I am associated with a company registered under the Shops and Establishment Act in the state of Gujarat. Most of our employees are covered by the Sales Promotion Act and are based all over India for fieldwork.

We have recently opened a branch office in Pune with only one office staff member. Our query pertains to where we should submit the Professional Tax and challan payment for the Maharashtra Labour Welfare Fund (MLWF). Should we recover it from the employees based on the slab defined under the Gujarat State or Maharashtra State? We look forward to a prompt and effective reply.

From India, Ahmedabad
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Hi Krishna, Professional Tax has to be paid as per the state slab rate / Municipal Corporate slap rate, where the branch is located. Regards, Pragnaa HRCS
From India, Chennai
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Dear Pragnaa,

Thanks for the reply, but this is to inform you that we are already paying the Professional Tax separately for the branch that's located in Pune, Maharashtra. However, my question is about the Maharashtra Labour Welfare Fund. In other states where we do not have a branch office, we are making deductions as per the Gujarat LWF slab only. However, in the case of the Pune branch, we have confusion about which state norms we must follow in LWF: Gujarat or Maharashtra?

Please resolve my query.

Krishna
Manager-HR & Admin

From India, Ahmedabad
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Dear Krishna,

Since you have established a separate branch in Maharashtra (hope, this must be registered under the Shops & Establishment Act), LWF needs to be remitted as per Maharashtra slab rate.

Regards,
Pragnaa HRCS


From India, Chennai
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