Professional Tax

This query is : Resolved

Sugan (Querist)
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05 April 2008 Hi All,

Kindly provide suggestion for the following situations for deducting professional tax:

1. An employee works till October 2007 during the FY-2007-08. Employee left the company without any intimation.
Therefore, the company terminated the employee from their payroll, only in December 07. (Salary not processed during the period of leave)
For the purpose of computation of gross salary for professional tax,whether the salary for October and November 2007 is to be considered?

2. If the employee is in leave for the period October 2007 to January 2007 (Salary not processed during these period), whether professional tax is to be deducted?

3. Employee received salary for the period October to december 2007. He is in leave for the period january 2008 to March 2008. When will be the professional tax deducted for the half yearly period October 2007 to March 2008?

Thanks and Regards

V.S.Sugan
(E-Mail: v_s_sugan@yahoo.com)

CA. Vineet Grover

CA. Vineet Grover (Expert)
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07 April 2008 Hi Sugan,

The incurrence of profession tax liability arises on recognition of liability.

If the liability of salary of the employee need to be recognized on books profession tax has to be deducted and deposited.

Rgds/
Vineet