Bonus act - applicability - new establishment
prashant1314
(Querist) 06 September 2011
This query is : Resolved
Dear Sir,
As we are new startup Engineering company at Pune what is the Bonus Applicability to our company if we make profit in first 05 years.?
Raj Kumar Makkad
(Expert) 06 September 2011
The object of the Act is to maintain peace and harmony between labour and capital by allowing the employees to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management and labour.
To which establishments is the Act applicable?: The Act is applicable to:
(a) every factory
(b) every other establishment employing 20 or more persons.
The Government can, however, apply the Act to any establishment employing less that 20 but not less than 10 persons. An establishment to which the Act applies shall continue to be governed by the Act irrespective of any fall in the number of person employed therein. {Section 1}.
prashant1314
(Querist) 06 September 2011
Dear Makkad Saab,
My query is about profit in first five years.
Will you please help me?
prabhakar singh
(Expert) 06 September 2011
your question is confusing and does not convey what you desire to know??consult your ca to frame the question first then look for answer.
prashant1314
(Querist) 06 September 2011
Dear Sirs,
With reference to section 16 infant company gets first 04 years provilege to disburse Statutory Bonus if during this period company makes a profir then Company has to pay bonus
So how much bonus has to be paid if company makes profit within any year of first 04 years?
