Dear Seniors,
The factory inspector visited our company and asked us to apply for factory Licence. we were operating under licence from Shops & Establishment, immediately we applied for it and is in process,I am yet to get licence. After plans were approved, we were told to pay fees. the inspector levied fees for current year Rs. 18000/- and also charged 100% late fees. and for next year ie 2017 he charged fees of Rs. 18000/- ( as per schedule of payment of fees) and also late fees of Rs. 18000/-.The coverage began from 1/01/2016.
My question is, are we suppose to pay late fees for current and also without getting licence till date are we suppose to pay late fees for next year. (plans are approved in November 2016)
Please advise.
From India, Chicalim
2The factory inspector visited our company and asked us to apply for factory Licence. we were operating under licence from Shops & Establishment, immediately we applied for it and is in process,I am yet to get licence. After plans were approved, we were told to pay fees. the inspector levied fees for current year Rs. 18000/- and also charged 100% late fees. and for next year ie 2017 he charged fees of Rs. 18000/- ( as per schedule of payment of fees) and also late fees of Rs. 18000/-.The coverage began from 1/01/2016.
My question is, are we suppose to pay late fees for current and also without getting licence till date are we suppose to pay late fees for next year. (plans are approved in November 2016)
Please advise.
From India, Chicalim
Dear Laxman k,
Please note that the imposition of late fee is specified in factories rules of the State Concerned. In most of the states in north, the late fee is 25%. Also please note that same rate of late fee is applicable for even one day's delay. The late fee if it is 100% in your state, it is rightly charged even without obtaining the license. The Inspector is empowered to even prosecute you in the court of law for running your factory / establishment without obtaining valid license where provisions of fine up to Rs.1.00 Lakh and imprisonment up to 6 months is there.
The validity of the license is granted from January 1st to December, 31st but its renewal falls due by October.
P K Sharma
From India, Delhi
Please note that the imposition of late fee is specified in factories rules of the State Concerned. In most of the states in north, the late fee is 25%. Also please note that same rate of late fee is applicable for even one day's delay. The late fee if it is 100% in your state, it is rightly charged even without obtaining the license. The Inspector is empowered to even prosecute you in the court of law for running your factory / establishment without obtaining valid license where provisions of fine up to Rs.1.00 Lakh and imprisonment up to 6 months is there.
The validity of the license is granted from January 1st to December, 31st but its renewal falls due by October.
P K Sharma
From India, Delhi
Dear Laxman,
You haven't mentioned the type of establishment in respect of which query is raised. The Factory Act,1948 is a Central Act and all the States have been empowered to make their own Rules suiting their requirement. In normal conditions the factory means:-
1. Where Ten or more workers are employed during preceeding twelve months and manufacturing process is carried on with the aid of power or
2.Where Twenty or more workers are employed during preceeding twelve months and manufacturing process is carried on with or without the aid of power.
Based on the above parameters, you can calculate the licence fee, which is based on numbers of persons employed and maximum quantity of horse power (HP) installed in your establishment. I believe that your query relates to the State of Goa. Rs.1800/- has been fixed for the factory where 500 to 1000 persons are employed with installation of 10 Horse power used. I agree with Sh Sharma that the late fee is specified in the Factories rules of the State concerned. In most of the Northern States, the late fee is 25% of the Licence Fee. You, therefore, need to check the Goa factory Rules. If the Act is not made applicable to your factory by ignorance then there is no point in agitating the issue because prosecution for non-compliance with the statutory provisions are much more expensive and bothersome. My reply in reference to your query is as under:-
1. As regards the late fine for current year is concerned, the licence can be renewed only on payment of late fee as the same was due in October, 2016 (Please check the State Factory Rules).
2.Once you have applied for the renewal, you are absolved of the responsibility of the compliance.The licence issued under the Act remains valid from January to December of the year.
Hope the above clarifies your doubts.
BS Kalsi
Member Since August, 2011
From India, Mumbai
You haven't mentioned the type of establishment in respect of which query is raised. The Factory Act,1948 is a Central Act and all the States have been empowered to make their own Rules suiting their requirement. In normal conditions the factory means:-
1. Where Ten or more workers are employed during preceeding twelve months and manufacturing process is carried on with the aid of power or
2.Where Twenty or more workers are employed during preceeding twelve months and manufacturing process is carried on with or without the aid of power.
Based on the above parameters, you can calculate the licence fee, which is based on numbers of persons employed and maximum quantity of horse power (HP) installed in your establishment. I believe that your query relates to the State of Goa. Rs.1800/- has been fixed for the factory where 500 to 1000 persons are employed with installation of 10 Horse power used. I agree with Sh Sharma that the late fee is specified in the Factories rules of the State concerned. In most of the Northern States, the late fee is 25% of the Licence Fee. You, therefore, need to check the Goa factory Rules. If the Act is not made applicable to your factory by ignorance then there is no point in agitating the issue because prosecution for non-compliance with the statutory provisions are much more expensive and bothersome. My reply in reference to your query is as under:-
1. As regards the late fine for current year is concerned, the licence can be renewed only on payment of late fee as the same was due in October, 2016 (Please check the State Factory Rules).
2.Once you have applied for the renewal, you are absolved of the responsibility of the compliance.The licence issued under the Act remains valid from January to December of the year.
Hope the above clarifies your doubts.
BS Kalsi
Member Since August, 2011
From India, Mumbai
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201901294424Tra de Circular No. 6T of 2019- Exemption from payment of late fee us 6 (3) (1).pdf