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Showing contexts for: para wise reply in Gemini Communicaion Ltd., Chennai vs AssesseeMatching Fragments
Para-wise reply of the assessment order:
1.Paras 1 to 5.1 are statements of facts and i'n places were we do not concur we have SUitably replied our side of the facts in our earlier paras.
2.IN reply to para 5.2.1 we would like to humbly state that the AO does not take into consideration that that 8 out of the 10 employees who were employed at parwanoo manufacturing unit belonged to Himachal and the same number was approved by the Member Secretary of the HPSIDC. (Annexure - page 18-20).
Also he did not agree that the PF and ESI contributions are centralized and these payments effected from Head Office Level. The understanding of the business needs to be there for the AO to pass an order which unfortunately is missing. We had repeatedly told the AO that even though the value is large we don't need more people to do this job. In Information Technology and especially in hardware manufacturing a small chip can be the game changer and of very high value. He failed to note that the contract workers were temporary in nature and they were utilized for incidental domestic purpose and there was no need to deduct PF and ESI for them as per concerned Act's. We have provided the pf accounts for the 10 employee's who were working for us in parwanoo. Since the AO is looking at it with a closed mind set these details have not been appreciated by him. U/S 2(12) of the ESI Act is applicable to nonseasonal factories employing 10 or more· persons. The existing wage limit for coverage is Rs.15.000/- (W.E.F 01.05.2010. Previously it is Rs.7.500/-) As per the PF Act. it is only applicable for the establishment employing 20 or more persons. From the above provisions of both ESI and PF Act, it is very clear as for as the HP unit is concerned, it is not necessary to deduct even for the permanent employees of 10 M/s.Gemini Communication Ltd the HP unit. Because, their minimum monthly salary is above the limit specified and the number of employees of the establishment is below 20, specified in PF Act.