LABOUR NEWS
SALIENT FEATURES OF G.S.T
1. There are 4 types of Goods and Service Tax. They are Central Goods and Service Tax (CGST), State Goods and Service Tax (SGST), Union Territory Goods and Service Tax (UTGST) and Integrated Goods and Service Tax (IGST).
2. IGST will be levied and collected by the Government of India on Inter State supply of goods and services and such tax will be apportioned between Union and States in the manner as may be approved by Parliament by law.
3. Different indirect taxes of Central Excise duty, Central Sales Tax, Service Tax , Additional excise duties, excise duties levied under the medical and toiletries preparation Act, Additional Customs duty – countervailing duty, Special Additional Duty of Customs, surcharges and cesses were merged with CGST.
4. A state-wise single registration for a tax payer for filing returns, paying taxes, and to fulfill other compliance requirements. Most of the compliance requirements would be filed on -line, thus leaving very little room for a physical interference between the tax payer and the tax official.
5. A tax payer has to file one single return state-wise to report all his supplies, whether made within or outside the State or exported out of the Country and pay the applicable taxes on them.
6. A business entity with an annual turnover of up to Rs.20 lakh would not be required to take registration in the GST. They can voluntarily choose to Register to be a part of the Input Tax Credit (ITC) chain.
7. The annual turn overthreshold in the Special category States (Arunachal Pradesh, Sikkim, Assam and other States of North East ) for not taking Registration is Rs.10 lakh.
8. In the services sector, the existing mechanism of Input Service Distributor (ISD) under the Service Tax law has been retained to allow the flow of ITC in respect of Input Services within a legal entity.
9. To prevent lock-in of the capital of exporters, a provision has been made to refund , within 7 days of filing the application for the refund by the exporter, 90% of the claimed amount on a provisional basis.
10. To ensure a single administrative interface for taxpayers, a provision has been made to authorize Officers of the tax administrations of the Centre and the States to exercise the powers conferred under all Acts.
11. A business entity with a turn-over up to Rs.50 lakhs can avail the benefit of a Composition Scheme under which it has to pay a much lower rate of Tax. It has to fulfill minimum compliance requirements. The composition Scheme is available for all traders, select manufacturing Sectors and for restaurants in the service sector.
12. An agriculturist, to the extent of supply of produce out of cultivation of land, would not be liable to take registration in the GST regime.
13. To provide certainty in tax matters, a provision has been made for an Advance Ruling Authority.
14. Exhaustive provisions for Appellate Mechanism have been provided.
15. An anti-profiteering provision has been incorporated to ensure that the reduction of tax incidence is passed on to the customers.
16. To mitigate any financial hardship being suffered by a taxpayer, Commissioner has been empowered to allow payment of Taxes in instalments.
General:
1. The Labour Ministry has rationalized and simplified procedures for maintenance of registers that will enable establishments to have combined registers, either in electronic or in physical form, under various labour legislations. The number of registers have been significantly reduced to five from the earlier requirement of Fifty Six, thus leading to a sharp reduction in cost and compliance burden on them. Also, the new registers have 144 data fields as against 933 field under the earlier set of registers.
2. NITI Aayog urges for substantive reforms in Labour Laws to take the Country out of the current low-productivity and low- wage jobs situation.
3. The Income-Tax Appellate Tribunal (ITAT) which adjudicates Income –Tax disputes, has hold that an amount deducted by an employer for not serving out a Notice period cannot be brought to Tax.
4. The Government of India launched a new scheme called " One IP – Two dispensaries" for the benefit of migrant workers in New Delhi, on the occasion of International Labour Day ceremony. Now with the launch of the above scheme, Insured Persons can choose two dispensaries, one for self and other for family through employer.
5. Prime Minister has directed that all proposals sent to the cabinet must state the number of jobs they can generate. Further the Prime Minister emphasized that manufacturing of solar equipment should be given priority to drive employment generation.
6. E.P.F Organisation to make all payments to members electronically.
IMPORTANT DECISIONS:
1. EMPLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952:
(a) Deposit of E.P.F Contribution in respect of payment made in settlement of dispute would not attract damages and Interest. (EPFAT)
(b) Payment to workman during the pendency of dispute in the Higher Court is subsistence allowance and not wages attracting applicability of the Act. (EPFAT)
(c) Without identification of beneficiaries, an order passed assessing E.P.F dues is not sustainable. (EPFAT)
(d) An order passed only on the basis of the report of the Enforcement Officer - not sustainable. (EPFAT)
(e) Assessment of E.P.F dues only on the basis of Balance Sheet is not sustainable.. (EPFAT)
(f) Demand of E.P.F dues in respect of Trainee Nurses is illegal. (EPFAT)
(g) Issue of bifurcation of wages – completely out of purview of EPF authorities. EPF Authority is not empowered to direct the employer to deposit EPF dues on minimum wages. (EPFAT)
(h) Commissioner/ assessing authority under Section 7A of the EPF & MP Act,1952 is having same power as a Court under Civil Procedure Code. (EPFAT)
(i) Order passed by the E.P.F authority only on the basis of the report of the Enforcement Officer is not sustainable.(EPFAT)
(j) Employees ' Pension Scheme,1995 being a beneficial Scheme, ought not to be allowed to be defeated by reference to cut-off dates. (Madhya Pradesh High Court).
(k) Clause 32 A of the Scheme is not a charging provision in itself, it does not mandate the levy of Damages itself, it is only a guideline for quantification to avoid varied levy od Damages by different authorities (Karnataka High Court)
(l) Part-time Lecturers are employees under Section 2(f) of the E.P.F & M.P Act,1952 (Hyderabad High Court)
(m) E.P.F Appellate Tribunal is not a Court but discharges function akin to Courts (Punjab & Haryana High Court).
(n) A notice sent by Registered Post with due acknowledgement if not received back, it will be presumed to have been served upon the addressee. (Orissa High Court).
2. FACTORIES ACT,1948.
As per provisions of Factories Act,1948 for coverage of an establishment under the Act, it must be specified in first Schedule of the Act. (Madras High Court)
3. WORK MEN COMPENSATION ACT,1923.
(a) Documentary age proof will be having weightage over the oral evidence of age proof, for the purpose of calculation of Compensation.
(b) When the injured claimant did not consult an orthopedic Doctor or sought expert medical advice even on advice by the General Medical Practitioner, a presumption under Section 114, Explanation (g) of Evidence Act,1872 is justified that consultation would not have been favourable to injured or for the purpose of making out claim before Commissioner. (Gauhati High Court).
(c) Compensation payable to the claimant becomes due on the date of accident. (Madras High Court).
4. INDUSTRIAL DISPUTES ACT,1947.
(a) When an employee is not fit for regular post, keeping in view of his duration of service, a lump sum compensation is appropriate in lieu of reinstatement. (Delhi High Court)
(b) Granting back wages with reinstatement in each and every case of illegal termination is not an automatic process.(Madhya Pradesh High Court).
(c) Embezzlement of petty amount can't be ignored since it is not the amount embezzled but the mens rea to misappropriate the Public Money (Patna High Court)
(d) Industrial Tribunal cannot be said to have power akin to the High Court or Supreme Court thereby reducing punishment. (Rajasthan High Court)
(e) No limitation is prescribed for raising an Industrial Dispute under the I.D Act, 1947 (Madhya Pradesh High Court)
(f) Termination of service of a workman engaged in a scheme may not amount to 'retrenchment' within the meaning of sub-clause (bb) of Section 2(oo) of the ID Act,1947 (Uttaranchal High Court).
(g) Fraud, misappropriation, dishonesty are grave and serious misconducts attracting major penalty.(Hyderabad High Court)
5. EMPLOYEES' STATE INSURANCE ACT,1948:
(a) A small restaurant preserving ice cream, cold drinks and food stuff with the aid of deep freezer is not covered under provisions of Factories Act, 1948 or under Section 2(12) of the ESI Act,1948. (Gujarat High Court)
(b) Unaided Educational institutions are covered by the definition of 'establishment' for coverage under ESI Act. (Madhya Pradesh High Court)
(c) Clubbing of establishments for coverage under ESI Act,1948 is not justified in the absence of functional intergrity between the different units. (Gujarat High Court).
6. MINIMUM WAGES ACT, 1948
(a) Minimum wages are not merely for the bare subsistence of life but also for preservation of efficiency of worker, some measure of education, medical, amenities for himself and his family. (Bombay High Court)
(b) Where the employer is paying a total sum which is higher than minimum rates of wages fixed under the Act including the cost of living index (VDA), claim demanding VDA or such other benefit separately, is not sustainable (Bombay High Court)
7. PAYMENT OF GRATUITY ACT,1972:
For forfeiture of gratuity, the termination of service of the employees on account of proved offence involving moral turpitude as per Section 4(6)(a) of the Payment of Gratuity Act,1972 is a necessary requirement. If the element of financial loss is not clear, the forfeiture of gratuity is liable to be set aside. (Bombay High Court)
8. PAYMENT OF BONUS ACT:
An employer is obliged to pay Bonus to its employees within eight months from the date of close of every accounting year. (Patna High Court)
9. GENERAL:
(a) Past record of a delinquent employee is a factor to be considered at the time of fixing the quantum of punishment by the disciplinary authority. (Bombay High Court)
Punishment of dismissal from service on account of unauthorized repeated absenteeism, violating the Standing Orders , creating difficulties for the Management in functional administration and discipline is justified. (Kerala High Court).
(b) Registered Union of contract workers but not recognized by the Management would not be having any relationship or employer-employee . (Madras High Court)
(c) If the appropriate Government has issued notification prohibiting employment of contract labour and the principal employer intends to employ regular workmen, he shall give preference to the erstwhile contract labour, if otherwise found suitable and if necessary, by relaxing the conditions. (Orissa High Court)