Hi All,
Can anyone please provide some inputs?
In case of more than one factory situated in the same premises and the different factories are engaged in the same business, having different business licenses respectively, how does the law apply? Is the law applied based on the individual workforce strength or the total strength considered??? Please clarify.
The factory does not have any valid document to classify all the factories as a single entity.
Thanks & Regards,
Saravana Rajan.
From India, Mumbai
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6Can anyone please provide some inputs?
In case of more than one factory situated in the same premises and the different factories are engaged in the same business, having different business licenses respectively, how does the law apply? Is the law applied based on the individual workforce strength or the total strength considered??? Please clarify.
The factory does not have any valid document to classify all the factories as a single entity.
Thanks & Regards,
Saravana Rajan.
From India, Mumbai
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If the different factories have different factory licenses, different power connections, different Sales Tax and/or Central Excise registration, then these factories will not be counted as one for the purpose of deciding the strength of employees. Each one can have separate muster rolls, etc.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Thank you for the reply.
In this case, the factory does not have anything different apart from factory licenses. They are using the common place to record attendance, process wages, entry, exit, common boiler, common diesel generator, etc. Moreover, the processes in all three factories are the same and interrelated.
Please provide any law citations that prove this is a single factory.
Thank you,
Saravana Rajan.
From India, Mumbai
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In this case, the factory does not have anything different apart from factory licenses. They are using the common place to record attendance, process wages, entry, exit, common boiler, common diesel generator, etc. Moreover, the processes in all three factories are the same and interrelated.
Please provide any law citations that prove this is a single factory.
Thank you,
Saravana Rajan.
From India, Mumbai
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With different factory licenses, there cannot be a single sales tax/central excise registration. If you have only one RC for ST/Central Excise, it shall be deemed as a syndicate of different factories manufacturing a single product. In your case, it is deemed that all employees sign the same register for attendance, wages, etc. In such a case, all the employees will be grouped together to determine the total number of employees.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Hi Saravanarajan,
1) Entrances/exits are considered separate entities; they should be kept distinct for separate units.
2) MDs/Directors of the companies will be checked during inspections to establish the relationship between them.
3) Having separate licenses has strengthened your position in this matter.
4) Visit Vakilno1.com for further legal help or queries.
Regards
From India, New Delhi
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1) Entrances/exits are considered separate entities; they should be kept distinct for separate units.
2) MDs/Directors of the companies will be checked during inspections to establish the relationship between them.
3) Having separate licenses has strengthened your position in this matter.
4) Visit Vakilno1.com for further legal help or queries.
Regards
From India, New Delhi
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I believe FACTORY ACTS is First Location-Based
One location (layout covered with that space) carries one license. So, no two factories will be outlined within one building layout. One location owned by one can be demarked into two distinct layouts (without overriding the primary function into each other, except probably the external/outer gates). One factory can have multiple attendance registers/entry, but two distinct factories at the same location (with individually demarked space) cannot have the same registers/records/counts. Hope this helps... Seniors may shed expert/clearer advice.
From India, Madras
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One location (layout covered with that space) carries one license. So, no two factories will be outlined within one building layout. One location owned by one can be demarked into two distinct layouts (without overriding the primary function into each other, except probably the external/outer gates). One factory can have multiple attendance registers/entry, but two distinct factories at the same location (with individually demarked space) cannot have the same registers/records/counts. Hope this helps... Seniors may shed expert/clearer advice.
From India, Madras
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