- Factories Act, 1948
This is applicable to enterprises where the number of employees is:
- Ten or more and where power is used; or
- Twenty or more and power is not used.
The enterprises covered under the Act are required to keep certain records:
- Muster Roll
- Workers Register
- Overtime Register
- Advance Register
- Register for Fine
- Register for Deductions
- Register of Wages
- Register of Accidents and Dangerous Occurrences
- Bond Inspection Book
- Register of Cleaning and White Washing
- Record of Examination of Parts of Machinery
There is another Act known as Shops & Establishment Act which is applicable to shops and business undertakings employing 5 or more persons.
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Employees Provident Fund & Miscellaneous Provisions Act, 1952
The Act applies to every factory or establishment employing 20 or more employees. It, however, exempts a factory or establishment for an initial period of 3 years from commencement of business if the number of employees is more than 50 and for an initial period of 5 years if the number of employees is less than 50. The minimum contribution payable by the employer is 12% of the basic salary contribution and Dearness Allowance. The employee also makes an equal contribution. The Act, however, does not specify a maximum contribution.
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Employees’ State Insurance Act
It provides benefits to employees in case of sickness, maternity and employment injury and for certain other matters in relation thereto. The Act also provides for payment of contributions by employers and employees at the rates specified in the First Schedule of the Act. The existing rates of employee’s contribution vary according to wages and the employer’s contribution is exactly double the employee’s contribution. It shall apply to factories employing 20 or more people.
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Payment of Wages Act, 1936
This Act is applicable to factories and establishments, which come under the Factories Act. The act is restricted in its application to the class of workers whose wages range upto Rs.1,600/- per month.
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Minimum Wages Act, 1948
The employer has to pay minimum wages to employees in certain scheduled industries. At present the minimum wages act is applicable in 44 scheduled industries.
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The Indian Partnership Act, 1932
It provides for rules relating to foundation of legal partnership. It states the rights and duties of the partners amongst themselves and outside and lays down rules regarding the dissolution of partnership.
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Central Excise (CE)
The Central Government is empowered to levy excise on all articles manufactured in India except alcohol, alcoholic preparations and narcotics. The liability to duty starts the moment a new commodity is manufactured. There are, however, certain exemptions granted to SSI units. However, there is no CE on fruit and vegetable products.
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Sales Tax
Sales tax is tax levied by state and centre. Tax charged by state is called LST or Local Sales Tax and tax charged by Centre is known as CST or Central Sales Tax. The latter is charged when goods move out of a state.
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The Income Tax Act, 1911
The Act governs the levy of income tax in India. It defines various terms and expressions and states the liability of a person to pay income tax. The rates and pattern of taxation, however, are changed from time to time.
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Pollution Control Act
The State Air and Water Pollution Control Board is the body responsible for implementing this Act. The act is applicable to all kinds of industry.
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