Page 243 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes

Task State the deductions which are allowed under the Third Schedule of the Payment of
Bonus Act, 1965 for the purpose of computation of ‘Available surplus’ in the case of a
Banking Company, which is not a Foreign Company.

Self Assessment

State whether the following statements are true or false:
10. There few differences in computation of gross profits in case of banking company and
other than banking companies.
11. Set off is the excess allocable surplus remain after paying the maximum bonus of 20% on
the wage or salary of the employee.

12. When there are no profits (available surplus or allocable surplus) or the amount falls short
or deficiency for payment of minimum bonus to employees 8.33%, such deficiency amount
should be adjusted to the current accounting year from the Set-On amount which was
carried forward in case of excess allocable surplus in the previous year.

12.5 Powers of Inspectors Offences and Penalties [Sec. 27]

The appropriate government may, by notification in the Official Gazette appoint such persons
as it thinks fit to be Inspectors for the purposes of this Act and may define the limits within
which they shall exercise jurisdiction.

12.5.1 Powers of Inspectors

The powers of inspectors are as follows:
1. An Inspector appointed under sub-section (1) may, for the purpose of ascertaining whether
any of the provisions of this Act has been complied with-

 require an employer to furnish such information as he may consider necessary;
 at any reasonable time and with such assistance, if any, as he thinks fit, enter any
establishment or any premises connected therewith and require anyone found in charge
thereof to produce before him for examination any accounts, books, registers and other
documents relating to the employment of persons or the payment of salary or wages or
bonus in the establishment;
 examine with respect to any matter relevant to any of the purposes aforesaid, the employer,
his agent or servant or any other person found in charge of the establishment or any
premises connected therewith or any person whom the Inspector has reasonable cause to
believe to be or to have been an employee in the establishment;
 make copies of, or take extracts from, any book, register or other document maintained in
relation to the establishment;

 exercise such other power as may be prescribed.
2. Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal
Code (45 of 1860).

3. Any person required to produce any accounts, books, register or other documents or to give
information by an Inspector under sub-section (1) shall be legally bound to do so.

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