I seek your esteemed guidance on the below matter.
One of our companies got its incorporation certificate back in the year 2013. However, it remained dormant without any business activities until March 2021. Consequently, for the fiscal years 2013-2014, 2014-2015, 2015-2016, 2016-2017, 2017-2018, 2018-2019, 2019-2020, and 2020-2021, there was no operational business, and no employees were engaged as per the balance sheets during this period.
It was only from April 1, 2021, that we initiated operations and onboarded employees, marking the commencement of our restaurant business. Technically speaking, this company began its operations and revenue generation from this date i.e. 1st April 2021 onwards.
Now, my question is: Are we legally obligated to pay bonuses for the year 2022-23?
Should the criteria for Bonus exemption in the first five years be applied from the date of the company's operations and the date when employees were brought on board, which is April 1, 2021, OR from the date of its incorporation in 2013?
Your insights on this matter would be greatly appreciated.
From India, Mumbai
One of our companies got its incorporation certificate back in the year 2013. However, it remained dormant without any business activities until March 2021. Consequently, for the fiscal years 2013-2014, 2014-2015, 2015-2016, 2016-2017, 2017-2018, 2018-2019, 2019-2020, and 2020-2021, there was no operational business, and no employees were engaged as per the balance sheets during this period.
It was only from April 1, 2021, that we initiated operations and onboarded employees, marking the commencement of our restaurant business. Technically speaking, this company began its operations and revenue generation from this date i.e. 1st April 2021 onwards.
Now, my question is: Are we legally obligated to pay bonuses for the year 2022-23?
Should the criteria for Bonus exemption in the first five years be applied from the date of the company's operations and the date when employees were brought on board, which is April 1, 2021, OR from the date of its incorporation in 2013?
Your insights on this matter would be greatly appreciated.
From India, Mumbai
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Company Profile.ppt
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