DECODED : The Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014

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Relativity – Thought Leadership

 

The latest thing doing the rounds is the discussion on “The Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014” since late September 2014.

The Small and Medium Enterprises (SME Sector) which account for over 30% of industrial production had requested the government to simplify the numerous labour laws applicable…. The Labour ministry has now drafted the said bill and placed it for discussion.

The draft bill will govern the wages, conditions of work in small & medium enterprises. It aims to simplify the compliance requirements for SME’s, bring in technology and simply labour management.

Being The Compliance Experts with over 7 years in business, we have decoded the draft bill for you.

Click Here to for the Highlights of the Bill…..

Hope you enjoyed and learnt reading it. Do leave your comments below.

Team Relativity

Is IT Department’s Collection Targets Culminating in Tax Terrorism?

Tax terrorism has been a buzz word in corporate circles since it came into public attention, when quoted as said by Narendra Modi in a FCCI interactive session.

Tax Terrorism

Tax Terrorism

As per official sources, the government is said to have achieved (or exceeded) the direct tax collection target of Rs 6.36 lakh crore for the last financial year.

The attempts to reach this target was kept no secret  when  the CBDT  issued orders to keep IT offices open from  March 29 (Saturday)  to 31 (Monday).

But questions arose from various corners whether this has been done at the expense of the corporates,the biggest source of IT contribution . Hence, the latest action by the tax department to collect premium against the sale of shares has caused wide outrage.

In notices served on March 30 by the income tax office, corporates across the nation were told to justify the premium, and for those who failed, the amount was treated as income and therefore taxed.  The notice was issued after collecting data from the registrar of companies.  The tax authorities are said to be quoted saying that the department was following a new rule that came into force from 2012-13.

According to Economic Times, “The intention of this law is to curb money laundering and bogus transactions where the premium an investor pays per share cannot be explained. “  Close to 200 companies subjected to case, where the value of share premium is more than 1 crore have received notices from the tax office in connection with share premium charged by them.

What complicates the situation is that 6 year old assessments are being re-opened, while tax experts argue that the IT department are not authorized to re-open cases that happened prior to AY 2012-2013.

Considering the importance of the issue, it is advisable that firms continue to keep track of the proceedings of IT office regarding premium collection against the sale of shares.

We at Relativity will keep you updated by notifying on IT department activities through our thought leadership blog.

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