gratuity-act-is-applicable

gratuity-act-is-applicable-tos-covered-by-factories-act Notwithstanding non-applicability of Payment of Gratuity Act, 1972 to units having less than 10 workmen, units covered by the Factories Act, 1948, were to apply the gratuity law to their workers, the Madurai Bench of the Madras High Court has held. Agreeing with the decision of the Joint Commissioner of Labour, Madurai (Appellate Authority under the Gratuity Act), that Section 1(3)(a) of the Gratuity Act was applicable even to establishments having less than 10 workers, under notification dated September 9, 1967 of the Department of Industries, Labour and Housing, Tamil Nadu, extending the Factories Act to all tailoring units in the State, Mr Justice K. Chandru ruled that the contention of writ petitioner (Star Tailoring, Tirunelveli) that Gratuity law would not apply to his units had to be rejected. It was an admitted fact, the Judge said, that the State Government had issued notification under the Section 85(1) of the Factories Act covering tailoring units. Notwithstanding the fact that the petitioner had less than 10 workers, the Payment of Gratuity Act would apply to them in all respects. According to the petitioner, inasmuch as 2nd respondent (Asst Commissioner of Labour, Tirunelveli – controlling authority under the PG Act) had held that the PG Act did not apply as it was not covered by the Section 1(3)(b) of Act, order of Appellate Authority was wrong. The Judge said that it was only for coverage under the Section 1(3)(b) of the PG Act, minimum number of workmen were required. In respect of Section 1(3)(a), the Act is applied to all establishments including a factory. Tailoring establishment was also a factory as per the State Government's notification. In view of the above, the writ petition failed, and the same was dismissed. SOURCE: http://www.taxguru.in/government-policy/gratuity-act-is-applicable-to-establishments-covered-by-factories-act%e2%80%99.html#ixzz0ZMOdcFUk

PROFESSIONAL TAX RATE IN SOME STATES

Tax Slabs in India

The set of professional tax slabs in India are different for all the 28 states in India and some of the states have formulated different professional tax slabs for men, women, and the senior citizens of the respective states.

Maharashtra's Tax Slabs:

The professional tax slabs in India are applicable to those citizens of India who are either involved in any profession or trade. The state government of each state is empowered with the responsibility of structuring as well as formulating the respective professional tax criteria and they are also required to collect funds through professional tax. The professional taxes are charged on the incomes of individuals, profits of business or gains in vocations. The professional tax is charged as per the List II of the Indian Constitution. The professional taxes are classified under various tax slabs in India. Maharashtra, the commercial capital of India follows the following professional tax slab:

Income Monthly Professional Tax

Less than Rs. 2500 Nil
Between Rs. 2500-3500 Rs.60
Between Rs. 3500-5000 Rs.120
Between Rs. 5000-10000 Rs.175
Beyond Rs.10000 Rs.200


Tamil Nadu's Tax Slabs:

The professional tax slab structure followed in Tamil Nadu on a half yearly basis is formulated as follows:

Income Monthly Professional Tax
Less than Rs.21000 Nil
Between Rs.21001-Rs.30000 Rs.75
Between Rs.30001-Rs.45000 Rs.188
Between Rs.45001- Rs.60000 Rs.390
Between Rs.60001- Rs.75000 Rs.585
Beyond Rs.75001 Rs.810

West Bengal's Tax Slabs:

West Bengal has created its respective professional tax slab structure to keep the residents informed about the exact deductions from their incomes. The professional tax slab in West Bengal has been categorized as per the following criteria:

Income Monthly Professional Tax
Less than 1,500 Nil
Between Rs. 1501- Rs. 2001 Rs. 18
Between Rs. 2001 - Rs. 3001 Rs. 25
Between Rs. 3001- 5001 Rs 30
Rs. 5001 Rs. 40
Between Rs. 6001 -7001 Rs.45
Rs.7001 Rs.50
Rs.8001 Rs.90
Rs.9001 Rs.110
Rs.15001 Rs.130
Rs. 25001 Rs.150
Beyond Rs.40001 Rs.200

Delhi's Tax Slabs:

The Indian capital has its own professional tax structure has been categorized under various heads like professional tax for corporate professionals, non-corporate professionals, corporate contractors, non-corporate contractor. The professional tax rate of the corporate professionals has been declared as 11.33% whereas the corporate contractors are required are levied 2.26% of their income towards their professional tax. The deductions for the non-corporate professionals have been adjusted at 10.30% of their incomes but that of the non-corporate contractors have been decided at 2.06% of their incomes. The professional tax slabs in terms of various income groups in Delhi, have been structured as follows:

Income Percentage of Professional Tax
Less than Rs.1,10,000 Nil
Between Rs.1,10,000-Rs.1,45,000 Nil
Between Rs.1,45,000-Rs.1,50,000 10 %
Between Rs.1,50,000-Rs.1,95,000 20 %
Between Rs.1,95,000-Rs.2,50,000 20 %
Beyond Rs.2,50,000 30 %


Delhi has also formulated a different professional tax slab for people with income beyond Rs. 10,00,000. Such income groups are required to pay10 % of their income as surcharge also. The professional tax structure in Delhi has been formulated to include an education cess also. The education cess is calculated by aggregating the amount of tax as well as the amount of surcharge and then 2% of the aggregate is deducted as the education cess. The professional tax structure for partnership companies includes surcharge at the rate of 10% of the profits. Partnership companies are required to pay 2% of their profits as education cess. The calculation of education cess for the companies also requires the aggregation of the income tax and the surcharge initially and then deducting 2% of the aggregate for education cess. The professional tax rate for the partnership firms has been decided at 30% of the profit and the effective rate of tax of these firms is 33.66 %.
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Services received from goods & transport agents exempted from service tax

Services received from goods & transport agents exempted from service tax

 

RETURNS CAN BE FILED ONCE A YEAR

As the exporters have to focus more on export promotion during this time of downturn, they should be freed from these cumbersome procedures for claiming refund of service tax. Therefore, following changes are proposed in the scheme, with the basic ideas of placing more trust in the exporters. The announcement to this effect was made in the General Budget 2009-10

 

a) Services received by exporters from goods transport agents and commission agents, where the liability to pay service tax is ab initio on the exporters, will be exempted from the service tax. Thus, exporters will not pay any tax in advance relating to these services. b)

 

c) For other services received by exporters, exemption of service tax can be claimed through the existing mechanism through self certification of documents where value of refund is below 0.25 per cent of the FOB value. For higher values, it can be claimed on the basis of documents certified by a Chartered Accountant. d)

 

It is an international practice to zero rate exports i.e. 'taxes' are not to be exported. To achieve this objective, a scheme of refund of service tax on certain taxable services used after the clearance of export goods from the factory was announced in 2007. However, exporters faced difficulties in obtaining such refunds.

 

Service tax returns can be filed after one year instead of being filed quarterly which will considerably reduce paper work.

 http://www.caclubindia.com/news/2009/7/returns_can_be_filed_once_a_year.asp