1. Introduction Under the Article 17 of the constitution of Pakistan 1973, Punjab Industrial Relation Act 2010 provides freedom to all the employees to form the trade union or freedom to join such type of trade unions. The main object of formation of such trade union is to resolve the conflicts peacefully arising between the employer and employees. Punjab Industrial Relation Act 2010 provides the procedure of registration and cancellation of trade union. 2. Relevant provision Section 3,6,7,8,9,10 and 11 of Punjab Industrial Relation Act 2010 deals with registration and cancellation of trade union. 3. Definition of trade union A trade union is an organization which is formed by workers in order to promote and protect their rights such as their wages and working conditions etc. 4. Procedure of registration of trade union Following is the procedure of registration of trade union. Details are as under. 1. Submission of Application Under the Punjab Industrial Relation Act 2010, President and general secretary of the trade union shall submit the application for the registration of the trade union to the concerned authority. A. Requirements of Application Following are the requirements of the application for registration of trade union. i. Name and address of trade union Application for registration of trade union must contain the name and address of the head office of the trade union. ii. Name of company Application for registration of trade union must contain the name of the company in which the trade union has been formed. iii. Date of formation Application for registration of trade union must contain the date of formation of the trade union. iv. Object of formation Application for registration of trade union must contain the object of formation of the trade union for which it has been formed. v. Conditions of benefits Application for registration of trade union must contain the conditions of benefits which will be given to the members. vi. Conditions of penalties Application for registration of trade union must contain the conditions of penalties which will be imposed on the members. vii. List of members Application for registration of trade union must contain the list of members of the trade union. viii. Mode of dissolution Application for registration of trade union must contain the manner in which the trade union shall be dissolved. 2. Submission of Copy of Resolution Under the Punjab Industrial Relation Act 2010, President and general secretary of the trade union shall submit the copy of resolution in which the members of the union have authorized the president and general secretary to apply for registration of union. 3. Submission of Copy of Constitution Under the Punjab Industrial Relation Act 2010, President and general secretary of the trade union submit the copy of constitution which contains the rules and regulations of the trade union. Copy of constitution shall be bearing the signature of the chairman of the meeting. 5. Procedure of cancellation of registration of trade union Following is the procedure of cancellation of registration of trade union. Details are as under. 1. Complaint by the registrar Under the Punjab Industrial Relation Act 2010, the registrar of the trade union will make a complaint in the labour court for cancellation of the registration of the trade union. Any person other than the registrar cannot make a complaint in the labour court for such cancellation. 2. Inquiry by the court The labour court shall determine the complaint which has been made by the registrar. Court will inquire about the allegations made by the registrar. 3. Direction to the registrar After inquiry of the complaint if the court thinks fit, the court shall direct the registrar to cancel the registration of the trade union. 4. cancellation of registration of trade union After receiving the directions from the labour court for cancellation of registration, the registrar shall cancel the registration of trade union by expressing the reasons of cancellation. 6. Conclusion To conclude I can say that Punjab Industrial Relation Act 2010 provides the procedure of registration of trade union as well as it also provides the procedure of cancellation of registration of trade union. Trade union is such union which is formed to protect the right of the members of that association such as their wages or their working conditions etc. Q # 2: What do you understand by the term of strike and lockout? Explain the circumstances under which a strike or lockout become illegal? 1. Introduction According to the rules of Punjab Industrial Relation Act 2010, if any industrial dispute arises between the worker and the company, in this case the temporary work stoppage by the company is known as lockout and temporary work stoppage by the worker is known as strike. In strike, the workers stop working in order to compel the company to fulfill their demands, in lockout company closes working in order to compel the workers to fulfill their requirements. 2. Relevant provision Section 40, 41,42,43,44 and 45 of Punjab Industrial Relation Act 2010 deals with strike and lockouts. 3. Definition of lockout In case of arising a dispute between the company and the worker, if company closes the work in order to compel the workers to fulfill their requirements, it is known as lockout. 4. Definition of strike In case of arising a dispute between the company and the worker, if worker stops the work in order to compel the company to fulfill their demands, it is known as strike. 5. When strikes and lockouts are illegal Following are the cases when strikes and lockouts shall be considered as illegal. 1. Against the contract The strike and the lockout shall be considered as illegal if strike or lockout is done against the terms and conditions of the contract of employment. 2. Without Service of notice The strike and the lockout shall be considered as illegal if a notice of the strike or a notice of the lockout has not been served before the commencement of the strike or lockout. 3. Before expiry of notice period The strike and lockout shall be considered as illegal if the strike or lockout has been done before expiry of notice period 4. Pendency of conciliation proceedings The strike and lockout shall be considered as illegal if the conciliation proceedings are pending before the conciliation officer in the labour court 6. When lockout can be counted Following are the conditions in which lockout can be counted 1. Closing the workplace Lockout can be counted when the area of workplace has been closed temporarily for the workers due to an industrial dispute. 2. Lockout for few workers Lockout can be counted when the area of workplace has been closed for few workers of the company due to an industrial dispute. 3. Company demand Lockout can be counted when the company has made a demand from the workers to fulfill and has closed the area of workplace until demand is fulfilled. 7. When strike can be counted Following are the conditions in which strike can be counted 1. Industrial dispute Strike can be counted when there is an industrial dispute between the company and workers. 2. Stoppage of work Strike can be counted when the working has been stopped by the workers due to an industrial dispute 3. Workers demand Strike can be counted when the workers have made a demand from the company to fulfill and have stopped working until their demand is fulfilled. 8. Difference between strike and lockout Following are the differences between strike and lockout. Details are as under. 1. As to nature In strike, the workers stop working due to industrial dispute In lockout, the company closes the area of working due industrial dispute 2. As to types There are multiple types of strikes There is no type of lockout 3. As to reason In strike, reason of strike is often economic In lockout, reason of lockout may be economic or non-economic 4. As to weapon Strike is a weapon which is used by workers Lockout is a weapon which is used by company 9. Types of strikes Following are the different kinds of strikes. 1. General strike 2. Sit-down strike 3. Pen/tool down strike 4. Go slow strike 5. Go speed strike 10. Conclusion To conclude I can say that according the Punjab Industrial Relation Act, both employers and employees are entitled to make a strike or make a lockout in order to compel each other to fulfill their demands. But there are some restrictions have been imposed on strikes and lockouts which make them illegal in the eyes of law. Q # 3: Discuss the provisions relating to establishment, powers and functions of labour court? 1. Introduction Under the PIRA 2010, the main mission of the Labour Court is to provide high quality and fair arrangements for the resolution of industrial disputes which arise between the worker and the company in the light of employment law. The labour courts have been established to protect the rights of both employee and the employer. 2. Relevant provision Section 46 of Punjab Industrial Relation Act 2010 deals with establishment, powers and functions of the labour court. 3. Establishment of labour court The labour court is established in the province U/sec 44 (1) 1. Consultation with Chief Justice In order to establish a labour court in the province, the Provincial government is bound to consult with the chief justice of the respective high court about the establishment of labour court 2. Notification in official gazette In order to establish a labour court in the province, the provincial government is bound the notify in the official gazette about the establishment of the labour court 3. Establishment of more than one labour courts In order to establish more than one labour court in the province, the provincial government is bound to define territorial limits and jurisdiction of all the labour courts 4. Presiding officer In order to run the business of the labour court, the provincial government shall appoint one presiding officer after consultation with the chief justice of the respective high court. Presiding officer shall qualify to be a Judge, Additional judge or A District Judge. 4. Functions of labour court U/Sec 44 (4) Following are the functions of labour court. Details are as under. 1. Determination of industrial disputes The labour court shall determine the industrial dispute which has been aroused between the worker and the company. 2. Determination of settlement disputes The labour court shall determine the settlement dispute which has been aroused between the worker and the company. 3. Other functions The labour court shall determine other matters which have been brought before it 5. Powers of labour court U/Sec 45 Following are the powers of labour court. Details are as under. 1.Power to grant relief Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to grant final relief to the aggrieved party. 2.Power to grant interim relief Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to grant interim relief to the aggrieved party. 3.Power to grant adjournment Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to grant adjournment in any case if there are valid reasons for such adjournment 4.Power to enforce attendance of any person 5. Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to issue summons, proclamation for enforcement of attendance of any person whose attendance is necessary for deciding the matter before it. 6.Power to proceed ex-parte proceeding Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to proceed ex-parte proceedings if any of the party failed to appear before the court. 7.Power to production of documents Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to compel any of the party to produce the documents before the court which are necessary to decide the matter. 8.Power to take oath Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to take oath from any of the party during the proceedings. 9.Power to make commission Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to make a commission to examine the documents presented in the court or for the examine of witnesses. 10. Power to withdraw the case Under the Punjab Industrial Relation Act 2010, the labour court has been empowered to withdraw any of the case before final decision if there are valid reasons for such withdrawal. 6. Exemption of court fee Under the Punjab Industrial Relation Act 2010, a plaintiff is exempted from the court fee if he files any case in the court or if he obtains any document from the court. 7. Conclusion To conclude I can say that under the Punjab Industrial Relation Act 2010, all the labour courts are empowered to resolve the industrial disputes which are aroused between the workers and the company. Labour court deals with both civil and criminal cases related to industry, the labour court is not sub-ordinate to the high court under the Article 201 of the constitution of the Pakistan 1973. Q # 4: What do you understand by the term unfair labour practice? Discuss various actions which have been declared to be unfair labour practice on the part of worker. 1. Introduction Under the Punjab Industrial Relation Act 2010, unfair labour practice is meant an unfair act such as employee’s omission to do work, strike, go-slow, intimidation , persuasion other workers forcefully to join or leave a trade union by using illegal methods. Furthermore, attempt to compel the employer or competent person other than the employer to accept their demands comes under unfair labour practices. 2. Relevant provision Section 31, 32 and 33 of the Punjab Industrial Relation Act 2010 deals with Unfair Labour Practice. 3. Definition of unfair labour practices Legally prohibited actions by an employer or by the labour on the part of workman are known as unfair labour practices. 4. Unfair labour practices on the part of worker U/Sec 18 Following are the unfair practices on the part of workman under section 18. Details are as under. 1. Illegal Strike Under the Punjab Industrial Relation Act 2010, if any worker of the company is compelling the other workers to commence a strike or take part in the strike by using of force, by threat of confinement etc. Such worker will be guilty of unfair labour practice. 2. Go-slow Under the Punjab Industrial Relation Act 2010, if any worker of the company is compelling the other workers to slow down the normal output by using of force, by threat of confinement etc. Such worker will be guilty of unfair labour practice. 3. Attempt to compel employer Under the Punjab Industrial Relation Act 2010, if any worker of the company is compelling the employer to accept any demand by using of force,, by threat of confinement etc. Such worker will be guilty of unfair labour practice. 4. Attempt to compel person other than employer Under the Punjab Industrial Relation Act 2010, if any worker of the company is compelling the competent person other than the employer to accept any demand by using of force, by threat of confinement etc. Such worker will be guilty of unfair labour practice. 5. Intimidation (Threatening) Under the Punjab Industrial Relation Act 2010, intimidation includes the element of force , if any worker of the company is forcing someone not to become member of trade union, or leave the trade union etc, such person will be guilty of unfair labour practice. 6. Persuasion Under the Punjab Industrial Relation Act 2010, persuasion includes the element of convincing someone against his will. If any worker of the company is convincing someone not to become member of trade union, or leave the trade union etc, such worker will be guilty of unfair labour practice. 7. Inducement ( Influence) Under the Punjab Industrial Relation Act 2010, inducement includes the element of offering benefits to someone which are illegal. If any worker of the company is offering illegal benefits to someone not to become member of trade union, or leave the trade union etc, such worker will be guilty of unfair labour practice. 8. Carry weapons Under the Punjab Industrial Relation Act 2010, if any worker of the company is carrying the weapons within the premises of the company without the permission of competent authority, in this case such worker will be guilty of unfair labour practice. 9. Destruction of company’s property Under the Punjab Industrial Relation Act 2010, if any worker of the company is compelling the other workers to destroy the company’s property, in this case such worker will be guilty of unfair labour practice. 10. Interference in election Under the Punjab Industrial Relation Act 2010, if any of the trade unions of the company is interfering in the election process of another trade union of the same company by using different means, in this case such trade union will be guilty of unfair labour practices. 11. Refuse to bargain Under the Punjab Industrial Relation Act 2010, if any of the workers of the company refuses to bargain with the employer to settle a dispute between them by way of negotiation, in this case such worker will be guilty of unfair labour practices. 5. Penalty for Unfair Labour Practice on the part of workman U/Sec 63 Following are the penalties for Unfair Labour Practice on the part of workman under section 63 of Punjab Industrial Relation Act 2010. 1. An office bearer Under the Punjab Industrial relation Act 2010, an office bearer of trade union shall be fined which may extend to Rs 20,000, if he goes against the section 18 except clause (d) of section 1. 2. Person other than office bearer Under the Punjab Industrial relation Act 2010, person other than an office bearer of trade union shall be fined which may extend to Rs 30,000, if he goes against the section 18 except clause (d) of section 1. 6. Conclusion To conclude, I can say that under the Punjab Industrial Relation Act 2010, all the workers can raise their voice in order to get the benefits given by the act, but PIRA also restricts the workman not to force the employer to get those benefits for which they are not legally entitled for. Q # 5: Discuss the law relating to the distribution of compensation amongst the legal heirs of a deceased worker. 1. Introduction Under the workmen’s compensation act 1923, the compensation shall be paid by the employer to a workman for any personal injury suffered by him in the course of his employment. Natural disabilities are excluded from the payment of compensation. Occurrence of accident after the working hours in outside the working area is also excluded from the payment of compensation. 2. Relevant provision Section 08 of the Workmen’s compensation act 1923 deals with distribution of compensation amongst the legal heirs of the deceased workman. 3. Definition of workman A man who does physical work especially in an industry for wages is known as workman. 4. Who are considered dependents in case of distribution of worker’s compensation Following are the persons who are considered dependents to receive the amount of compensation if the worker has been died in an accident during the course of employment. 1. Parents Under the Workmen’ compensation Act 1923, the parents may be considered as dependents to receive the amount of compensation after the death 2. Grandparent if parents of deceased are not alive Under the Workmen’ compensation Act 1923, the grandparents if the parents of deceased are not alive, may be considered as dependents to receive the amount of compensation after the death 3. A widow Under the Workmen’ compensation Act 1923, a widow may be considered as dependent to receive the amount of compensation after the death of her husband. 4. A widower Under the Workmen’ compensation Act 1923, a widower may be considered as dependent to receive the amount of compensation after the death of his wife. 5. Minor son Under the Workmen’ compensation Act 1923, a minor son who has not attained the age of 15, may be considered as dependent to receive the amount of compensation. 6. Unmarried daughter Under the Workmen’ compensation Act 1923, an unmarried daughter may be considered as dependent to receive the amount of compensation. 7. Widowed mother Under the Workmen’ compensation Act 1923, a widowed mother may be considered as dependent to receive the amount of compensation after the death. 8. Widowed sister Under the Workmen’ compensation Act 1923, a widowed sister may be considered as dependent to receive the amount of compensation after the death. 9. Legitimate adopted son Under the Workmen’ compensation Act 1923, a legitimate adopted son may be considered as dependent to receive the amount of compensation after the death. 10. Legitimate adopted daughter Under the Workmen’ compensation Act 1923, a legitimate adopted daughter may be considered as dependent to receive the amount of compensation after the death. 5. Where employer is liable to pay compensation Following are the conditions where the employer is liable to pay the amount of compensation to the deceased worker. 1. Injury to workman Employer is liable to pay compensation if injured person is a workman of his company. 2. Injury during the course of employment Employer is liable to pay compensation if injured person has suffered an injury during the course of employment. 3. Injury exceeds four days Employer is liable to pay compensation if injury is exceeding four days. 6. Where employer is not liable to pay compensation Following are the conditions where the employer is not liable to pay the amount of compensation to the deceased worker. 1. Short period of injury Employer shall not be liable to pay compensation if injury is not exceeding four days. 2. Injury under voluntary intoxication Employer shall not be liable to pay compensation if injury is suffered due to the voluntary intoxication of the workman. 3. Willful disobedience to safety rules Employer shall not be liable to pay compensation if injury is suffered due to willful disobedience to safety rules by the workman. 4. Willful removal of safety guards Employer shall not be liable to pay compensation if injury is suffered after willfully removal of due to willful disobedience to safety rules by the workman. 5. Injury not resulting the death Employer shall not be liable to pay compensation if injury suffered is not resulting in death of the worker 7. Conclusion To conclude I can say that the Workmen’s compensation Act 1923, provides compensation to the heirs of workman if the workman gets died during the course of employment. But there are some exceptions to this rule, if the employee suffers minor injury, injury due to his negligence, injury not resulting the death of workman, in this case the workman shall not be paid any kind of compensation by the employee. Q # 6: Discuss the law relating to medical examination of an injured worker. Also state the consequences in case such worker fails in presenting himself/herself for such examination? 1. Introduction Under the workmen’s compensation act 1923, the medical examination fee shall be paid by the employer to an injured person but here an employee shall also provide medical examination at the request of the employer where treatment continues for several years. If the employee refuses to submit an examination, in this case his right of compensation shall be lost. 2. Relevant provision Section 11 of the Workmen’s compensation act 1923 deals with Medical examination of injured workman. 3. Definition of workman A man who does physical work especially in an industry for wages is known as workman. 4. Procedure of medical examination Following is the procedure of medical examination of injured worker. Details are as under. 1. Notice by workman Under the Workmen’s Compensation Act 1923, worker is bound to inform his employer about injury suffered by him within three days. Worker is also under an obligation to convey the occurrence of injury. 2. Appointment of medical practitioner Under the Workmen’s compensation Act 1923, as soon as the injury is reported to employer, employer is required to appoint a qualified medical practitioner to examine the injured workman within three days of the injury. 3. Presentation of workman before practitioner Under the Workmen’ Compensation Act 1923, after appointment of a qualified medical practitioner, the workman shall also present himself for examination from time to time prescribed by such doctor. Compensation is started from the date when he produces himself to doctor. 5. Subsequences of not to present himself before practitioner for medical examination Following are the subsequences of refusal of the worker to present himself before the medical practitioner for medical examination. Details are as under. 1. Refusal of workman Under the act, if the workman refuses to present himself for medical examination before the prescribed doctor, in this case compensation shall not be paid unless he presents himself before the doctor. 2. Death of workman Under the act, if the workman dies before medical examination from the prescribed doctor, in this case the decision about compensation shall rest to the commissioner for the pay of compensation. 3. Absence of workman Under the act, if the workman remains absent for the period of three months and does not present himself for medical examination before the prescribed doctor, in this case compensation shall not be paid to the workman. 4. Deliberate absence of workman Under the act, if the workman remains deliberately absent for the period of three months and does not present himself for medical examination before the prescribed doctor and minor injury converted into major injury in this case compensation for minor injury shall be paid only. 5. Leave of workman Under this act, if a workman leaves the office and does not present himself before the prescribed doctor, in this case compensation shall not be paid to the workman until he returns and presents himself for medical examination. 6. Where employer is not liable to pay medical examination Following are the conditions where the employer is not liable to pay the amount of compensation to the workman. 1. Short period of injury Employer shall not be liable to pay for medical examination if injury is not exceeding four days. 2. Injury under voluntary intoxication Employer shall not be liable to pay compensation if injury is suffered due to the voluntary intoxication of the workman. 3. Willful disobedience to safety rules Employer shall not be liable to pay compensation if injury is suffered due to willful disobedience to safety rules by the workman. 4. Willful removal of safety guards Employer shall not be liable to pay compensation if injury is suffered after willfully removal of due to willful disobedience to safety rules by the workman. 5. Injury not resulting the death Employer shall not be liable to pay compensation if injury suffered is not resulting in death of the worker 7. Conclusion TO conclude I can say that if any of the workers suffers an injury during the course of employment, in this case the employer is under an obligation to pay the fee of medical examination of the workman to the certified physician. This act gives rise to the rights of both employer and the workman. Q # 7: Discuss the procedure to be followed for the eviction of a worker from residence, in case of dismissal or death of worker? 1. Introduction If you live in accommodation provided by your employer, you will be a service tenant. Because your right to live in the accommodation is subject to your job, it is often called tied accommodation. You may pay rent to your employer or it may be deducted from your wages. In tied accommodation, an employer has a right to evict a worker from residence after his dismissal, termination or death etc. 2. Relevant provision Section 16 of the The Industrial and Commercial Employment (standing orders) ordinance, 1968 deals with eviction of worker from residence after dismissal or death. 3. Definition of eviction The action of expelling someone from a property by a legal process is known as eviction. 4. Procedure of eviction of worker Following is the procedure of eviction of worker from the residence. Details are as under. 1. Notice to the worker If any of the workers has been dismissed, terminated or retired from the services, in this case the employer shall serve a notice to the worker to evict the residence before submission of complaint before the magistrate. 2. Submission of complaint After service of the notice to the worker for eviction of residence, if the worker gets failed to vacate the residence, In this case the employer shall submit an application before Magistrate of 1 st Class. 3. Hearing of the parties After submission of complaint by the employer, the Magistrate of 1st class shall hear the parties to decide the case 4. Order of eviction After hearing the parties, the Magistrate may pass an order of eviction by giving reasonable time to a worker to vacate the residence 5. Appointment of police officer After passing an order of eviction, the Magistrate may appoint a police officer to evict the worker and other persons from the residence if they have failed to vacate the residence within the time allowed 6. Notification to a worker After appointment of the police officer for eviction of residence, the appointed police officer shall notify the worker and shall allow two hours to vacate the residence by informing them his intension before applying any force for taking the possession of the residence. 7. Physical removal After notification by the police officer, if the worker gets failed to vacate the residence, the police officer is legally allowed to physically remove the worker from residence or lock him out in the residence. 5. Conditions of eviction of worker Following are the conditions of eviction of worker from residence. Details are as under. 1. Retirement of worker Under The Industrial and Commercial Employment (standing orders) ordinance, 1968, an employer may end the tenancy of a worker, if it was provided to the worker who has been retired from the services 2. Termination of worker Under The Industrial and Commercial Employment (standing orders) ordinance, 1968, an employer may end the tenancy of a worker, if it was provided to the worker who has been terminated from the services 3. Provision to new worker Under The Industrial and Commercial Employment (standing orders) ordinance, 1968, an employer may end the tenancy of a worker, if it is being given to any new employee. 6. Essentials of agreement for residence Following are the essentials of agreement which have been written between the employer and the employee. Details are as under. 1. Address of the premises If the accommodation is being provided by the employer, in this case address of the premises should be mentioned in the agreement. 2. Names of Employer and Employee If the accommodation is being provided by the employer, in this case name of the employer and the employee should be mentioned in the agreement. 3. Signatures of Employer and Employee If the accommodation is being provided by the employer, in this case signatures of the employer and the employee should be put on the agreement. 4. Statement of agreement If the accommodation is being provided by the employer, in this case there should be mentioned a statement according to which the employer at any can end the facility of residence from the worker. 7. Period of vacation of residence Under the provision of “The industrial and commercial Employment Act 1968, the worker who has been retired, or dismissed from the services, he shall vacate the residence within the period of two months from the date of his dismissal or retirement. 8. Conclusion To conclude I can say that if accommodation is being provided to any of the worker for the period of his employment, It is only subject to his employment if employment has been ended due to dismissal, termination or retirement. In case of dismissal or retirement, the worker is under an obligation to vacate the residence as soon as possible. Q # 8: What do you understand by the term” Collective Bargaining Agent”? Analyze the legal provisions relating its establishment, group of establishment. 1. Introduction Generally a bargaining power of the employees is very poor as compared to employers. So they adopt the way of collective bargaining to obtain the proper reward of their services. For this purpose trade unions are organized. Trade unions do the bargaining with the employers on behalf of the worker. Trade unions perform the duty of an agent in the matters of collective bargaining for the workers. 2. Definition of Collective bargaining agent A union that possesses the sole authority to act on behalf of all the employees of a particular type in a company. 3. Appointment of Collective Bargaining Agent Following are the ways to appoint a collective bargaining agent. Details are as under. 1. In case of single trade union If there is only one registered trade union and 1/3 members of the total employees can make their trade union as collective bargaining agent to represent their interests. In this case the Registrar shall declare the trade union as collective bargaining agent on receiving an application. 2. In case of more than one trade unions If there are more than one registered trade unions and 1/3 members of the total employees of each trade union can make their trade union as collective bargaining agent to represent their interests by a secret balloting. In this case the Registrar shall declare the trade union as collective bargaining agent after counting the vote. 4. Rights and duties of collective bargaining agent Following are the rights and duties of collective bargaining agent. Details are as under. 1. Right of appointment of representative It is the right of the collective bargaining agent to appoint a representative of workmen to discuss their interests with the employers. 2. Right of appointment of Auditors It is the right of the collective bargaining agent to appoint an auditor to audit the accounts of the company according to the worker’s point of view. 3. Right to nominate shop steward It is the right of the collective bargaining agent to nominate a shop steward who provides link between the management and the workers. 4. Right Of Strike It is the right of a collective bargaining agent to declare the strike or may issue the notice of strike. 5. Right to face proceedings It is the right of the collective bargaining agent to face the judicial proceedings which has been initiated against the workmen 6. Right of collective bargaining It is the right of collective bargaining agent to undertake the collective bargaining with the employer in order to discuss the matters connected with the employment. 5. Collective Bargaining Process The collective bargaining process involves five core steps 1. Preparation Both the union and employer choose their representatives who should be skilled in negotiation and labor laws and determines that whether they have a strong standing for negotiation 2. Discussion Representatives of both the union and the employer meet to discuss the grounds rules for the collective bargaining negotiation process. 3. Proposal Representatives of both the union and the employer make opening statements in order to find out the possible solution to the issue. 4. Bargaining By following the proposals, representatives of both the union and the employer start bargaining to create an agreement that is acceptable to both parties. This becomes a “draft” agreement, which is not legally binding. 5. Final Agreement Once an agreement is made between the parties, it is put in writing, signed by the parties, and it comes into in force. 6. Objectives of collective bargaining Following are the objectives of collective bargaining agent, Details are as under. 1. It Maintains cordial relations between management & the workers 2. It Settles all the disputes relating to working conditions & wages 3. It protects the interest of workers through collective action. 4. It ensures the participation of all the trade unions 5. It Resolves the differences between workers and management 7. Conclusion To conclude I can say that collective bargaining is a process of negotiation between employers and employees about to regulate working salaries, working conditions, benefits, compensation and other rights of workers. The interests of the employees are presented by representatives of trade union such as to set out wage scales, working hours, training, safety measurement, overtime, grievance mechanisms etc. Q # 1: What do you understand by the term deduction of tax at source? Discuss the principles of deduction of tax at source from salary and profit on debts. 1. Introduction Tax Deduction at Source (TDS) is a system introduced by Income Tax Department, where a person who is responsible for making payments such as salary, profit, or rent, etc, is liable to deduct a certain amount of tax before making payment to the receiver. The amount of tax deducted by a person will be deposited into the credit of the government. 2. Relevant provision Section 149 to 158 of Income Tax Ordinance 2001, deals with deduction of tax at source. 3. Applicability of Tax Deduction at Source Following are the sources where the principle of Tax Deduction at Source is applicable. 1. Payment of Salary Under the Tax Deduction Ordinance 2001, every employer is under an obligation to deduct a specific amount of tax before making the payment of salary to his employee. 2. Payment of Profit Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment of profit to the receiver. 3. Payment of Rent Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment of rent to the receiver. 4. Payment of commission Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment of commission to the receiver. 5. Payment of Interest Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment of interest to the receiver. 6. Payment of dividend Under the Tax Deduction Ordinance 2001, every company is under an obligation to deduct a specific amount of tax before making the payment of dividend to all the shareholders of the company. 7. Payment of prize Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment of prize to the receiver. 8. Payment of winning Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment of winning to the receiver. 9. Payment of contracts Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment of contract to the receiver. 10. Payment of fees Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment of fees to the receiver. 11. On exchange of currency Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment after exchanging of currency to the receiver. 12. On supply of goods and services Under the Tax Deduction Ordinance 2001, every person is under an obligation to deduct a specific amount of tax before making the payment to the receiver on account of delivery of goods or provision of services. 4. Advantages of tax deduction at source Following are the advantages of tax deduction at source. Details are as under. 1. Elimination of tax evasion Deduction of tax at source eliminates the tax evasion (Chori) where the certain amount of tax is automatically deducted by the person who is responsible to make the payment. 2. Automatic payment In this way, the tax is automatically get paid to the government at the time of making the payment to the receiver. 3. Saves the time Deduction of tax at source saves the time of both the tax payer and the government. Where government does not wait till the year end to receive the tax. 4. A large sum Deduction of tax is a way through which a person makes his tax payment every month, due to which he does not have to deposit a large sum by the end of the tax year. 5. Standing in queue In this way, there is no headache of standing in queues in order to hand over the forms as it is all done by the companies. 5. When tax is deducted Under the provision of Tax Deduction Ordinance 2001, the amount of tax shall be deducted at the time when the payment shall be paid or credited to the account of receiver 6. Conclusion To conclude I can say that according to the rules lay down the Income Tax Ordinance 2001, all the person who are earning money from different source, are under an obligation to pay the tax accordingly, in order to collect tax the income tax has introduced a way of deduction of tax at source where the certain amount of tax is deducted by the person who is responsible to make the payment to the receiver. Q # 2: What is tax return? Who is bound to submit a tax return? Also highlight the consequences of it non-submission. 1. Introduction Under the Income Tax Ordinance 2001, a Performa provided by the tax authorities on which a tax payer mentions his income which has been earned by him during an income year. A tax payer is under an obligation to file a tax return within the prescribed time period. But Chief Commissioner Inland Revenue has an authority to may extend the date for submission of tax return. 2. Relevant provision Section 114 to 1149of Income Tax Ordinance 2001, deals with Tax return. 3. Definition of Tax Return A report that a person sends to the government about the money that he has earned and the taxes which has been paid by him in one year 4. Persons who are required to file tax return Following are the persons who are required to file tax return. Details are as under. 1. Every person Under the Income Tax Ordinance 2001, every person is under an obligation to file a tax return whose annual income is exceeding from the minimum value exempted from tax. 2. Every company Under the Income Tax Ordinance 2001, every company is under an obligation to file a tax return whose annual income is exceeding from the minimum value exempted from tax. 3. Every Welfare Institution Under the Income Tax Ordinance 2001, every welfare institution is under an obligation to file a tax return whose annual income is exceeding from the minimum value exempted from tax. 4. Person who has been charged Under the Income Tax Ordinance 2001, every person is under an obligation to file a tax return who fulfills the following conditions Owns immoveable property Own motor vehicle Subscriber for a telephone 5. Non-profit organization Under the Income Tax Ordinance 2001, every Non-Profit Organization is under an obligation to file a tax return which fulfills the following conditions Own Owns immoveable property less or more than 250 square yards Owns a flat covering the area of 2000 square feet Owns motor vehicle having capacity more than 1000 Cc Organization which has obtained the National Tax Number If the amount of bill is exceeding from One Million Rupees 5. Persons who are not required to file tax return Following are the persons who are not required to file tax return. Details are as under. 1. Widow Under the Income Tax Ordinance 2001, a widow is not under an obligation to file a tax return even her annual income is taxable. 2. Orphan Under the Income Tax Ordinance 2001, an orphan is not under an obligation until he attain the age of 25, to file a tax return even his annual income is taxable 3. Pensioner Under the Income Tax Ordinance 2001, a pensioner is not under an obligation to file a tax return even his annual income is taxable 4. Disabled Under the Income Tax Ordinance 2001, a disabled person is not under an obligation to file a tax return even his annual income is taxable 5. A tourist Under the Income Tax Ordinance 2001, a tourist who is not a citizen of Pakistan, is not under an obligation to file a tax return 6. Extension of time Rules related to extension of time if the time for tax return has been barred. Details are as under. 1. Who can apply for extension? Every person, every company or any welfare organization can apply for extension in time that is required to file tax return. 2. Who can give extension? Chief Commissioner Inland Revenue has an authority to extend the time period for filing the tax return 3. Form of application The form of application for extension in time period for filing the tax return shall be submitted in written. 4. Grounds for extension Following shall be the reasons of extension in time period. A mishap Sickness of taxpayer Absence from Pakistan 7. Penalty for not filing return Under the Income Tax Ordinance 2001, any person who fails to file the tax return of income, he can be imposed penalty by the Deputy Commissioner Inland Revenue. The amount of penalty will be equal to 1/10 of one percent of the tax payable for each day of default. 8. Conclusion To conclude I can say that at the end of income year, every person shows his income in a prescribed way which is earned by him in a one income year, and deposits a percentage of tax to the government, it is called tax return. Q # 3: What do you understand by the term income from business? Also discuss the procedure of imposing tax on income from business. 1. Introduction Business includes an activity which is carried out to make the profit and profit earned from business is known as an income which is received from the sale of products and a certain percentage of tax is levied upon such amount. There are some exemptions upon the profit earned from business in respect of tax. 2. Relevant provision Section 18 of Income Tax Ordinance 2001, deals with Taxation on income from business. 3. Definition of Business Business includes any trade, commerce and manufacturing of goods with a purpose of making profit within the permissible laws of country. 4. Essentials of business Following are the essentials business. Details are as under. 1. Profession Under the Income Tax Ordinance 2001, profession is an essential element of business. Profit earned from the profession is taxable 2. Vocation Under the Income Tax Ordinance 2001, vocation is an essential element of business. Profit earned from the vocation is taxable 3. Trade Under the Income Tax Ordinance 2001, trade is an essential element of business. Profit earned from the trade is taxable 4. Commerce Under the Income Tax Ordinance 2001, commerce is an essential element of business. Profit earned from the commerce is taxable 5. Manufacturing Under the Income Tax Ordinance 2001, manufacturing is an essential element of business. Profit earned from the sale of manufactured products is taxable 5. Taxability of Income from Business Following are the incomes which come under the category income from business. Details are as under. 1. Gains Under the Income Tax Ordinance 2001, gains comes under the category of income from the business, and it is taxable 2. Profit Under the Income Tax Ordinance 2001, profit earned by a person at any time ,comes under the category of income from the business, and it is taxable 3. Profit on debt Under the Income Tax Ordinance 2001, profit on debt comes under the category of income from the business, and it is taxable 4. Any benefit Under the Income Tax Ordinance 2001, any benefit received from the business comes under the category of income from the business, and it is taxable 5. Management fee Under the Income Tax Ordinance 2001, management fee received on the basis of business comes under the category of income from the business, and it is taxable 6. Income from property Under the Income Tax Ordinance 2001, income from property such as an amount of rent , amount of lease, comes under the category of income from the business, and it is taxable 7. Income from trade Under the Income Tax Ordinance 2001, income from tradecomes under the category of income from the business, and it is taxable 8. Income from profession Under the Income Tax Ordinance 2001, income from profession by using intellectual skills, comes under the category of income from the business, and it is taxable 9. Income from services Under the Income Tax Ordinance 2001, income from services by using physical skills, comes under the category of income from the business, and it is taxable 6. Incomes which are not taxable Following are the incomes which are not taxable. Details are as under. 1. Enrollment fee received by Bar Council Under the Income Tax Ordinance 2001, enrollment fee received by the Bar Council is such income which is free from tax. 2. Salary received by Examiner Under the Income Tax Ordinance 2001, salary received by the examiner is such income which is free from tax. 3. Income received after discontinuance of business Under the Income Tax Ordinance 2001, income received after discontinuance of business is such income which is free from tax. 4. Income of non-professional writer Under the Income Tax Ordinance 2001, income of non-professional writer is such income which is free from tax. 7. Conclusion To conclude I can say that income from business is such income which is taxable under the Income Tax Ordinance 2001, but there are some kind of incomes which are not taxable such as income received after discontinuance of business, salary received by the examiner etc. Tax on income from business is levied on the completion of income year. Q # 4: What do you understand by the term income from salary? Also discuss the procedure of imposing tax on income from salary and types of incomes from salary. 1. Introduction Income from salary is an income in the shape of remuneration which is received by a person for the services provided by him under the contract of employment. This amount of remuneration will be considered as income for the purposes of deduction of Income Tax only if there is an Employer and employee relationship between the person who is making the payment and the person who is receiving the payment. 2. Relevant provision Section 12 of Income Tax Ordinance 2001, deals with Taxation on income from salary. 3. Definition of Salary Salary means any amount which is received by the employee from any employment after performing work during a specific period of time. 4. Types of Incomes from salary Following are the types of incomes from salary. Details are as under. 1. Wages Under the Income Tax Ordinance 2001, wages given to the employee , comes under the category of salary and it is taxable 2. Pension Under the Income Tax Ordinance 2001, pension given to the employee , comes under the category of salary and it is taxable 3. Annuity Under the Income Tax Ordinance 2001, annuity given to the employee , comes under the category of salary and it is taxable 4. Gratuity Under the Income Tax Ordinance 2001, gratuity given to the employee , comes under the category of salary and it is taxable 5. Profit Under the Income Tax Ordinance 2001, annual profit of company given to the employees ,comes under the category of salary and it is taxable 6. Provident fund Under the Income Tax Ordinance 2001, provident fund given to the employee , comes under the category of salary and it is taxable 7. Leave encashment Under the Income Tax Ordinance 2001, leave encashment given to the employee , comes under the category of salary and it is taxable 5. Taxability of Income from salary Following are the characteristics of taxable salary. 1. Relationship Under the Income Tax Ordinance 2001, for imposing of tax on salary, there should be a relationship between employer and employee 2. Salary of present, past and future Under the Income Tax Ordinance 2001, for imposing of tax on salary, the salary should of present, past or future salary 6. Incomes which are not taxable Following are the incomes which are not taxable. Details are as under. 1. Medical benefits Under the Income Tax Ordinance 2001, medical benefit received by the employee is exempted from imposition of tax. 2. Bonus /Incentive Under the Income Tax Ordinance 2001, bonus /incentive received by the employee is exempted from imposition of tax. 3. Travelling allowance Under the Income Tax Ordinance 2001, travelling allowance received by the employee is exempted from imposition of tax. 4. Overtime allowance Under the Income Tax Ordinance 2001, travelling allowance received by the employee is exempted from imposition of tax. 5. House rent allowance Under the Income Tax Ordinance 2001, house rent allowance received by the employee is exempted from imposition of tax. 6. Retirement allowance Under the Income Tax Ordinance 2001, retirement allowance received by the employee is exempted from imposition of tax. 7. Tax Year In order to deduct the tax from salary income the financial year begins from July 01 to June 30. Tax year is designated the year in which financial year ends. Application of laws and calculations are based on Tax year. Example Salary earned from July 01, 2017 to June 30, 2018 will be taxed under laws applicable for Tax Year 2018. 8. Differences between CTC, Gross and Net Salary Following are the differences between CTC, Gross and Net Salary. 1. CTC CTC means Cost To Company. It is a term, which tells the total cost that a company would expense on an employee in a year. 2. Gross Salary The gross salary that an employee receives before deduction of income tax and other taxes is known Gross Salary. 3. Net Salary The Net Salary that an employee receives after deduction of incomes tax and other taxes is known as Net Salary. 9. Conclusion To conclude I can say that income from salary is such income which is taxable under the Income Tax Ordinance 2001, but there are some kind of incomes which are not taxable such as medical benefits, travelling allowance, house rent allowance and retirement etc. Tax on income from salary is levied on the completion of income year or monthly. Q # 5: Discuss upon incomes from other sources, are these taxable? If so under what circumstances. 1. Introduction Under Income Tax Ordinance 2001, income from other sources is such income which does not include income from salary, business, property and capital gains. Any income that is not covered in the other four heads of income is taxable under income from other sources, because it is known as residuary head of income.. 2. Relevant provision Section 39, 40 and 41 of Income Tax Ordinance 2001, deals with Taxation on income from other sources. 3. Definition Any income that is not covered in the other four heads of income is known as income from other sources and it is taxable. 4. Incomes from other sources Following are the incomes from other sources. Details are as under. 1. Dividend Under the Income Tax Ordinance 2001, dividend is a profit of shareholders of a company, it comes under the category of incomes from other sources and it is taxable. 2. Building lease Under the Income Tax Ordinance 2001, income received from building lease comes under the category of income from other sources and it is taxable. 3. Ground rent Under the Income Tax Ordinance 2001, ground rent received by the owner of the land comes under the category of income from other sources and it is taxable. 4. Building rent Under the Income Tax Ordinance 2001, income received from building rent comes under the category of income from other sources and it is taxable. 5. Royalty Under the Income Tax Ordinance 2001, royalty paid to any painter comes under the category of income from other sources and it is taxable. 6. Pension/Annuity Under the Income Tax Ordinance 2001, pension/annuity received by the employee comes under the category of income from other sources and it is taxable. 7. Income from Prize bond Under the Income Tax Ordinance 2001, income received from prize bond comes under the category of income from other sources and it is taxable. 8. Income from lottery Under the Income Tax Ordinance 2001, income received from lottery comes under the category of income from other sources and it is taxable. 9. Profit on debt Under the Income Tax Ordinance 2001, profit received on debt comes under the category of income from other sources and it is taxable. 10. Consideration Under the Income Tax Ordinance 2001, any amount received as consideration comes under the category of income from other sources and it is taxable. 5. Incomes from other sources which are not taxable Following are the incomes from other sources which are not taxable. 1. Enrollment fee Under the Income Tax Ordinance 2001, Enrollment fee is not taxable but it is included in the income from other sources. 2. Examination fee Under the Income Tax Ordinance 2001, Examination fee is not taxable but it is included in the income from other sources. 3. Director’s fee Under the Income Tax Ordinance 2001, Director’s fee is not taxable but it is included in the income from other sources. 4. Interests on bank deposits Under the Income Tax Ordinance 2001, Interest on bank deposits is not taxable but it is included in the income from other sources. 5. Interest on Government Under the Income Tax Ordinance 2001, Interest on Government is not taxable but it is included in the income from other sources. 6. Tips Under the Income Tax Ordinance 2001, Tips received by a person is not taxable but it is included in the income from other sources 6. Tax Year In order to deduct the tax from salary income the financial year begins from July 01 to June 30. Tax year is designated the year in which financial year ends. Application of laws and calculations are based on Tax year. Example Salary earned from July 01, 2017 to June 30, 2018 will be taxed under laws applicable for Tax Year 2018. 7. Deduction admissible Following are the deductions which are admissible U/s 40. 1. Amount of Zakat 2. All expenditures 3. Depreciation 4. Repair and maintenance charges 5. Insurance charges 8. Conclusion To conclude I can say that income from other sources is such income which is taxable under the Income Tax Ordinance 2001, if any income which is not included in the head of salary, business, property or capital gain, all of other incomes shall be included in the head of income from other sources and all of these are taxable under the income tax ordinance 2001.. Q # 6: Discuss in detail the procedure to be followed for filing an appeal before commissioner (Appeals) 1. Introduction Under Income Tax Ordinance 2001, If any person who is not satisfied with the order passed by a Excise Officer who is lower in rank than a Commissioner (appeal), he may file an appeal before the Commissioner (Appeals) within three months from the issuance of such order. Appeal cannot be made against each and every order passed under this act. 2. Relevant provision Section 128 and 129 of Income Tax Ordinance 2001, deals with procedure of filing an appeal before commissioner (Appeal). 3. Definition of appeal Submission of an application by the aggrieved party before the higher court for the judicial review of the decision of the lower court is called appeal. 4. Persons who can file an appeal Following are the persons who can file an appeal before the commissioner (Appeals). Details are as under. 1. Taxpayer Under the Income Tax Ordinance 2001, a taxpayer or an aggrieved person can file an appeal before the commissioner (Appeals) if he is not satisfied with the decision made by the excise officer 2. Income tax department Under the Income Tax Ordinance 2001, income tax department can file an appeal before the commissioner (Appeals) if department is not satisfied with the decision made by the excise officer 5. Procedure after filing of appeal After filing an appeal, the following procedure is followed. 1. Fixation of Date Under Income Tax Ordinance 2001, The Commissioner Inland Revenue (Appeals) shall fix a date for hearing. 2. Intimation to taxpayer Under Income Tax Ordinance 2001, after fixation of date for hearing, The Commissioner Inland Revenue (Appeals) shall send intimation to the taxpayer. 3. Intimation to commissioner inland revenue Under Income Tax Ordinance 2001, after intimation to the taxpayer, The Commissioner Inland Revenue (Appeals) shall send intimation to the Commissioner Inland Revenue under whose order the appeal has been made. 4. Initiation of inquiry Under Income Tax Ordinance 2001, after receiving intimation, The Commissioner Inland Revenue shall initiate an inquiry. 5. Hearing Under Income Tax Ordinance 2001, after completion of an inquiry, , The Commissioner Inland Revenue shall give an equal opportunity to both parties to explain their point of view. 6. Nature of decision Under the Income Tax Ordinance 2001, the decision of The Commissioner Inland Revenue (Appeals) is an appealable. 7. Time limitation for filing of appeal Under the Income Tax Ordinance 2001, the Taxpayer or Income Department can file an appeal within the 30 days from the receipt of appealable orders. 8. Extension in time Under the Income Tax Ordinance 2001, The Commissioner Inland Revenue (Appeals) has discretionary powers in respect of extension in time for filing an appeal. 9. Appeal to the Appellate Tribunal Inland Revenue Under the Income Tax Ordinance 2001, an appeal can be filed against the order of The Commissioner Inland Revenue (Appeals) by the taxpayer or Income Department before the Appellate Tribunal Inland Revenue. 10.Powers of Commissioner Inland Revenue appeal Following are the powers of Commissioner Inland Revenue Appeal in respect of appeal. 1.Declaring the assessment as correct Under the Income Tax Ordinance 2001, Commissioner Inland Revenue Appeal has an authority to declare the assessment as correct. 2.Declaring the assessment as incorrect Under the Income Tax Ordinance 2001, Commissioner Inland Revenue Appeal has an authority to declare the assessment as incorrect. 3.Reduction of assessment Under the Income Tax Ordinance 2001, Commissioner Inland Revenue Appeal has an authority to reduce the assessment. 4.Increasing of assessment Under the Income Tax Ordinance 2001, Commissioner Inland Revenue Appeal has an authority to increase the assessment. 5.Imposition of penalty Under the Income Tax Ordinance 2001, Commissioner Inland Revenue Appeal has an authority to impose a penalty on the taxpayer or on the Income tax department. 6.Cancellation of penalty Under the Income Tax Ordinance 2001, Commissioner Inland Revenue Appeal has an authority to cancel a penalty on the taxpayer or on the Income tax department. 11.Conclusion To conclude I can say that any taxpayer or Income tax department can file an appeal before the Commissioner Inland Revenue. An appeal can be filed against only those orders which have been mentioned under the ordinance. Aggrieved party can file an appeal within the 30 days from the receipt of appealable orders. Q # 1: What are the different modes of recovery of arrears of sales tax against the defaulter of sales tax under Sale Tax Act 1990? 1. Introduction Under Sales Tax Act 1990, any company that sells goods or services, is under an obligation to pay sales tax on those goods and services, but if a company gets failed to pay sales tax within the prescribed period of time, in this case the tax collecting authority can initiate the proceedings against the defaulter company in order to recover the due amount of tax. 2. Relevant provision Section 2 (2A) and 48 of Sales Tax Act 1990, deals with recovery of arrears of sales tax. 3. Definition of Arrears A certain due amount of tax that has not been paid by the company within the prescribed period of time is known as arrears. 4. Definition of Defaulter Any company, person, director or partner of a company or guarantors or successors of a company who gets failed to pay sales tax within the prescribed period of time, is known as defaulter. 5. Authorities who can recover arrears Following are the authorities who can recover arrears from defaulters. Details are as under. 1. Board of Revenue Under Sales Tax Act 1990, Board of revenue is such authority that can recover the arrears from the defaulter. 2. Authorized officer of Inland Revenue Under Sales Tax Act 1990, any officer of Inland Revenue is such authority that can recover the arrears from the defaulter. 6. Modes of recovery of Sales Tax Following are the modes of recovery of Sales Tax. Details are as under. 1. Deduction of amount Under the Sales Tax Act 1990, Board of Revenue or Any officer of Inland Revenue can deduct the amount from such amount which is under the control of any officer of Income Tax, Customs or Central Excise Department. 2. Stoppage of delivery of goods Under the Sales Tax Act 1990, Board of Revenue or Any Officer of Inland Revenue can stop the delivery of goods until the amount of tax is paid or recovered in full. 3. Possession of goods Under the Sales Tax Act 1990, Board of Revenue or Any Officer of Inland Revenue can take the possession of goods from the business premises until the amount of tax is paid or recovered in full. 4. Seizure of business premises Under the Sales Tax Act 1990, Board of Revenue or Any Officer of Inland Revenue can seize the business premises until the amount of tax is paid or recovered in full. 5. Sale of business premises Under the Sales Tax Act 1990, Board of Revenue or Any Officer of Inland Revenue can sale moveable or immoveable property of the company until the amount of tax is paid or recovered in full. 6. Attachment of accounts Under the Sales Tax Act 1990, Board of Revenue or Any Officer of Inland Revenue can attach the bank accounts of the company until the amount of tax is paid or recovered in full. 7. Initiation of judicial proceedings Under the Sales Tax Act 1990, Board of Revenue or Any Officer of Inland Revenue can initiate judicial proceedings in order to recover the amount of tax from the defaulter. 7. Powers of Inland Revenue Officer for recovery of arrears Following are the powers of Inland Revenue Officer in respect of recovery of arrears from the defaulter. 1. Declaring the Arrears as correct Under the Sales Tax Act 1990, Inland Revenue Officer has an authority to declare the due amount of arrears of sales tax as correct. 2. Declaring the Arrears as incorrect Under the Sales Tax Act 1990, Inland Revenue Officer has an authority to declare the due amount of arrears of sales tax as incorrect. 3. Reduction of Sales Tax Under the Sales Tax Act 1990, Inland Revenue Officer has an authority to reduce the due amount of arrears of sales tax. 4. Increasing of Sales Tax Under the Sales Tax Act 1990, Inland Revenue Officer has an authority to increase the due amount of sales tax. 5. Imposition of penalty Under the Sales Tax Act 1990, Inland Revenue Officer has an authority to impose a penalty on the defaulter. 6. Cancellation of penalty Under the Sales Tax Act 1990, Inland Revenue Officer has an authority to cancel a penalty on the defaulter 8. Conclusion To conclude I can say that if any company that gets failed to pay the due amount of Sales Tax within the prescribed period of time is known as defaulter, in this case the Board of Revenue or Inland Revenue Officer has an authority to recover the arrears from the defaulter for what different methods have been provided under the Sales Tax Act 1990. Q # 2: Elaborate the law relating to appointment, powers and functions of various officers under Sale Tax Act 1990? 1. Introduction Under Sales Tax Act 1990, in order to collect and recovery of arrears from the taxpayer, the provincial government appoints a many officers who are under an obligation to collect the sales tax from the taxpayer on the behalf of their department and deposit it in government account. All the officers are entitled to take legal action against the non-taxpayers. 2. Relevant provision Section 30 of Sales Tax Act 1990, deals with about the appointment of authorities and their powers. 3. Definition of Authority Authority refers to power which is exercised by a an officer on the basis of his position for what he has been appointed. 4. Appointment of officers Following is the law relating to the appointment of the officers under the Sales Tax Act 1990. 1. Chief commissioner of Inland Revenue Under the Sales Tax Act 1990, the appointment of the Chief Commissioner Inland Revenue is notified in the official gazette 2. Commissioner of Inland Revenue Under the Sales Tax Act 1990, the appointment of the Commissioner Inland Revenue is notified in the official gazette 3. Commissioner of Inland Revenue (Appeals) Under the Sales Tax Act 1990, the appointment of the Commissioner Inland Revenue (Appeals) is notified in the official gazette 4. Additional commissioner of Inland Revenue Under the Sales Tax Act 1990, the appointment of the Additional Commissioner Inland Revenue is notified in the official gazette 5. Deputy commissioner of Inland Revenue Under the Sales Tax Act 1990, the appointment of the Deputy Commissioner Inland Revenue is notified in the official gazette 6. Assistant commissioner of Inland Revenue Under the Sales Tax Act 1990, the appointment of the Assistant Commissioner Inland Revenue is notified in the official gazette 7. Superintendent of Inland Revenue Under the Sales Tax Act 1990, the appointment of the Superintendent of Inland Revenue is notified in the official gazette 8. Senior Auditor of Inland Revenue Under the Sales Tax Act 1990, the appointment of the Senior Auditor of Inland Revenue is notified in the official gazette 9. Officer of Inland Revenue Under the Sales Tax Act 1990, the appointment any officer of Inland Revenue is notified in the official gazette 5. Powers and Functions of Officers Following are the powers and Functions of Officers under Sales Tax Act 1990. 1.Collection of tax Under the Sales Tax Act 1990, all the officers of income tax department have an authority to collect the tax from taxpayers. 2.Recovery of arrears Under the Sales Tax Act 1990, all the officers of income tax department have an authority to recover the arrears from taxpayers. 3.Declaring the assessment as correct Under the Sales Tax Act 1990, all the officers of income tax department have an authority to declare the assessment as correct. 4.Declaring the assessment as incorrect Under the Sales Tax Act 1990, all the officers of income tax department have an authority to declare the assessment as incorrect. 5.Reduction of assessment Under the Sales Tax Act 1990, all the officers of income tax department have an authority to reduce the assessment. 6.Increasing of assessment Under the Sales Tax Act 1990, all the officers of income tax department have an authority to increase the assessment. 7.Imposition of penalty Under the Sales Tax Act 1990, all the officers of income tax department have an authority to impose a penalty on the taxpayer. 8.Cancellation of penalty Under the Sales Tax Act 1990, all the officers of income tax department have an authority to cancel a penalty on the taxpayer or on the Income tax department. 6. Delegation of powers Under the Sales Tax Act 1990, Chief Commissioner Inland Revenue after issuance of notification in the official may authorize any sub-ordinate officer to exercise his powers within any specified area. Under this section, any officer to whom such powers are delegated shall not further delegate such powers. 7. Conclusion To conclude I can say that under the Sales Tax Act 1990, there are many officers who are appointed after notification in the official gazette. All of the officers are appointed for collection of tax or recovery of arrears from the taxpayers. All of they have been authorized to take legal actions against the non-taxpayers. Q # 3: Explain the procedure of making assessment of sales tax. Also state the law relating to recovery of tax which has not been levied short levied or erroneously refunded. 1. Introduction Under Sales Tax Act 1990, assessment of sales tax is made at the time when a taxpayer does not pay enough sales tax actually payable, in this case board makes an assessment for imposition of tax against sale of certain goods and services. After assessment, a certain value of amount shall be levied upon the taxpayer to pay the levied amount within the prescribed period of time. 2. Relevant provision Section 33 and 34 of Sales Tax Act 1990, deals with procedure of making assessment of sales tax. 3. Definition of Assessment Assessment is a procedure relating to the imposition and collection of a tax against sale of certain goods and services. 4. Definition of Sales Tax A sales tax is a tax which is paid to the government against the sales of certain goods and services. 5. Procedure of making Assessment of Sales Tax Following is the procedure of making an assessment of sales tax under Sales Tax Act 1990. 1. Initiation of Assessment Under the Sales Tax Act 1990, if an officer Inland Revenue thinks that a person who is required to file a tax return and pays an amount which is less than the actual amount payable, in this case, an officer of Inland Revenue shall initiate assessment of sales tax against the sale of goods or services. 2. Show cause notice Under the Sales Tax Act 1990, where a person who is required to file a tax return and pays an amount which is less than the actual amount payable, in this case, an officer of Inland Revenue shall issue a show cause notice to such person. 3. Imposition of penalty Under the Sales Tax Act 1990, where a person who is required to file a tax return and pays an amount which is less than the actual amount payable, in this case, an officer of Inland Revenue shall impose a penalty to such person. 6. Reasons of sales tax assessment Following are the reasons of sales tax assessment. Details are as under. 1. Past date of business If a person who has registered himself as a taxpayer and put a past date of his business, it can be a reason of sales tax assessment. 2. Expiry of due date If a person who has registered himself as taxpayer and has not filed the tax return even after expiry of due date, it can be a reason of sales tax assessment. 3. Less tax paid If a person who has registered himself as taxpayer and has paid a less than the amount of tax actually payable, it can be a reason of sales tax assessment. 4. Other reason There are some other reasons due to them an assessment of sales tax can be initiated. 7. Recovery of Erroneously Refund of tax Where the Commissioner finds that tax has mistakenly been refunded to a person the commissioner shall take following steps. (1) Issuance of order Commissioner Inland Revenue shall send an order to the person to whom the amount of tax has mistaken been refunded. (2) Collection of tax After issuance an order to the person, Commissioner Inland Revenue shall send an order to a person to whom the amount of tax has mistaken been refunded for depositing an amount received by him in the government accounts. 8. Tax Year In order to deduct the tax from income the financial year begins from July 01 to June 30. Tax year is designated the year in which financial year ends. Application of laws and calculations are based on Tax year. Example Income earned from July 01, 2017 to June 30, 2018 will be taxed under laws applicable for Tax Year 2018. 9. Conclusion To conclude I can say that under Sales Tax Act 1990, if a person who deposits an amount of tax which is not enough, in this case the officer Inland Revenue shall make an assessment of the tax against the sale of goods and services, after such assessment a certain amount of tax shall be imposed on the taxpayer.
