Sir,

We have employees working in five cities: Delhi, Mumbai, Kolkata, Bangalore, and Hyderabad, but the payroll for all our employees is processed in Chennai. Kindly clarify the following:

1. Is Chennai Corporation Profession Tax applicable to employees working in other states?
2. If it is not applicable, do we need to deduct and remit the professional tax applicable to those states?

Thank you.

From India, New Delhi
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Please provide more details. Do you have separate offices at different locations? If so, have you obtained licenses under the Shop & Establishment Act of the respective states?

If you have branch offices at different locations and are registered under the Shop & Establishment Act or Factories Act, you must obtain the Enrollment and Registration Certificate under the respective state's Profession Tax.

From India, Pune
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Professional tax is levied by Local Bodies from the residents practicing any profession and thereby earning income within their territorial jurisdiction. So, the professional tax due for Chennai Municipal Corporation need not be deducted from the employees of your branches elsewhere.

The P.T due to the place of work needs to be deducted and paid over to the respective Local Body by the concerned Pay Master or by the head office in case of centralized payment of salaries to all employees of the Company.

From India, Salem
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Hi, Umakanthan.M

Our company is a Pune-based company, and one of the employees has been working from home (in Gujrat) since his appointment. We are currently paying Professional Tax under the Maharashtra State Tax on Professions, Trades, Callings, and Employments Act of 1975.

Is this correct, or do we need to pay Professional Tax to the Gujarat State?

From India, Mumbai
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