38. All employees to be insured.

Subject to the provisions of this Act, all employees in factories or

establishments to which this Act applies shall be insured in the manner provided by this Act.
39. Contributions. (1) The contribution payable under this Act in respect of an employee shall
comprise contribution payable by the employer (hereinafter referred to as the employers contribution)
and contribution payable by the employee (hereinafter referred to as the employees contribution) and
shall be paid to the Corporation.
1[(2) The contributions shall be paid at such rates as may be prescribed by the Central Government :

Provided that the rates so prescribed shall not be more than the rates which were in force immediately
before the commencement of the Employees State Insurance (Amendment) Act, 1989 (29 of 1989).]
2[(3) The wage period in relation to an employee shall be the unit in respect of which all contributions

shall be payable under this Act.]

(4) The contributions payable in respect of each 3[wage period] shall ordinarily fall due on the last day of
the 3[wage period], and where an employee is employed for part of the 3[wage period], or is employed
under two or more employers during the same 3[wage period] the contri-butions shall fall due on such
days as may be specified in the regulations.
4[(5) (a) If any contribution payable under this Act is not paid by the principal employer on the date on

which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve per
cent. per annum or at such higher rate as may be specified in the regulations till the date of its actual
payment :
Provided that higher interest specified in the regulations shall not exceed the lending rate of interest
charged by any scheduled bank.
(b) Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under
section 45-C to section 45-I.
Explanation. In this sub-section scheduled bank means a bank for the time being included in the
Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).]
40. Principal employer to pay contributions in the first instance. (1) The principal employer shall pay
in respect of every employee, whether directly employed by him or by or through an immediate employer,
both the employers contribution and the employees contribution.
(2) Notwithstanding anything contained in any other enactment but subject to the provisions of this Act
and the regulations, if any, made thereunder, the principal employer shall,
15
in the case of an employee directly employed by him (not being an exempted employee), be entitled to
recover from the employee the employees contribution by reduction from his wages and not otherwise :
Provided that no such deduction shall be made from any wages other than such as relate to the period or
part of the period in respect of which the contribution is payable] or in excess of the sum representing the
employees contribution for the period.
(3) Notwithstanding any contract to the contrary, neither the principal employer nor the immediate
employer shall be entitled to deduct the employers contribution from any wages payable to an employee
or otherwise to recover it from him.
(4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have been
entrusted to him by the employee for the purpose of paying the contribution in respect of which it was
deducted.
(5) The principal employer shall bear the expenses of remitting the contributions to the Corporation.

CHAPTER 5
46. Benefits. (1) Subject to the provisions of this Act, the insured persons, 1[their dependants or the
persons hereinafter mentioned, as the case may be,] shall be entitled to the following benefits, namely :
(a) periodical payments to any insured person in case of his sickness certified by a duly appointed medical
practitioner 2[or by any other person possessing such qualifications and experience as the Corporation
may, by regulations, specify in this behalf] (hereinafter referred to as sickness benefit) ;
3[(b) periodical payments to an insured woman in case of confinement or miscarriage or sickness arising

out of pregnancy, confinement, premature birth of child or miscarriage, such woman being certified to be
eligible for such payments by an authority specified in this behalf by the regulations (hereinafter referred
to as maternity benefit) ;]
(c) periodical payments to an insured person suffering from disablement as a result of an employment
injury sustained as an employee under this Act and certified to be eligible for such payments by an
authority specified in this behalf by the regulations (hereinafter referred to as disablement benefit) ;
(d) periodical payments to such dependants of an insured person who dies as a result of an employment
injury sustained as an employee under this Act, as are entitled to compensation under this Act (hereinafter
referred to as dependants benefit) ; 1[***]
(e) medical treatment for and attendance on insured persons (hereinafter referred to as medical benefit) ;
2[and]

3[(f) payment to the eldest surviving member of the family of an insured person who has died, towards the

expenditure on the funeral of the deceased insured person, or, where the insured person did not have a
family or was not living with his family at the time of his death, to the person who actually incurs the
expenditure on the funeral of the deceased insured person (to be known as 4[funeral expenses].
Provided that the amount of such payment shall not exceed 5[such amount as may be prescribed by the
Central Government] and the claim for such payment shall be made within three months of the death of
the insured person or within such extended period as the Corporation or any officer or authority
authorised by it in this behalf may allow.]
(2) The Corporation may, at the request of the appropriate Government, and subject to such conditions
as may be laid down in the regulations, extend the medical benefits to the family of an insured person.

[48. When person deemed available for sickness benefit. ***]

1

[49. Sickness benefit. The qualification of a person to claim sickness benefit, the conditions subject to
2

which such benefit may be given, the rate and period thereof shall be such as may be prescribed by the
Central Government.
50. Maternity Benefit. The qualification of an insured woman to claim maternity benefit, the
conditions subject to which such benefit may be given, the rates and period thereof shall be such as may
be prescribed by the Central Government.]
3[51. Disablement benefit. Subject to the provisions of this Act 4[* * *]

(a) a person who sustains temporary disablement for not less than three days (excluding the day of
accident) shall be entitled to periodical payment 5[at such rates and for such periods and subject to such
conditions as may be prescribed by the Central Government] ;
(b) a person who sustains permanent disablement, whether total or partial, shall be entitled to
periodical payment 6[at such rates and for such periods and subject to such conditions as may be
prescribed by the Central Government].

85. Punishment for failure to pay contributions, etc. If any person

(a) fails to pay any contribution which under this Act he is liable to pay, or
(b) deducts or attempts to deduct from the wages of an employee the whole or any part of the employers
contribution, or
(c) in contravention of section 72 reduces the wages or any privileges or benefits admissible to an
employee, or
(d) in contravention of section 73 or any regulation dismisses, discharges, reduces or otherwise punishes
an employee, or
(e) fails or refuses to submit any return required by the regulations or makes a false return, or
(f) obstructs any Inspector or other official of the corporation in the discharge of his duties, or
(g) is guilty of any contravention of or non-compliance with any of the requirements of this Act or the
rules or the regulations in respect of which no special penalty is provided,
1[he shall be punishable

2[(i) where he commits an offence under clause (a), with imprisonment for a term which may extend to

three years but

(a) which shall not be less than one year, in case of failure to pay the employees contribution which has
been deducted by him from the employees wages and shall also be liable to fine of ten thousand rupees ;
(b) which shall not be less than six months, in any other case and shall also be liable to fine of five
thousand rupees :
Provided that the Court may, for any adequate and special reasons to be recorded in the judgment, impose
a sentence of imprisonment for a lesser term ;
(ii) where he commits an offence under any of the clauses (b) to (g) (both inclusive), with imprisonment
for a term which may extend to one year or with fine which may extend to four thousand rupees, or with
both].]
3[85-A. Enhanced punishment in certain cases after previous conviction. Whoever, having been

convicted by a Court of an offence punishable under this Act, commits the same offence shall, for every
such subsequent offence, be punishable with imprisonment for a term which may extend to 1[two years
and with fine of five thousand rupees]:
Provided that where such subsequent offence is for failure by the employer to pay any contribution which
under this Act, he is liable to pay, he shall, for every such subsequent offence, be punishable with
imprisonment for a term which may extend to 2[five years but which shall not be less than two years and
shall also be liable to fine of twenty-five thousand rupees].
*85-B. Power to recover damages. (1) Where an employer fails to pay the amount due in respect of
any contribution or any other amount payable under this Act, the Corporation may recover 3[from the
employer by way of penalty such damages, not exceeding the amount of arrears as may be specified in the
regulations
Provided that before recovering such damages, the employer shall be given a reasonable opportunity of
being heard :
4[Provided further that the Corporation may reduce or waive the damages recoverable under this section

in relation to an establishment which is a sick industrial company in respect of which a scheme for
rehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction established
under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), subject to
such terms and conditions as may be specified in regulations.].
(2) Any damages recoverable under sub-section (1) may be recovered as an arrear of land revenue 1[or
under section 45-C to section 45-I].

CLAIM

A claim for dependants' benefit may be submitted to the concerned Branch Office by each
dependant or jointly by all or by some of the dependants inForm18. Also the claim may
be made by the legal representative of a beneficiary or in case of a minor, by his guardian.

THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS

ACT, 1952

EMPLOYEE PENSION SCHEME 1995

4. Payment of contribution
(1) The employer shall pay the contribution payable to the
Employees' Pension Fund in respect of 10[each member] of the
Employees' Pension Fund employed by him directly or by or
through a contractor. 10. Subs. by G.S.R.134 dated the 28th February, 96, for "the member"
(w.e.f. 16th March, 1996)
(2) It shall be the responsibility of the principal employer to pay
the contributions payable to the Employees' Pension Fund by
himself in respect of the employees directly employed by him and
also in respect of the employees employed by or through a
contractor.
11[ Provided that the Central Government shall pay the
contribution payable to the Employees Pension Fund in respect
of an employee who is a person with disability under the Persons
with Disabilities (Equal Opportunities, Protection of Rights and
Full Participation) Act, 1995 (1 of 1996) and under the National
Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 (44 of 1999)
respectively, up to a maximum period of three years
from the date of commencement of membership of the Fund.] 11.
Inserted by GSR No. 252(E) dated 31-3-2008(w.e.f. 1-4-2008)
5. Recovery of damages for default in payment of any
contributions
12[(1) Where an employer makes default in the payment of any

contribution to the Employees' Pension Fund, or in the payment of

any charges payable under any other provisions of the Act or the
Scheme, the Central Provident Fund Commissioner or such
officer as may be authorised by the Central Government, by
notification in the Official Gazette, in this behalf, may recover from
the employer by way of penalty, damages at the rates given
below :- -

8. Resolution of doubts. If any doubt arises whether an employee is

entitled to become a member of the Employees' Pension Fund, the
same shall be referred to the Regional Provident Fund Commissioner
who shall decide the same:

23[12. Monthly Members Pension.

(1) A member shall be entitled to: -

(a) superannuation pension if he has rendered eligible service of

10 years or more and retires on attaining the age of 58 years;

(b) early pension, if he has rendered eligible service of 10 years

or more and retires or otherwise ceases to be in the employment
before attaining the age of 58 years;
(2) In the case of a new entrant the amount of monthly
superannuation pension or early pension, as the case may be,
shall be computed in accordance with the following factors,
namely: -
Monthly members pension = Pensionable salary X Pensionable service
-------------------------------------------------- 70
(3) In the case of an existing member in respect of whom the date
of commencement of pension is after 16th November, 2005:
(i) Superannuation/early pension shall be equal to the aggregate
of: -

(a) Pension as determined under sub-paragraph (2) for the period

of Pensionable service rendered from the 16th November, 1995 or
Rs 635/- per month whichever is more;

20. Duties of Employers.

(1) Every employer shall send to the Commissioner within three
months of the commencement of this Scheme, a consolidated
return of the employees entitled to become members of the
Employees' Pension Fund showing the basic wage, retaining
allowance, if any, and dearness allowance including the cash
value of any food concession paid to each of such employees;
Provided that if there is no employee who is entitled to become a
member of the Employees' Pension Fund, the employer shall
send a "Nil" return.
(2) Every employer shall send to the Commissioner within fifteen
days of the close of each month a return in respect of the
employees leaving service of the employer during the preceding
month.
Provided that if there is no employee leaving service of the
employer during the preceding month the employer shall send a
"NIL" return.
(3) Every employer shall maintain such accounts in relation to the
amounts contributed by him to the Employees' Pension Fund as
the Central Board may, from time to time, direct and it shall be the
duty of every employer to assist the Central Board in making such
payments from the Employees' Pension Fund to his employees
as are sanctioned by or under the authority of the Central Board.
(4) Notwithstanding anything contained in this paragraph, the
Central Board may issue such directions to the employers
generally, s it may consider necessary or expedient, for the
purpose of implementing the Scheme, and it shall be the duty of
every employer to carry out such directions.
21. Employer to furnish particulars of ownership.
Every employer in relation to a factory or other establishment to
which the Act applies or is applied hereafter shall furnish to the
Commissioner particulars of all the branches and departments,
owners, occupiers, directors, partners, managers or any other
person or persons who have the ultimate control over the affairs
of such factory or establishment and also send intimation of any
change in such particulars, within fifteen days of such change, to
the Commissioner by registered post.

42. Punishment for failure to submit return, etc.

If any person,
(a) deducts or attempts to deduct from the wages or other
remuneration of the member, the whole or any part of the
employer's contribution, or
(b) fails or refuses to submit any return, statement or other
documents required by this Scheme or submits a false returns,
statement or other documents, or makes a false declaration, or
(c) obstructs any Inspector or other official appointed under the
Act or this Scheme in the discharge of his duties or fails to
produce any record for inspection by such inspector or other
officials, or
(d) is guilty of contravention of or non-compliance with any other
requirement of this Scheme, he shall be punishable with
imprisonment which may extend to one year or with fine which
may extend to five thousand rupees or with both.
11. Determination of pensionable salary:-
The pensionable salary shall be the average monthly pay drawn
in any manner including on piece-rate basis during the
contributory period of service of the membership of the
Employees Pension Fund.

TAN
TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required
to be obtained by all persons who are responsible for deducting or collecting tax. Under Section
203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN)
allotted by the Income Tax Department (ITD) on all TDS returns.
Since last few years ITD has revised the structure of TAN. It is a unique 10 digit alphanumeric code.
Accordingly, they have issued TAN in this new format to all existing TAN holders.
To facilitate deductors find their new TAN, ITD has now introduced a search facility in their website
(www.incometaxindia.gov.in). Through this facility deductors can search on their name and old TAN
to find the new TAN. Deductors are advised to find the new TAN from this site before it is
incorporated in their e-TDS return file to avoid any inconvenience at the time of furnishing e-TDS
return.

Online Application for TAN (Form 49B)

TIN

TIN stands for Taxpayer Identification Number, is unique number allotted by Commercial tax department
of respective State. Its an eleven digit number to be mentioned in all VAT transactions and
correspondence.

TIN number is used to identify dealers registered under VAT. First two digits of TIN indicate the issued
state code. However, Other 9 digit of TIN creation may differs by state governments.

TIN is applied for both sales done within a state or between two or more states. Tin is also being used to
identify dealers in the same way like PAN, to identification of assesses under income tax act.
 Tin number registration is must for Manufacturer/Traders/Exporters/Dealers. It comes to new registration under
VAT or Central sales tax will be allotted new TIN as registration number. However, all state commercial tax
department of India has stipulation to provide new TIN to existing Manufacturer/Traders /Exporters/Dealers to
replace their old registration / CST number.

So, there is no difference in VAT/CST/TIN because these days only one number is needed for all type of sale you
made. TIN number is called VAT number when it used for intra state sales. The same TIN number is being
considered CST number when it requires.

Since TIN is furnished by various state governments, the documents required differ from
state to state. However, there is a generic list of documents which is applicable to
almost all states in the country when it comes to registration of TIN.
Proof of identity
Proof of address
Proof of address of business enterprise
PAN card of proprietor along with 4-6 passport sized photographs
Reference or Security

SERVICE TAX
G.A.R. 7 for service tax payments. The company was answerable to
commissionerate code 86 with division code 06 and range code 06
1. Levy of service tax
1.1 As on 1st May, 2011, 119 services are taxable services in India. These taxable services are specified in
Section 65(105) of the Finance Act,1994. Section 64 of the Finance Act, 1994, extends the levy of service tax to the
whole of India, except the State of Jammu & Kashmir.

Generally, the liability to pay service tax has been placed on the 'service provider'. However, in respect of
the taxable services notified under Sec.68(2) of the Finance Act,1994, the service tax shall be paid by such
person and in such manner as may be prescribed at the rate specified in Sec.66 of the Act and all the
provisions of Chapter-V shall apply to such person as if he is the person liable for paying the service tax.
The following services have been notified under Sec.68(2) of Finance Act,1994:
A. the services,-

UPVAT rules

Establishment of Check Posts 54 (1) (a)The owner, driver or any other person-in-charge of the vehicle or
vessel shall, in respect of such goods carried in the vehicle or the vessel as are notified under or referred
to in sub-section (1) of section 50 and exceeding the quantity, measure or value specified in the
notification therein, carry with him the following documents- (i) form of declaration for import in Form
XXXVIII or certificate in Form XXXIX hereinafter in these rules referred to as declaration or certificate, as
the case may be, in duplicate, duly filled and signed by the purchaser and seller of the goods or where
goods are transferred otherwise than by way of sale, by consignor & consignee of the goods with status
and address ; (ii) Cash memo, bill, invoice or challan; (b)The owner, driver or any other person-in-charge
of the vehicle or vessel shall in respect of all other goods carried in such vehicle or vessel carry such
documents as may be prescribed by the Commissioner in duplicate. (2) (a) A declaration or certificate
(i) in respect of which a report has been made under sub-rule (9) or rule 56 or sub-rule (8) of rule 57, or
(ii) which is declared as obsolete and invalid by the Commissioner under sub-rule (13) of rule 56 or sub-
rule (10) of rule 57, shall not be valid with effect from the date of the report or the date from which it is
so declared, as the case may be, for the purpose of sub-rule (3). (b) A certificate whose period of validity
as specified in sub-rule (4) of rule 57 has expired shall not be valid for the purposes of sub-rule (3). (3)
The owner of the truck or vessel or the transport agency, forwarding agency or clearing agents, as the
case may be, shall deliver to the consignee, while delivering the consigned goods, the duplicate copy of
the declaration or certificate, as the case may be. (4) The owner, driver or any other person-in-charge of
the vehicle or vessel shall carry the trip sheet in Form XL in respect of goods referred to in clause (a) of
sub-rule (1). Separate trip sheets shall be submitted for goods meant for different destinations. - 61 - (5)
The commissioner may from time to time issue instructions with regard to the procedure to be followed
regarding import of goods from out of State and submission of declaration or certificate before
assessing authority.

[2016] 62 NTN DX 267

[ALLAHABAD HIGH COURT]
Hon'ble Yashwant Varma,J.

Sales/Trade Tax Revision Defective No. - 373 of 2012

Commissioner, Commercial Tax
Vs.
Berger Paints India Ltd.
Date of Decision : 30th August, 2016
For the Applicant : S.C.
Penalty blank Form 38 - U.P. VAT Tax Act, 2008 Section 54(1)(14) - U.P. VAT Rules, 2008 Rule 54 goods
imported inside the State against a blank Form 38 assessing authority imposed penalty Tribunal by the
order impugned deleted penalty after returning categorical findings about entries in books of accounts and
payments made by cheque in regard to questioned transaction High Court held- no grounds for
interference with the view taken by the Tribunal Revision is dismissed.
JUDGEMENT
Hon'ble Yashwant Varma,J.
(i) Order on the delay condonation application:-
Sri Ashok Kumar has entered appearance on behalf of the assessee. He does not oppose the prayer for condonation
of delay in preferment of the instant revision. The Court even otherwise finds sufficient cause having been shown for
condonation of delay.
The delay condonation application is accordingly allowed.
(ii) Order on the revision:-
Heard Sri B.K. Pandey, learned standing counsel and Sri Ashok Kumar, learned counsel for the respondent
assessee.
The assessee was subjected to a penalty for having imported certain goods into the State of U.P in violation of the
requirements placed by Rule 54 of the U.P. Value Added Tax Rules 2008. The allegation was that the goods had
been imported into the State of U.P on the back of a blank Form-38. Consequently penalty was imposed upon the
assessee in accordance with the provisions of Section 54 (1) (14) of the UP VAT Act 2008.
This Court finds that the Tribunal has recorded a categorical finding to the effect that the goods which had been
imported had been duly accounted for in the books of the assessee who was a bonafide registered dealer. It has
further recorded that the payment for the imported goods was made via cheque. In the aforesaid backdrop, the
Tribunal has come to a finding that there was no intent to evade payment of tax.
This Court finds no grounds which may call for interference with the view taken by the Tribunal. The revision is
consequently dismissed.

Uttrakhand VAT act of 2005 of Civil/Electrical contract

ESIC 6.5% = 1.75% (Employee)+4.75% (Employer)

PF (12%+12%)