"13. Where an employee has not worked for all the working days in any accounting year, the bonus payable to him under section 10 shall be proportionately reduced.".
12. For section 15 of the principal Act, the following section shall be substituted, namely:—- "15. (1) Where-for any accounting year the allocable surplus exceeds the amount of bonus payable to the employees in the establishment under section 10, then, the excess shall, subject to a limit of twenty per cemt. of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on, to be utilised for the purpose of payment of bonus, in the manner illustrated in the Third Schedule.
(2) Where for any accounting year, there is no allocable surplus or the allocable surplus in respect of that year falls short of the amount of bonus payable to the employees in the establishment under section 10, and there is no sufficient amount carried forward and set on under sub-section (1) which could be utilised for the purpose of payment of bonus, then, so much amount as is necessary for the payment of bonus under this Act shall be carried forward for being set off in the succeeding accounting year and HO on, in the manner illustrated in the Third Schedule.
Omission of section
11.
Amendment of section
12.
Substitution of new section for section
13.
Proportionate deduction in bonus in certain cases.
Substitution of new section fop section
15.
Set on and set oft of allocable surplus.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 633
(3) The principle of set on and set off as illustrated in the Third Schedule shall apply to all other cases not covered by subsection (1) or sub-section (2) for the purpose of payment of bonus under this Act.".
13. In section 16 of the princip/fl Act,—
(a) for sub-section (1) and the Explanations thereto, the following sub-sections and Eocplanations shall be substituted, namely: — "(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-sections {1A), (IB) and (2C).
(1A) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act in relation to that year but without applying the provisions of section 15.
(IB) For the sixth and seventh accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 15 shall apply subject to the following modifications, namely: —
(i) for the sixth accounting year— set on or set off, as the case may be, shall be made in the manner illustrated in the Third Schedule taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus sot on or set off in respect of the fifth and sixth accounting years;
(ii) for the seventh accounting year— set on or set' off, as the case may be, shall be made in the manner illustrated in the Third Schedule taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.
Amendment of section IS.
634 T H E GAZETTE OF INDIA EXTRAORDINARY [PART II— (1C) From the eighth accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 15 shall apply in relation to such establishment as they apply tin relation to any other establishment.
Explanation I.—rFor the purpose of sub-section! (1), an establishment shall not be deemed to be newly set up merely by reason of a change in its location, management, name or ownership.
Explanation II.—For the purpose of sub-section (1A), an employer shall not be deemed to have derived profit in any accounting year unless—
(a) he has made provision for that year's depreciation to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural Income-tax law; and
(b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.
Explanation III.—For the purposes of sub-sections (1A), (IB) and (1C), sale of the goods produced or manufactured during the course of the trial running of any factory or of the prospecting stage of any mine or any oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appropriate Government made after giving the parties a reasonable opportunity of representing the case, shall be final and shall not be called in question by any court or other authority.";
(b) in sub-section (2), for the word, brackets and figure "subsection (1A)", the words, brackets, figures and letters "sub-sections (1), (1A), (IB) and (lC)" shall be substituted.
14. In section 19 ef the principal Act,—
(a) in sub-section (1), for the brackets, figure and words "(I)- Subject to the provisions of this section, all amounts", the words "All amounts" shall be substituted;
(by sub-sections (2) to (7) shall be omitted.
Amendment of section
10.
19, In section 20 of the principal Act,—
(a) in sub-section (1), the- brackets and figure "(1)" shall be omitted;
(b) sub-section (2) shall be omitted.
Amend, ment of section
20.
16. In section 21 of the principal Act, ;n the Explanation, the figures ", 24" shall be omitted.
Amend - mcnt of section
21.
17. In section 23 of the principal Act, in sub-section '(1), for the words and figures "and in sections 24 and 25", the words and figures "and in section 25" shall be substituted.
Amendment of secti on
23.
REP 11 THE GAZETTE OF INDIA EXTRAORDINARY 635
18. Section 24 of the principal Act shall be omitted.
19. In section 27 of the principal Act, sub-section (5) shall be omitted.