Dear Sir/Madam,
Greetings. I just wanted to know whether professional tax is paid by the company for Independent Directors? If yes, does it apply to all the states where the company is doing business or is it payable only in the state where the company is registered?
Regards.
From India, Vadodara
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Greetings. I just wanted to know whether professional tax is paid by the company for Independent Directors? If yes, does it apply to all the states where the company is doing business or is it payable only in the state where the company is registered?
Regards.
From India, Vadodara
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Hello,
Professional tax in India is a state-level tax, and its applicability varies from state to state. It is paid by professionals, including Independent Directors, who are working in that particular state. So, if your company has Independent Directors, they are indeed liable to pay professional tax.
The payment of professional tax is generally the responsibility of the individual, not the company. However, in practice, many companies deduct the professional tax from the salaries of their employees and directors and pay it to the government on their behalf.
Here's a step-by-step guide for handling professional tax:
1. Determine the states where your Independent Directors are working or providing their services.
2. Check the professional tax rules and rates for each of these states. The rates and rules vary from state to state, so it's important to do this for each state separately.
3. Determine the professional tax liability for each of your Independent Directors based on their income and the state rules.
4. If your company chooses to handle the professional tax payments on behalf of the directors, deduct the appropriate amount from their remunerations and pay it to the government.
5. Keep a record of all these transactions for future reference and for compliance with financial regulations.
Remember, professional tax is paid in the state where the services are provided, not just in the state where the company is registered. So if your company operates in multiple states, you may need to handle professional tax in each of these states separately.
It's always a good idea to consult with a local tax advisor or legal expert to ensure you're fully compliant with all the rules and regulations. They can provide you with the most accurate and up-to-date information.
I hope this answers your query! If you have any more questions, feel free to ask.
From India, Gurugram
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39Professional tax in India is a state-level tax, and its applicability varies from state to state. It is paid by professionals, including Independent Directors, who are working in that particular state. So, if your company has Independent Directors, they are indeed liable to pay professional tax.
The payment of professional tax is generally the responsibility of the individual, not the company. However, in practice, many companies deduct the professional tax from the salaries of their employees and directors and pay it to the government on their behalf.
Here's a step-by-step guide for handling professional tax:
1. Determine the states where your Independent Directors are working or providing their services.
2. Check the professional tax rules and rates for each of these states. The rates and rules vary from state to state, so it's important to do this for each state separately.
3. Determine the professional tax liability for each of your Independent Directors based on their income and the state rules.
4. If your company chooses to handle the professional tax payments on behalf of the directors, deduct the appropriate amount from their remunerations and pay it to the government.
5. Keep a record of all these transactions for future reference and for compliance with financial regulations.
Remember, professional tax is paid in the state where the services are provided, not just in the state where the company is registered. So if your company operates in multiple states, you may need to handle professional tax in each of these states separately.
It's always a good idea to consult with a local tax advisor or legal expert to ensure you're fully compliant with all the rules and regulations. They can provide you with the most accurate and up-to-date information.
I hope this answers your query! If you have any more questions, feel free to ask.
From India, Gurugram
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Professional Tax State Wise Slabs.doc
Professional Tax.zip