Page 320 - DMGT516_LABOUR_LEGISLATIONS

Unit 13: Wage Legislation

Definitions Notes

In this Act, unless the context otherwise requires:
(I) “accounting year” means
(i) in relation to a corporation, the year ending on the day on which the books and
accounts of the corporation are to be closed and balanced;
(ii) in relation to a company, the period in respect of which any profit and loss account
of the company laid before it in annual general meeting is made up, whether that
period is a year or not;
(iii) in any other case,
(a) the year commencing on the 1st day of April; or

(b) if the accounts of an establishment maintained by the employer thereof are
closed and balanced on any day other than the 31st day of March, then, at the
option of the employer, the year ending on the day on which its accounts are
so closed and balanced.
Provided that an option once exercised by the employer under paragraph (b)
of this sub-clause shall not again be exercised, except with the previous
permission in writing of the prescribed authority and upon such conditions as
that authority may think fit.
(4) “allocable surplus” means-
(a) in relation to an employer, being a company (other than a banking company) which
has not made the arrangements prescribed under the Income Tax Act for the
declaration and payment within India of the dividends payable out of its profits in
accordance with the provisions of section 194 of that Act, sixty-seven per cent of the
available surplus in an accounting year;

(b) in any other case, sixty per cent of such available surplus;
(6) “available surplus” means the available surplus computed under section 5;
(12) “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;
(13) “employee” means any person (other than an apprentice) employed on a salary or wage not
exceeding three thousand and five hundred rupees per mensem 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;

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