Multiple Factories in the same premises

saravanarajan · #1 (**permalink**) 26-06-2008, 12:29 PM

Hi All,

Can anyone pls provide some inputs ?

In case of more than one factories situated in the same premises and the different factories are engaged in the same business, having different business licenses respectively,

HOW DOES THE LAW APPLY?
FOR APPLYING LAW, THE INDIVIDUAL WORKFORCE STRENGHT IS TAKEN INTO CONSIDERATION OR THE TOTAL STRENGTH IS CONSIDERED????

PLS CLARIFY

THE FACTORY DOES NOT HAVE ANY VALID DOCUMENT TO CALL ALL THE FACTORIES AS A SINGLE FACTORY OR SO.

Thanks & Regards
Saravana Rajan.

Madhu.T.K · #2 (**permalink**) 26-06-2008, 04:38 PM

If the different factories have different factory licence, different power connections, different Sales Tax and or Central Excise registraion, then these factories will not be counted as one for the purpose of deciding the strength of employees. Each one can have separate muster rolls, etc.

Regards,

Madhu.T.K

saravanarajan · #3 (**permalink**) 27-06-2008, 05:48 PM

Thnx for the reply.

In this case, the factory does not have anything different apart from factory licenses.

They are using the common place to record attendance / process wages / entry / exit / common boiler / common diesel generator etc.

Moreover, the process in all the three factories are the same / inter related.

Pls quote if there are any law citations to prove that this is a single factory.

Thnx
Saravana Rajan.

Madhu.T.K · #4 (**permalink**) 28-06-2008, 10:43 AM

With different factory licence there cannot have single sales tax/ central excise registration. If you have only one RC for ST/ Central Excise, it shall be deemed as a syndicate of different factories manufacturing a single product. In your case, it is deemed that all employees sign the same register for attendance, wages etc. In such case, all the employees will be put together to decide the strength of employees.

Regards,

Madhu.T.K

Jenender Chawla · #5 (**permalink**) 28-06-2008, 05:14 PM

Hi saravanarajan,
1) Entrances/exits are considered, for separate entity they should be kept separate for separate units..
2) MD/Directors of the companies will be checked, at the time of inspection to prove relationship inbetween..
3) Having Separate licenses has made you strong on this..
4) Go to Vakilno1.com for further Legal Help or queries..

Regards

Quote:

Originally Posted by saravanarajan

Hi All,

Can anyone pls provide some inputs ?

In case of more than one factories situated in the same premises and the different factories are engaged in the same business, having different business licenses respectively,

HOW DOES THE LAW APPLY?
FOR APPLYING LAW, THE INDIVIDUAL WORKFORCE STRENGHT IS TAKEN INTO CONSIDERATION OR THE TOTAL STRENGTH IS CONSIDERED????

PLS CLARIFY

THE FACTORY DOES NOT HAVE ANY VALID DOCUMENT TO CALL ALL THE FACTORIES AS A SINGLE FACTORY OR SO.

Thanks & Regards
Saravana Rajan.

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