Labour Law & Hr Consultant
Insolvency N Gst Professional
Senior Hr Executive

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Dear Sir, I have been working with a company with HO in a Pvt. SEZ in AP. But my location of service was Chennai and serviced this company for 7 years. In Oct 2018 I have resigned from my post for a better opportunity. The company has been delaying my F&F giving various reason. Now it is almost 7 months and I have sent Form I for recovering my gratuity. I have a doubt regarding jurisdiction. This SEZ comes in Nellore district. So if suppose company rejects my claim or give me a lesser gratuity amount where should I file Form N. Is it in Chennai or at Nellore district? Kindly advice. Thank you.
Head office/regd office is in Nellore. You can file a complaint in jurisdictional Labour Commissioner office there.
See you can calculate Gratuity on minimum BASIC and DA on any year by doing this formula and( (BASIC and DA) /365 days X 15 days) for each year.
You will get accrued interest for this gratuity and it will be credited to your account .

Under the Special Economic Zones Act,2005, various State Governments have provided for the resolution of Industrial Disputes under the Industrial Disputes Act,1947 pertaining to SEZ as the responsibility of the Development Commissioners. As far as I understand, the modus operandi of disposal of statutory claims like claim for gratuity under the Payment of Gratuity Act,1972 remains the same as before. In other wards, with specific reference to the questioner's status as an employee of a Company registered and located in an SEZ but lastly worked in a place outside the location of the SEZ, jurisdiction for filing a claim under the Payment of Gratuity Act,1972 is determined by the place of his work only.
Therefore, the poster has to file a claim for gratuity before the area Controlling Authority under the Act at Chennai only.

Dear Sir, Thank you very much for the reply. Further to above query I have sent Form I and some acknowledgement hapeniny from employers side. But as per the calculation they are showing they are deducting TDS on the amount. The actual gratuity value is lower than calculated as well as ₹20L ceiling. But still they are adamant to deduct TDS and they are trying to negotiate with me for not paying interest for last 6 months. So do I have an option to file Form N before labour commissioner to get my full gratuity amount. I know that. I can get refund of TDS by filing my return but for getting the interest should I file Form N. Also my EPF used to get deposited at Kadapa range. So will the gratuity claim also thru Form N also to be done at AP i.e Kalahasti. Kindly advice. Thank you
Dear friend,
It is quite astounding to note that the Accounts Department of a Company in a SEZ is so ignorant about a common provision of Income Tax Law of the country. Gratuity, being a statutory terminal benefit payable by every employer to whose establishment the PG Act,1972 is applicable, is already tax-exempt up to the ceiling of Rs.10 lakh u/s 10(10) of the Income Tax Act. After the raising of the ceiling by the Central Government, the Central Board for Direct Taxes (CBDT) has clarified vide its notification no.S.O 1213(E) dated 08-03-2019 that the exemption limit of Rs.20 lakh would be applicable to employees in the event of retirement or death or resignation or disablement on or after 29-03-2019. It is not ignorance but impudence.
I reiterate that the place where you worked last determines the jurisdiction for legal employment claims and as such you should file your claim before the ACL (Gratuity), O/O DCL I or II, Chennai [ now redesignated as D.CL and J.C.L respectively - kindly check with the Labor Commissioner's Office at Teynampet, Chennai for correct information ]. Payment of interest on delayed disbursement of gratuity is a must whether the employee insists it or not.

Dear Sir,
Thank you very much for the advice. I received my full gratuity payment. But they have added the Gratuity into my salary and has deducted the TDS amount in my pending notice period salary. I have resigned from this company in Sept 12th and served two months notice period. They gave me salary for one month the other month they have held sighting various reasons.1) Do I have an option of getting this salary from them moving thru IT department? If yes what might be the procedure. Also they have not paid me the interest on my gratuity which was held by them for 7months. As my salary part is stuck with them I don't want to file Form N right now as that will rub them on the wrong side and they may not release my pending salary. Once they release pending salary Im planning to file Form N. 2) So kindly advice whether there is any timelines for filing Form N from the date of receiving of full gratuity amount for getting the interest part. Also the TDS they are deducting from my salary which got accrued in Nov 19 is not yet deposited with IT department. 3) Kindly advice whether they will deduct TDS just before releasing the salary or it would have been already deducted ( as my 26AS doesn't reflect this TDS amount as on yesterday 21st May 19). 4) Will it get reflected in my Form 16 which they release usually by 20th June. 5) If they are deducting TDS then as per law whether they have to mandatorily release my salary as I'm paying TDS on an amount which is not realised if they are not releasing my salary.
Please help with these queries as I'm one of the most confused soul in this planet now.
Thank you.

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