What infancy protection is available under payment of bonus act . How to reckone commencement date /period if partial production
is only achieved that too even after five years.No profits earned by the unit in any year. production is only 70% of production capacity.
From India, New Delhi
is only achieved that too even after five years.No profits earned by the unit in any year. production is only 70% of production capacity.
From India, New Delhi
About reckoning the " INFANCY PERIOD " for the purpose of the newly set-up establishment's liability to pay bonus under the Payment of Bonus Act,1965, I feel that had the Questioner made some in-depth study of Section 16 of the Act which elaborately lays down the special provisions with reference to certain establishments in respect of payment of bonus, it would have been better to present his queries on the subject more specifically.
Anyhow, let me answer in a broad manner so that it may give rise to specific questions after his browsal of the relevant section with reference to my brief answer.
The infancy period does not cover simply the 5 consecutive years from the year of the inception of the establishment. On the contrary, it only originates from the year in which the goods produced or manufactured in the establishment are sold or services are rendered by the establishment as the case may be and profits are derived.
The application of the principles of set on and set-off u/s 15 of the Act and as illustrated in Schedule Four would commence only from the 6th year onwards.
From India, Salem
6016Anyhow, let me answer in a broad manner so that it may give rise to specific questions after his browsal of the relevant section with reference to my brief answer.
The infancy period does not cover simply the 5 consecutive years from the year of the inception of the establishment. On the contrary, it only originates from the year in which the goods produced or manufactured in the establishment are sold or services are rendered by the establishment as the case may be and profits are derived.
The application of the principles of set on and set-off u/s 15 of the Act and as illustrated in Schedule Four would commence only from the 6th year onwards.
From India, Salem
First of all, in general your commencement of production is taken on record from the date of your first invoice for establishing the accounting year and it is not linked with the capacity utilization whether it is 100% or 30%.
As far as infancy period is concerned, in your case please refer to section 16 (1-A) which says " in the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured or services rendered, as the case may be, the bonus will be payable only in respect of the accounting year in which the employer derives profit from the establishment...........
P K Sharma
From India, Delhi
As far as infancy period is concerned, in your case please refer to section 16 (1-A) which says " in the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured or services rendered, as the case may be, the bonus will be payable only in respect of the accounting year in which the employer derives profit from the establishment...........
P K Sharma
From India, Delhi
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