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Dear Rajeshwari Professional Tax varies from state to state, hence refer your state laws for Professional Tax
From India, Ahmadabad
From India, Ahmadabad
I presume you are dealing with national income tax for your executives. Taxation of expatriates working in India is handled differently. You need to know the tax regulations of their home country and whether India and the respective country have a double taxation agreement.
From Singapore, Singapore
From Singapore, Singapore
Professional Tax is calculated based on the amount of salary/wages drawn by an individual. PT is a State Government monthly taxation and is calculated on a "Sliding Scale" (higher income, higher tax rate subject to a maximum) which varies from state to state. It is deducted from employees' salary and deposited to the bank authorized for collection through an appropriate challan.
The finer point here is that along with Professional Tax, the Authority also charges something called the "Enrollment Fees" on a yearly basis from the Company. This fee is much higher than the PT, and it is said that "since the Company too is in profession," they must pay tax.
PT is more critical for Construction Companies because the Taxation Authority does not spare even the Construction Workers and charges PT on wages paid to each. This is indeed a difficult proposition and costs a lot to the Company since recovery from Workers brings unrest. With the recent enhancement of Wage Rates, the absolute amount payable becomes significant, and there is no escape route.
Regards,
From India, Pune
The finer point here is that along with Professional Tax, the Authority also charges something called the "Enrollment Fees" on a yearly basis from the Company. This fee is much higher than the PT, and it is said that "since the Company too is in profession," they must pay tax.
PT is more critical for Construction Companies because the Taxation Authority does not spare even the Construction Workers and charges PT on wages paid to each. This is indeed a difficult proposition and costs a lot to the Company since recovery from Workers brings unrest. With the recent enhancement of Wage Rates, the absolute amount payable becomes significant, and there is no escape route.
Regards,
From India, Pune
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