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Can professional tax paid be claimed as expense by company

Naresh (Student CA Final ) (29 Points)

28 November 2013

Can Professional Tax paid by a company (for itself) be claimed as an expense if, yes then please share d relevant section or circular supporting d answer

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37 Replies

Sachin More (MBA-Finance Executive - accounts & Finance) (422 Points)
Replied 28 November 2013

i think we cant.....let c others replies

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sanjana (article) (80 Points)
Replied 28 November 2013

Yes Professional tax paid by a company can be claimed as deduction under section 37(1). it is a business expenditure.

satyendra (Articled Assistant) (30 Points)
Replied 28 November 2013

profession tax paid by the company for itself is definitely an expenditure for it. But the 1 which is deducted from the salaries of employees and subsequent are deposited into the account government is not an expense for the company company is just collecting and depositing it.

1 Like

kapil pingolia (B.com (H) from Hansraj College) (55 Points)
Replied 28 November 2013

Yes...it can be claim

ashwin bhandari (proprietor) (23 Points)
Replied 28 November 2013

It can be claimed u/s 37(1)

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rishabh (artical) (23 Points)
Replied 28 November 2013

Yes we claim as it is indirect tax

ACS Gaurav Jain (company secretary) (551 Points)
Replied 28 November 2013

No it can not claimed. You alredy claimin salary as exp. And after deductiong professional tax from salary you again want to claimed prof tax as exp. How can you claim double deduction. Its only statuutory liability of your . and just like tds on salary.. You cant claim employee tds as exp. You cant claim prof tax..

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vasanthalakshmi (Student CA Final ) (64 Points)
Replied 28 November 2013

Originally posted by : ACS Gaurav Jain

yes i agree

Shulabh Khandelwal (Job) (23 Points)
Replied 28 November 2013

Mr. Gaurav jain, you are getting confused, he has enquired about proff tax paid by com for itself, not about proff tax deducted from salary. Therefore, no double deduction would be there.

abhinav (acc) (21 Points)
Replied 29 November 2013

I agree with shulabh khandelwal that gaurav jain is confused.

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Nikhilesh (Articled Assistant) (41 Points)
Replied 29 November 2013

we can very claim it as exp. I did so in our clients accounts.

C.A Basant Raj kabra (no) (59 Points)
Replied 29 November 2013

Yes its allowed however paid on the behalf of directors are not allowed

sarath (CA) (82 Points)
Replied 29 November 2013

Yes, Professinal Tax Paid by the Company 'For Itself' Can be Claimed as a 'Business Expense'.

It is Allowable Expense Under Section 37.

Refer the Analysis of Section 37 on the Link: https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-37

CA PRIYUL SHAH (JOB) (901 Points)
Replied 29 November 2013

First let you know that professional tax is a direct tax. It is not a indirect tax because it is tax on your income (Salary) . As you know that direct tax paid will not allowed as expense.

So, you can not charge it against income of company even though company has paid it.

Have a nice day...