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Anonymous
4

As we are the contractor we had engaged in contract Labour for the work in a rural area, in this case, we had paid a security deposit with the license fee and obtained a CLRA license and ISMW license respectively.

On this note we are asked to pay panchayat tax from the local president of panchayat for engaging Contract Labour in their area, Do we really have to pay any panchayat tax?

If so any provision or statutory liabilities are said in Tamilnadu Panchayat act means please share the details and advise on this seniors.

Thanks in advance.

From India, New Delhi
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Umakanthan53
Labour Law & Hr Consultant
Drsivaglobalhr
Doctor Siva Global Hr
Pvenu1953@gmail.com
Retired Government Servant/advocate
John Sebastian Peter
General Consultant- Hr

umakanthan53
6016

Dear John,

So far as l know, the Contract Labor ( Regulation & Abolition ) Act, 1970 is the only Act dealing with the issuance of licence for engaging contract labor in any activity analogous to industrial activity and collection thereof of licence fees fixed under the respective Rules by the appropriate Government. I have not heard of local Panchayat collecting any fee or charges in this regard.

Better ask the President to quote the relevant authority.

From India, Salem
drsivaglobalhr
309

Dear Colleague,

Contract Labour R&A Act is a special enactment under which License is issued to the Contactor on payment of certain fee. The purpose of the Act is to regulate the working condition, safety, other facilities of the contract workers which is inspected by the Licensing authority from time to time and so on.

In case of Professional Tax it is a Tax to the Local Body which is to be paid on behalf of the Employees, who do " Profession" in a particular Village Panchayat under the provisions of the Profession Tax Act which is prevailing in few states ( not all states) It is a tax on all kinds of professions, trades, and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any. There is a tax to be paid by the Employer and also by Employees to the local body. Hence this tax is payable by the Contractor as well as by the Workers to the Local Body.

Suggest you please go through the below article on Profession Tax which will be useful for your reference :
https://cleartax.in/s/professional-tax

All the Best, God bless,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu

From India, Chennai
pvenu1953@gmail.com
125

Is there any demand for payment of the said tax in writing? If so, you may seek the relevant information, esp. as to the authority of law for exacting the tax, under the provisions of the RTI Act. No tax is leviable save with the authority of law. And the Panchayat is not a legislative body.
From India, Kochi
John Sebastian Peter
4

Thank you so much dear sir's, for your prompt response.

In continuation, We had insisted to pay commercial building tax for our workmen camp. As part of welfare as per the compliance we had hired a land from an tenant and we had constructed temporary fabricated shed for our workmen. Here we are paying monthly rent to the land owners as per our mutual agreements in this regard from panchayat president asking for the permission for constructing and he is insisting to pay commercial building tax for our workmen shed.

Do we really have to pay as per any provision and clause ?

Please advise my dear seniors.

Thanks & Regards,
John Peter.S

From India, New Delhi
drsivaglobalhr
309

Dear Colleague,
Any building construction or shed construction in a land is governed by the Panchayat Acts. Normally any construction done needs approval from the Local Body as per the Panchayat Acts. However the Land owner needs to pay such tax and also the approval for such shed to be obtained by the land owner. You are only a tenant in my view.

My second thought whether " renting out" is amounts to "commercial building" also needs to be examined in this subject. Hence my humble view is that this needs a clear opinion from the some good Civil Legal Practitioner of your City or location and proceed after his views. Or you may consult any retired Commissioner of Panchayat or Corporation who will have more clarity on the provisions applicable for your location and local laws of Panchayat, Panchayat Raj and District GOs and so on.

From India, Chennai
John Sebastian Peter
4

Yes sir, thanks for knowledge sharing. This helps me to find in a better way and percept. Thanks and regards, John Peter.S
From India, New Delhi
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