Not Manufacturing Start - CiteHR
Kknair
Hr, Ir, Law, Disc. Matters
KAMBOJ GANDHI
Senior Hr Executive
+2 Others

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Dear sir,
My self lovely and i am as Senior HR Executive in Measuring tape manufacturing industry. This is a new industry and is installing machines. 22 Employees is working in our company 3 staff and 19 workers. But i am showing only 9 employees in our attendance register. I have talked to our employer about this but he said to me there is no manufacturing process start. So, we can do this. Sir pls suggest me that is right. i think that it creates big problem for me.

Sub-Manufacturing process

This reply is only to enlighten you about the definition of factory but has nothing to do about the validity of your action of showing nine employees instead of 22 employees since there are other labour enactments which govern various labour issues.

In terms of Sec.2(m) of the Factories Act, a premises becomes factory only when the manufacturing procees is carried on such premises with the help of power with ten or more workmen or when the manyfacturing process is carried on without the help of power with 20 or more workers.Thus the manufacturing process should be in progress in order to make that premises a factory. In your case, no manufacturing process is carried on and only machines are being installed. Therefore in my opinion, the premises cannot be called a factory.

In Seelan Raj V.Presiding officer Add.lab.Court, chennai, 2001 II LLJ 1335, the Apex court held that mere installation of data processing unit would not convert it into a factory.

B.Saikumar

HR & Labour Law consultant

Chipinbiz Consultancy Pvt.ltd.

Mumbai

Dear Gandhi & sai Kumar, It is correct that since the manufacturing process has not yet started it will not be a Factory, but at the same time there could be liability under other laws like PF, ESI, Building Construction Workers Act, Labour Welfare Fund Act etc which needs to be looked into. KK Nair
We deal in drip irrigation which is billed to farmers on 100 % subsidy.We buy from local market and bill to a) Farmers directly on NIL tax rate and b) to Dealers on NIL tax rate. But we buy from the manufacturers @ 4% and 12.5%.
My doubt is
1) Is it write to bill on NIL % to dealers
2) When we purchased from local manufacturer @4% and 12.5% tax and bill @NIL rate how do we claim input tax credit.
Please advise with GO details.
Regards,

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