TalEzine July'17

Compliance Calendar for July 17

Monthly Returns :

Compliance Particulars Due Date
ESI Remittance contribution for June paid in July 2017 15th July 2017
PF Remittance contribution for June paid in July 2017 15th July 2017

Professional Tax :

State Due Date
Telangana 10th July 2017
Karnataka 20th July 2017
West Bengal/ Gujarat 15th July 2017
Maharashtra 30th July 2017

Half-Yearly Returns :

Compliance Particulars Due Date
Shops & Establishment As prescribed in Sate Rules 31st July 2017
Factory Act As prescribed in Sate Rules 31st July 2017
CLRA Applicable states (Form XXIV) 31st July 2017

Labour welfare fund :

State Due Date
Goa, Gujarat, Madhya Pradesh 31st July 2017
Maharashtra, Delhi 15th July 2017
Kerala 5th July 2017

Provident Fund Office’s Clarification on International Worker as applicable for Indian employees

On 23 June 2017, the Employees’ Provident Fund Organization (EPFO) has issued a revised circular (replacing the circular issued on 8 June 2017) clarifying its position on the definition of International Worker as applicable for Indian employees.

The circular states that Indian employees who return to work in India after having worked in a foreign country with which India has entered into a social security agreement will not be considered as International Workers for Provident Fund purposes.

As per an earlier interpretation, Indian employees going to work in a foreign country with which India has entered into a social security agreement qualified as International Workers for life if they:

  • Did not contribute to the Indian Provident Fund scheme while they were on assignment to the foreign country

  • Did not obtain a certificate of coverage from the EPFO

  • Contributed to the social security scheme of the said foreign country and were eligible for benefits from such scheme

As per the latest circular, such Indian employees, earlier termed as International Worker for life, will be able to regain the domestic worker status on return to India, thus, doing away with the position of “once an International Worker, always an International Worker” for Indian employees.

Indian employees going to work in a foreign country with which India has not entered into a social security agreement have always been considered domestic workers.

The latest circular might bring relief to Indian outbound employees sent on assignment to a foreign country with which India has a social security agreement without continuing coverage under the Indian Provident Fund scheme. Such Indian outbound employees will now not be considered as International Workers on return to work in India

Child Labour Rules-Amendment

Certain rules to amendment with respect to the Child Labour (Prohibition and Regulation) Rules, 1988 were published as required by sub-section (1) of Section 18 of the Child and Adolescent Labour (Prohibition and Regulation) Act, 1986 (61 of 1986)

  • Awareness on prohibition of employment of child and adolescents in contravention to Act

  • Child to help his family without affecting education

  • Awareness on prohibition of employment of child and adolescents in contravention to Act

  • Child to help his family without affecting education

  • Child to work as an artist - No adolescent shall be required or permitted to work in an establishment in excess of such number of hours of work as is permissible under the law for the time being in force regulating the hours of work of the adolescent in such establishment

  • Payment of amount to child or adolescent from and out of Child and Adolescent Labour Rehabilitation Fund - The amount credited, deposited or invested in the child name & the interest accrued on it, shall be paid to the child or adolescent.

  • Certificate of age - employer of such adolescent to produce to the Inspector a certificate of age from the appropriate medical authority.

  • Hours of work. Subject to the provisions of section 7, no adolescent shall be required or permitted to work in an establishment in excess of such number of hours of work as is permissible under the law for the time being in force regulating the hours of work of the adolescent in such establishment

Rules for Implementing Secondary Transfer Pricing Adjustment

The Finance Act, 2017 introduced a secondary transfer pricing (TP) adjustment provision in the Indian Tax Laws (ITL) to ensure that profit allocation between the Associated Enterprises (AEs) is consistent with the primary TP adjustment.

  • If the primary adjustment is not repatriated to India within a prescribed time, the amount not repatriated would be deemed to be an advance made by the taxpayer to such AE and interest would be charged on the advance in the manner prescribed.

The Central Board of Direct Taxes (CBDT), the apex Indian Tax Administration, vide notification dated 15, June, 2017 has issued rules to support the implementation of the provision by prescribing the time limit for repatriation and the method of computing the interest. While generally providing a 90-day time limit for repatriation, the rules require charging an annual interest beyond the prescribed period until the advance is settled. The notification also clarifies that the provision is applicable from the Financial Year (FY) 2016-17 onwards.

Workers Welfare Act – West Bengal for Unorganised sector

West Bengal Workers Welfare Act has been amended with definitions of the unorganized sectors as following categories of workers:

Part A

  • Automobile Repairing Garages (having less than 20 workers).

  • Bakery (having less than 20 workers)

  • Beedi Making

  • Boatman Service

  • Book Binding

  • Cashew Processing

  • Lac Industry (having less than 20 workers)

  • Leather & Leather goods

  • Oil Mill

  • Rubber & Rubber Products

and other similar type of working categories as per GO

Part B [Self-employed person]

  • Amins (Land Surveyors)

  • Ayah / Attendant engaged in Hospitals/Nursing Homes by the patients

  • Barbers / Beauticians

  • Carpenter

  • Cobbler / Shoe Maker

  • Cycle Rickshaw & Van Puller / Paddler

  • Domestic Servants

  • Fishermen

  • Gold Smithery & Silver Smithery

  • Head-load Workers and Workers engaged in Loading & Unloading

  • Idol

Employer – Employee relationship on depositing ESI/Provident Fund Contributions:

When a contractor do not have contract employee’s ESI code number, principal employer becomes liable for Provident Fund and ESI contributions. Depositing such contributions on the request of contract workers doesn’t give rights to contract workers to claim themselves as Principal workers. Under the requirement of factories act, Principal employer has been depositing ESI/PF Contributions, providing medical facilities, Shoes and Uniforms. But the directions given under section 33C(2) of Industrial Dispute Act these will not be factors for understanding that the relationship between principal employer and workers (as engaged through the contractors) existed.

Dispensing of enquiry for termination:

In case of a scenario where an employee behaving violently with seniors as well as colleagues and Management is scared of him as an Enquiry officer and Management representative have been threatened with physical assault, Enquiry could be dispensed with and services of such an employee be terminated with an exhaustive order stating the sequence of events. After termination if that employee raises an industrial dispute challenging his termination, an employer can make a written request to Labour court/Tribunal stating the events that happened.