Professional Tax Calculation

[Former Member]

Hi Friends

Is Ptax is gross amount based or Gross earnings based??

As of my knowledge it is Gross Amount based means based on the IT 0008 Structure and upto 5K there is no Ptax as per currant slabs.

But My client is telling that the slabs should be applicable on Gross earnings. so in particular month an employee who comes under Ptax eligibility may not deducted the tax coz of LOP or any other reason in that specific month.

and an employee whose salry is less than 5k may get more than the 5k coz of OTs and any other earnings, in such case the Ptax should be deducted in that particular month.

so in this case how could i go about, do i need to maintain the Ptax eligibility for all employees in IT 588?? and is it correct PTAX config?? Mine is Indian payroll.

plz guide me in this issue.

Thanks

Lakshmi

[sikindar_a]

PT is based on the Gross

Check the node Pay roll -PAY roll india - social security u will get PTAX Configuration nodes

u have to take the Slab rates form the Client and apply it

[Former Member]

sikinder,

plz read my thread completely, plzzzzzz

[Former Member]

hi

PTax will be deducted based on your gross earnings. and it is difeerent from state to state. in that gross earnings also client has to decide what are all the wage types should be P.Tax based what should not be.

so u have to do entire configuration for P.Tax deduction and u have to maintain all the employees P.Tax eligibility infotype i.e. 588 while from his hiring date.

further any clarification post the thread

[sikindar_a]

Lakshmi Got u

wht ever might be the scenario

even it he gets less that 5000 or more than 5000

PTAX is statutory one check whether he is paying tax to the government

and all the additions will not add up to Basic pay but they are Addition to the Existing one right

first check this one later we will come accross the possibilites

in case of LOP if he was fully absence than no salary is paid right so how he is eligible to pay PTAX

and Ptax will be paid only on the basis of Base componenets

if he was haveing LOP than there might be cut in gross salary so baseing on that Limit Ptax will be caluculated

and if he is getting OT than that OT shd be added to Gross Salary but it shd not be PTAX Basis

Edited by: Sikindar on Jun 5, 2009 1:16 PM

[Former Member]

Thanks for ur valuable inputs,

and how could i include wage types under ptax based??

Regards

Lakshmi

[sikindar_a]

Check CC 18 PT basis in V_512w_D

[Former Member]

hi sikinder

i have checked there, what to do plz tell me clearly

[sikindar_a]

when an employee is on LOP the it will get paid based on the Prorate so tht is not an issue

when an employee gets OT which is additional payment that wage shd not be Added to Gorss Salary and CC 18 shd not be ticked check this one

in V_512w_d

Edited by: Sikindar on Jun 5, 2009 3:43 PM

[Former Member]

LOP means LOSS OF PAY, so payment will be deducted its not an paid absence.

and OT is added to gross earnings here, so both are valid in this case.

and CC 18 is also checked here.

[sikindar_a]

That wht iam saying

say if an Employee gets LOP based on that pay only he will be eligible for PTAX

say his Gross is 10000 his PTax slab is 100 and he gets 25 rs deducted

where due to LOP his salary is 5000 and below 5000 there is not PTAX than he is not eligible for PTAX right

for OT Cases why ur client want in this way generally the amount will get added to gross and there will be change in the Gross

in ur case the OT shd be added to gross but the Ptax shd be paid on the amount excluding the OT amount right

[Former Member]

no

[sikindar_a]

Can u send me ur requirment to me

check my Bcard will check and let u know