Can professional tax paid be claimed as expense by company

Page no : 2

Sandesh (Accounts Executive) (21 Points)
Replied 29 November 2013

Professional Tax can be claimed and can be charged to p & l as it is allowable expenditure if company pays for itself. In case of professional tax deducted from employee salary it is a liability to company it can't be charged to p & l.

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MD RAZA RIYASAT HUSAIN (SENIOR ACCOUNTANT) (23 Points)
Replied 29 November 2013

ABSOLUTELY PROFESSIONAL TAX PAID BY COMPANY IS AN CLAIMABLE EXPENSE

Nishad (student) (52 Points)
Replied 29 November 2013

No it can't be claim neither under section 37(1) and nor as a indirect tax.

Sachin More (MBA-Finance Executive - accounts & Finance) (422 Points)
Replied 29 November 2013

Originally posted by : Nishad
	No it can't be claim neither under section 37(1) and nor as a indirect tax.

TRUE

Manoj Pandit (student) (139 Points)
Replied 29 November 2013

I believe If the company has paid the professional tax in the capacity of an employee it can be deductibleu/s 16 as an income from salary, but whether there's any situation that a company has to pay the professional tax in the capacity of a business entity..??

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pradeep wagh (PROPRIETOR) (22 Points)
Replied 29 November 2013

Yes professional taxes is indirect exps.

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

Dear pradeep wagh, Professional tax is a direct tax. professional tax is deducted same as TDS. How can salaried person required to pay indirect tax ?

As you know direct tax is directly linked to the income of a person & salary is direct income of a person. So professional tax is direct tax.

Ajit Yadav (CS Executive) (149 Points)
Replied 01 December 2013

Yes, employer can claimed for prof. Tax paid by employer. But only employer contribution only.

Santosh Shetty (IPCC, Asst Manager) (200 Points)
Replied 01 December 2013

Yes i agree with shulabh

PRITI TRIPATHI (Inter C.A. Pursuing C.A. Final) (44 Points)
Replied 03 December 2013

Yes we can claim it

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Sachin More (MBA-Finance Executive - accounts & Finance) (422 Points)
Replied 03 December 2013

Originally posted by : PRITI TRIPATHI
	Yes we can claim it

dear,

plz provide ref. for this ??

TonyKhatri (Article Assistant) (30 Points)
Replied 03 December 2013

https://charteredknowledge.blogspot.in/2013/12/section-371-business*xpenditure.html

(Guest)

Stranger (.) (5531 Points)
Replied 04 December 2013

As far as my knowledge is concerned, professional tax is a direct tax whether paid by the company for itself or on behalf of its employees. In case it is paid by the company for itself, it can be claimed u/s-37. But if it is paid on behalf of the employee, whether as a perquisite or as a libility after deducting it from the salary of the employee, then it cannot be claimed by the company but by the employee only u/s-16, after including it first in his salary income, provided if its a perquisite for the employee. Moreover, it is applicable to some states of india only.

Open for any further valuable comments & suggestions from my fellow members..