Since the Ease of Doing Business and Startup India Standup India are flagship programs of Indian prime minister , every
ministry is trying to synchronizes with the concept of ease of business particularly with newly set up startups. Earlier , Finance Minister presented Finance Bill 2016 and brought in many incentives like 100%
profit exemption u/s 80IAC , long term
capital gains exemption under section 54EE and
section 54GB . Now , the secretary, Ministry of Labour has issued a letter to Employees Provident Fund Organization and Employees State Insurance Corporation stating that newly set up startups should be asked to file only self declaration regarding the compliance under EPF and MP Act 1952 in first year and no inspections should be carried out by authorities . The exact relief given by Minsitry of Labour is as under :
a. For the first year of setting up of the Start-ups, such establishments may not be inspected under EPF & MPAct, 1952.These Start-ups may be asked to submit an online self-declaration instead.
b. Start-Ups are allowed to submit self-certified returns under EPF & MP Act, 1952. From the second year onwards, up to three year from the setting up of the unit, such Start-Ups may be taken up for inspection only when very credible and verifiable complaints of violation is filed in writing and the approval has been obtained from the Central Analysis and Intelligence Unit (CAIU).
The Letter issued by the Ministry fo Labour is as under :
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