Primary Responsibility for Deduction and Payment

• Under professional tax rules, an employer is the person, authority, or organization responsible for paying salary or wages to one or more employees.
  
• The employer is legally obligated to deduct professional tax at source from eligible employees and remit it to the state government.
  
• This includes maintaining records, filing returns, and ensuring compliance with all PT regulations.
  
• The employer is the entity listed in the Professional Tax Registration Certificate (PTRC).
  

Entities Covered Under Employer Definition

• The term includes various types of employing bodies such as:
  
  • Companies (private limited, public limited).
    
  • Partnership firms and LLPs.
    
  • Proprietorships with salaried staff.
    
  • Government departments, municipal bodies, and public sector undertakings.
    
  • Trusts, societies, and educational institutions employing individuals for wages.
    

Delegation to Responsible Officers

• In practice, the employer’s PT responsibilities may be carried out by a designated officer such as:
  
  • Director or managing partner.
    
  • HR or payroll head.
    
  • Drawing and Disbursing Officer (DDO) in government offices.
    
• This officer acts on behalf of the employer for filing, signing, and submitting PT documents.
  

Employer’s Legal Liabilities

• The employer is held accountable for:
  
  • Timely PT deduction and payment.
    
  • Filing accurate returns within due dates.
    
  • Maintaining employee records and challans.
    
  • Paying penalties, interest, or fines for non-compliance.
    
• Any failure may result in inspection, penalties, and legal proceedings against the employer.
  

Employer in Multi-State or Branch Scenarios

• If an organization operates in multiple states or branches, it may need to register and act as an employer in each jurisdiction separately.
  
• Each branch may be treated as an independent employer under certain state laws for PT compliance.
  
• The head office must ensure consolidated oversight to avoid jurisdictional defaults.