(1) Where an establishment 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-section (1A), (1B) and (1C).
(1A) In the first five 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, 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 with out applying the provisions of section 15.
(1B) For the sixth and seventh 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 subject other 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 1[Fourth 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 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 1[Fourth
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 year.
(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 in relation to any other establishment.
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 purpose of sub-section (1A), (1B) 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 an 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.]
(2) The provisions of [sub-section
(1), (1A), (1B) and (1C)] shall, so far as may be, apply to new departments or
undertakings or branches set up by existing establishments:
Provided that if an employer in relation to an existing
establishment consisting of different (departments or undertakings or branches
(whether or not in the same industry) set up at different periods has, before
the 29th May, 1965, been paying bonus to the employees of all; such
departments or undertakings or branches, irrespective of the date on which such
departments or undertakings or branches were set up, on the basis of the
consolidated profits computed in respect of all such departments or undertaking
or branches, then, such employer shall be liable to pay bonus in accordance
with the provisions of this Act to the employees of all such departments or
undertaking or branches (whether set up before or after that date) on the basis
of the consolidated profits computed as aforesaid.