Dear All,
I am new to this and have no knowledge about the refund policy. I need help to get a refund. One of our clients started their company, applied for a labor license, and deposited security. However, this company never started operations and now wants to apply for a refund of the security deposit for the Labor License.
Please guide.
Thank you.
From India, Mohali
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I am new to this and have no knowledge about the refund policy. I need help to get a refund. One of our clients started their company, applied for a labor license, and deposited security. However, this company never started operations and now wants to apply for a refund of the security deposit for the Labor License.
Please guide.
Thank you.
From India, Mohali
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Hi Rajni,
Please answer these questions: Is the license under the Shops & Commercial Estt. Act of the Union Territory or Punjab or Haryana? Did you receive the authentic receipt against this caution deposit and preserve it in your possession? How was the deposit money? How about the license, did you receive it? Did you personally deposit this money - by cash or DD?
If it's for Shops & Commercial Estt - Many states don't insist on any deposit money but only fees at prescribed rates in the act. If this might apply to this, most likely, if the license is applied through some agents, the agent would have collected money towards fees + his charges + other expenses in the guise of a deposit. Please check this and ensure that it's only a deposit to confirm you are not duped by some thugs. If really money was deposited in the office and an authentic money receipt is obtained and in your possession, you should follow the following steps:
- If this is a Co., you should comply with all the procedures as stipulated under the Companies Act and surrender the Co. Regn. to the Registrar of Cos and obtain a confirmation letter;
- Close all your bank accounts opened in the name of the Co. and obtain the Closure certificate from the bank concerned;
- Similarly, register under the GST Act, surrender & obtain a letter of cancellation of registration.
- File the license cancellation in the prescribed form (formats can be suggested once you reveal the state in which you have registered this firm) to the Labour dept. and ask for a refund by a bank account credit.
Otherwise, consult a practicing Chartered Accountant who will know what is required in this regard.
From India, Bangalore
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1158Please answer these questions: Is the license under the Shops & Commercial Estt. Act of the Union Territory or Punjab or Haryana? Did you receive the authentic receipt against this caution deposit and preserve it in your possession? How was the deposit money? How about the license, did you receive it? Did you personally deposit this money - by cash or DD?
If it's for Shops & Commercial Estt - Many states don't insist on any deposit money but only fees at prescribed rates in the act. If this might apply to this, most likely, if the license is applied through some agents, the agent would have collected money towards fees + his charges + other expenses in the guise of a deposit. Please check this and ensure that it's only a deposit to confirm you are not duped by some thugs. If really money was deposited in the office and an authentic money receipt is obtained and in your possession, you should follow the following steps:
- If this is a Co., you should comply with all the procedures as stipulated under the Companies Act and surrender the Co. Regn. to the Registrar of Cos and obtain a confirmation letter;
- Close all your bank accounts opened in the name of the Co. and obtain the Closure certificate from the bank concerned;
- Similarly, register under the GST Act, surrender & obtain a letter of cancellation of registration.
- File the license cancellation in the prescribed form (formats can be suggested once you reveal the state in which you have registered this firm) to the Labour dept. and ask for a refund by a bank account credit.
Otherwise, consult a practicing Chartered Accountant who will know what is required in this regard.
From India, Bangalore
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Security Deposit.pdf