Profession tax deduction.

Tax queries 325 views 2 replies

If a person is employee of a company and profession tax is deducted from salary. He is doing his own business also, and there are some employees also. Will he be required to pay Profession tax for this business also.?

Replies (2)

Hi Ejaz,

 

PT is a deduction from the salary of the employee, which employer has liability to collect and remit to the state government... The deduction is as per the slabs of salary prescribed...

PT is governed by state laws

 

Where I come from, every employer has the liability to collect and remit PT to the Govt irrespective of the number of employees or type of organisation (whether company/proprietor/whoever)

 

In your case, the liability is on the person carrying on the business, whether he has other incomes or not... See the state law....

My query if the person is liable to pay profession tax on his on behalf (for carrying on business)? Beacause his profession tax has been deducted by his employer. and if he pays profession tax again it will double payment of profession tax.

My next query is if he does not pay the profession tax of the employees, after collecting it form his employees then whther this non payment will disallow all of the salary paid by him to his employees or only to the extent of non payment of profession tax.


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