Page 237 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes Provided that the available surplus in respect of the accounting year commencing on any day in
the year 1968 and in respect of every subsequent accounting year shall be the aggregate of—
(a) the gross profits for that accounting year after deducting therefrom the sums referred to in
section 6; and
(b) an amount equal to the difference between—
(i) the direct tax, calculated in accordance with the provisions of section 7, in respect of an
amount equal to the gross profits of the employer for the immediately preceding accounting
year; and

(ii) the direct tax, calculated in accordance with the provisions of section 7, in respect of an
amount equal to the gross profits of the employer for such preceding accounting year after
deducting therefrom the amount of bonus which the employer has paid or is liable to pay to his
employees in accordance with the provisions of this Act for that year.

(4) Direct Tax

“Direct Tax” means-
(a) any tax chargeable under-

(i) the Income-tax Act;
(ii) the Super Profits Tax Act, 1963 (14 of 1963);
(iii) the Companies (Profits) Surtax Act, 1964 (7 of 1964);
(iv) the agricultural income-tax law; and

(b) any other tax which, having regard to its nature or incidence, may be declared by the Central
Government, by notification in the Official Gazette, to be a direct tax for the purposes of this Act.

(5) Employee

“Employee” means any person (other than an apprentice) employed on a salary or wage not
exceeding 10,000/- rupees per month in any industry to do any skilled or unskilled manual,
supervisory, managerial, administrative, technical or clerical work for hire or reward, whether
the terms of employment be express or implied; (2007 amendment).
Rights of employees are as follows:
 Right to claim bonus payable under the Act and to make an application to the Government,
for the recovery of bonus due and unpaid, within one year of its becoming due.
 Right to refer any dispute to the Labour Court/Tribunal Employees, to whom the Payment
of Bonus Act does not apply, cannot raise a dispute regarding bonus under the Industrial
Disputes Act.
 Right to seek clarification and obtain information, on any item in the accounts of the
establishment.
(6) Establishment in Public Sector

Establishment in public sector means an establishment owned, controlled or managed by-
(a) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);

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