Financial Daily from THE HINDU group of publications
Tuesday, Apr 08, 2003

Port Info

Group Sites

Industry & Economy - SSI

Panel recommends simplification of book-keeping norms for small firms

Vinson Kurian


THE first report by the Law Reforms Committee set up by the State Government has proposed that a suitable legislation be enacted to spare small establishments employing not more than 50 persons from complying with the taxing administrative requirements as envisaged in the extant law regime.

The proposed Bill has been titled The Kerala Labour Laws (Simplification of Returns and Registers of Small Establishments) Bill, 2002, sources in the Law Department said.

In the background note to the drafting of the Bill, the committee has observed that rules and regulations framed under various labour laws enacted by the State Legislature provide for maintenance of registers in the prescribed form and periodical submission of returns in the prescribed forms.

Over time, the number and frequency of these returns and applications for renewal have increased, casting a burden on small businesses.

There have been persistent demands from small business and industrial establishments for the simplification and reduction in the number of forms and registers required to be maintained or submitted by small establishments. In order to provide for the exemption of employers in relation to establishments employing a small number of persons from furnishing returns and maintaining registers under certain Central laws, the Parliament has enacted Labour Laws (exemption from furnishing registers by certain establishments) Act, 1998.

With a view to facilitating the growth of small industries and business in the State and to reduce their administrative work, it is proposed that a small establishment in which not more than 50 persons are employed will be required to maintain only three muster registers. Under the new legislation, these establishments must submit only one Core Return in lieu of the existing returns prescribed under various State Labour Laws.

However, in view of the special requirements of social security legislations such as recovery of contribution from employers and employees, their accountability and reimbursement etc, no relaxation is being proposed in such matters, sources in the department said.

In the proposed Bill, `Establishment' would have the meaning assigned to it in a Scheduled Act, and includes, a "commercial or other establishment" as defined in Section 2 of the Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960). On and from the commencement of this Act, the Scheduled Acts shall have effect subject to the provisions of this Act.

`Schedule' has been taken to mean the grouping of related legislations such as The Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960), The Kerala Casual, Temporary, Badli Workers (Wages) Act, 1989 (1 of 1990), The Kerala Payment of Subsistence Allowance Act, 1973 (27 of 1973), The Kerala Industrial Establishments (National and Festival Holidays) Act, 1958 (47 of 1958), The Kerala Industrial Employees Payment of Gratuity Act, 1970 (6 of 1970) and The Kerala Head Load Workers Act, 1978 (20 of 1980).

Memorandum with respect to delegated legislation explains that Clause 8 of the proposed Bill would seek to empower the State Government to add or delete any entry in the schedule. It also empowers the Government to make rules to carry out the purpose of the Act.

Such rules may provide for the form of Core Return to be furnished, and the form of registers to be maintained by the employers. Clause 9 of the Bill seeks to empower the Government to issue orders for removing difficulties in giving effect to the provision of the Act.

The matter to be prescribed or the orders or notifications to be issued are matters of procedure and details, and are of routine and administrative in nature. Further, the rules are subject to the scrutiny by the Legislative Assembly after issue. The delegation of legislative power is, therefore, of a normal character, the memorandum states.

Article E-Mail :: Comment :: Syndication

Stories in this Section
ICFAI analyst bags award for case study

APGenco units bag awards
WMA limit at Rs 16,000 cr for 2003-04
Gold goes off `green channel'
Customs House Agents decry new system
Declaration of stocks, excise registration — Cenvat date extended for textile firms
Indo-Israel chamber plans task forces to boost ties
No masks please, we ride our luck
Fewer check-ins worry TN hotel industry
Govt mulls oil club for bidding overseas
BHEL, NTPC likely to join hands for IGCC project
Kochi corporation urged to scrap cess on KRL crude
Imposition of ST on sarees puts Delhi traders in a spot
SSI readymade units seek relief on excise
BHEL ancillaries form cluster for growth
Panel recommends simplification of book-keeping norms for small firms
Udyog Mitra okays projects worth Rs 1,807 crore
Rally to protest Netravati diversion
Rs 63.46-crore Nabard loan for AP water project
Self-regulatory plan by news channels
War, SARS take sheen off jewellery
Garment exports up 17 pc in 11 months
Drive to promote awareness on bioinformatics
Insat 3A launch tomorrow
Minister says report on EPF rate by month-end
Silent revolution under way in TN villages
Toy train and ropeway to woo tourists to Kailas Giri
Rajasthan to repackage itself

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line