Professional tax Madhya pradesh

[Former Member]

Hi experts

I am new to SAP. How does professional tax Madhya Pradesh work? Now if the yearly gross is more than 180000 then Ptax of Rs 2500 which is further divided as 208/month till Feb and in march 212.

For an employee Ptax is getting deducted for one month and not for other. I mean is the system acting correctly?

Whenever the Ptax basis increases 1.8Lac then there is Ptax deduction of Rs 208 and whwen the Ptax basis is less than 1.8 Lac then there is no deduction. If this is correct then is it ok that for a month Ptax is deducting 208 and for another there is no Ptax?

[Former Member]

Hi,

system is calculating correctly. Hence Ptax for MP is yearly once and you changed it to month wise deduction and it will check the Ptax basis amount for calculating Ptax deduction for the month and accordingly it will deduct.

[Former Member]

But if we don't think in SAP terms and think it in business terms, is this behavior correct? Like for every month it is checking Ptax basis and whenever it is finding it less than 1.8 Lac it wont deduct. This way there is no consistency in the system for deduction? What can be done to bring consistency in the system.

[Former Member]

It will check monthly 15K (1.8/12) and ptax deduction will calculate accordingly after checking the Ptax slabs.