Profession tax - Director

This query is : Resolved

sushil (Querist)
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04 July 2010 Dear all,

director of our company who is having own p.t. registration number is also employed in another company & receives salary, net of profession tax deduction i.e.rs.200/- p.m.
As he is director of our company, we pays p.t. - director Rs.2500/- from companys a/c & shows expenses of company.

our C.A. is saying that we dont need to pay Director's p.t.

pls give me proper solution on this.

thanks in advance.

sivadas chettoor

sivadas chettoor (Expert)
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04 July 2010 Assuming that the director is not in the employment of the company, there is no need for the company to pay the prof tax of the director.If there is no such obligation then it should be treated as loan to him to be recovered.