GPIND : Professional Tax Implementation for New States
(Doc ID 1992036.1)
Last updated on FEBRUARY 06, 2019
Applies to:PeopleSoft Enterprise HCM Global Payroll India - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
Professional Tax is the levy charged by the State Governments in India. Any individual earning an employment income from salary or any one practicing a profession are required to pay this professional tax. Different states have different rate and methods of levy calculation. In India, the professional tax is imposed at the state /district level.
Customers are required to comply with this legislation and make necessary Professional Tax deduction based on each state slab where an employee is rendering his/her services.
Existing GP India Design:
As per current Global Payroll for India, the delivered business process is
- PT is supported only for selected few states
- PT can only be defined at state level
- Supports only limited exemptions/exceptions to the provisions
- Professional Tax cannot be defined at municipal/district level. Delivered solution only supports PT deduction at state level and not all states are supported.
- Does not support Industry based exemptions
- Each state, district has different types of exemption categories. Delivered solution does not support all exemption categories by state or municipal
- If customers want to add new states/district, they have to clone all PT elements and rewrite all rules around the state/district.
Workaround solution to the current requirements:
Currently there are no known workaround solutions apart from cloning all required PT rules and customizing the delivered solution.
- Provide a new setup/framework to configure new states and municipals
- Deliver setup data for currently supported states in the GP India product
- Customers can add new states and municipals, which are not currently delivered in the PeopleSoft System. Customers will have flexibility to maintain PT setup data like tax brackets, exceptions, exemptions, deduction periods, etc.,
- Customer can evaluate the new design and adapt when they are ready to uptake the new PT setup/framework. A switch option has been provided and once enabled payroll will start referring to new setup.
- As part of PT feature uptake, customers have to add a new effective dated row (preferably) and assign PT state/district municipals, exceptions & exemptions to the rule etc., on the maintain employee tax component. The PT calculation will refer to above data and process the PT deduction.
For 9.2 Release <Bug 21558548>- PUM Image 14
For more info on the patch, please find attached the PT frame work document.
You need to apply the critical P1 patch / GP Update whenever their legislative fixes are posted.
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