Professional tax on salary

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Mayuri Nikunj Variava (Querist)
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15 July 2013 If one person working in one trust.But she received salary from two different trust but the one main trusty name is common. Than professional tax deducted from one trust only or from both the trust professional tax deductable.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 July 2013 Professional tax applicable based on salary slabs, may be one trust she may not crossed the PT deductible slab

Mayuri Nikunj Variava

Mayuri Nikunj Variava (Querist)
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28 September 2013 In case of prepaid expenses we take prepaid expenses amt of before tax or inclusive of tax. Please give me answer.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 September 2013 unable to understand your question. please explain

Mayuri Nikunj Variava

Mayuri Nikunj Variava (Querist)
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30 September 2013 I m working in school. We purchased workbook from one party. In his bill no vat tax apply. So I have to deduct tds if the bill is above Rs.30000/-. Is tda applicable on books puchased.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 ### **Professional Tax on Salary:**

If a person is employed by two different trusts, even if they have the same main trustee, the professional tax (PT) liability needs to be assessed based on the salary received from each trust. Here’s how you should approach it:

1. **Professional Tax Deduction:**
- **Individual Trusts**: Each trust is responsible for deducting and paying professional tax on the salary it pays to the employee.
- **Separate Calculation**: Professional tax should be calculated separately for the salary received from each trust. This is because each trust is treated as a separate entity for professional tax purposes.

**Example:** If Trust A pays ₹15,000 per month and Trust B pays ₹10,000 per month, both trusts need to deduct professional tax based on their respective salary payments.

2. **Exemption and Limits:**
- **Aggregate Salary**: In some jurisdictions, there may be an aggregate salary limit beyond which professional tax is applicable. You need to check if any such limit applies and if it allows for exemption in one of the trusts.

### **TDS on Purchases:**

1. **TDS on Books Purchased:**
- **Nature of Expense**: Generally, TDS is not applicable on purchases of books or educational materials if the bill is for the purchase of books and not for professional or consultancy services.
- **TDS Applicability**: TDS is typically applicable to payments made for services, contracts, rent, etc. Books and other educational materials usually fall under exempt categories unless the purchase is linked to professional services where TDS might be applicable.

2. **Bill Without VAT:**
- If VAT is not mentioned on the bill, it generally does not affect the applicability of TDS. TDS should be considered based on the nature of the payment and applicable TDS sections.

### **Prepaid Expenses:**

1. **Recording Prepaid Expenses:**
- **Inclusive of Tax**: When recording prepaid expenses, you generally record the total amount including tax. This means the prepaid amount should reflect the gross amount, including any taxes that have been paid.
- **Accounting Treatment**: Prepaid expenses are recorded as assets on the balance sheet. When accounting for these expenses, you include the total amount paid, which usually encompasses taxes.

**Example:** If you prepay ₹10,000 for an expense and VAT of ₹1,800 is included in this amount, you should record the prepaid expense as ₹11,800.

### **Summary:**

1. **Professional Tax:**
- Deduct and pay professional tax separately for each trust based on the salary paid by each.

2. **TDS on Purchases:**
- TDS is generally not applicable on books or educational material purchases.

3. **Prepaid Expenses:**
- Record prepaid expenses inclusive of taxes paid.

Always verify the current local regulations and consult a tax professional or advisor for specific guidance related to your situation.