need to deduct professional tax from employee or not? Because we do not have office in Karnataka.
2. Also please expedite, is there any income tax liability arise (in terms of perquisites) if employee is not coming to office and working from his home.
I am waiting for your valuable inputs.
Regards,
Manish Aneja
From India, Delhi
I am working with a US based MNC and we have our office in Delhi/NCR.
I have query regarding applicability of professional tax in Karnataka.
1. We have one employee, who is working for our company, but he is not coming to office and working from his home, based in Bangalore (Karnataka).
In this case, do we need to deduct professional tax from employee or not? Because we do not have office in Karnataka.
2. Also please expedite, is there any income tax liability arise (in terms of perquisites) if employee is not coming to office and working from his home.
I am waiting for your valuable inputs.
Regards,
Manish Aneja
From India, Delhi
Hi Manish,
1. As the employee is on the payrolls of the company and the company is having its registered office in Delhi, it doesn’t matter if he works from home or office. You don't need to deduct professional tax as PT is not applicable in Delhi/NCR.
2. If any of his household expenses eg. electricity bill, maintenance bill, etc. are being paid by the company directly or reimbursed to him, then it will be termed as perquisite and taxed accordingly. Otherwise there is no perquisite, hence no income tax liability.
Please let me know if I can help you any further.
Regards.
Manager
TopSource Global Solutions
About Topsource: Topsource is a global service provider of end-to-end Payroll, HR, Accounting and Administrative Services.
From India, Pune
1. As the employee is on the payrolls of the company and the company is having its registered office in Delhi, it doesn’t matter if he works from home or office. You don't need to deduct professional tax as PT is not applicable in Delhi/NCR.
2. If any of his household expenses eg. electricity bill, maintenance bill, etc. are being paid by the company directly or reimbursed to him, then it will be termed as perquisite and taxed accordingly. Otherwise there is no perquisite, hence no income tax liability.
Please let me know if I can help you any further.
Regards.
Manager
TopSource Global Solutions
About Topsource: Topsource is a global service provider of end-to-end Payroll, HR, Accounting and Administrative Services.
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Professional tax hyderabad.doc
Professional Tax.zip
Professional Tax 01-Apr-2009.pdf