When deducting the PT from employees salary.Client asks challans? If contractor has not deducted the PT. Who stands responsible principal employer or contractor?
From India, Vadodara
nathrao
3131

Contractor is responsible for deduction of PT from his contractual employees. Every month the principal employer needs to check the challans for deposit of PT.
From India, Pune
This is an interesting question.For example, the contractor is located in Bangalore but deploys his staff to work at principal employer's location which is in Chennai. In this case which state's professional tax is applicable to the contractor's employees. whether it will be that of the State of Karnataka or Tamil Nadu .
B.Saikumar
HR & Labour Relations Consultant
Navi Mumbai

From India, Mumbai
nathrao
3131

Learned Saikumar,
State where employee is working will levy applicable tax.
PT is a local state tax.
Right to levy this tax is given to states through the Clause (2) of Article 276 of India’s constitution.

From India, Pune
This is true,but in the event of a credit period being applied for payments,How can a contractor deduct PT if Payment is being delayed.
While on the other hand payments are not being released due to absence of PT challan.Is this fair on part of Principal employer?

From India, Vadodara
nathrao
3131

@Learned Bijoy
Very true.
Your contract with principal employer should cover this aspect of period by which monthly bills are to be cleared.
Since PT is not a big amount per person,that much of reserve will be required by all contractors.

From India, Pune
Dear Nathrao
Greetings
Thanks for your response. Does it mean that the contractor, based at Bangalore shall deduct PT and remit to the Chennai Tax authorities since the contract workers are working in Chennai.
B.Saikumar
Navi Mumbai

From India, Mumbai
nathrao
3131

Contractor based at Chennai will have to deduct PT as he is paying workers in Chennai. PT amount will necessarily get deposited in Chennai itself. Other learned members may comment on this aspect.
From India, Pune
Glidor
632

interstate contract may be for short period, not for FULL MONTH or longer
if the contract is for FULL MONTH or longer, then the contractor has to open branch in the state of principal and make compliance, as state labor laws are prominent always


if the contract is of 312day and for to supply unskiled/skilled worker through contractor and as per new wages all salary if paid monthly goes above PT slab but if we deduct same and pay then it is below minimum wages after deduction of epf/esic how can we pay wages as per minimum wages act asthis are not my permenet worker they keep even changing as per requirment and even they are irregular one month work for 26 day and one month some work 10 days so that month he salary is not covering that slab of PT so please justfy will this is compulsary for contractor to pay PT for all as they are casual labour.
From India, Nagpur
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