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  1. 1. WORKER’S WELFARE FUND ORDINANCE, 1971 BY SYED MUHAMMAD IJAZ, FCA, LL.B. M Yousaf Adil Saleem & Co. a member firm of Deloitte Touché Tohmatsu
  2. 2. TERMS DEFINED UNDER SECTION 2 b) Employer c) Fund d) Governing body e) Omitted f) Industrial Undertaking ff) Ordinance g) Prescribed h) Secretary ha) Taxation Officer i) Total Income j) Worker
  3. 3. THE MAGIC TERMS in details
  4. 4. Industrial Establishment i. Any concern owning or managing a factory, workshop or other establishment in which articles are produced, adapted or manufactured with the aid of electrical, mechanical, thermal, nuclear or any other form of energy transmitted mechanically and not generated by human or animal agency; ii. Any concern working a mine or quarry or natural gas or oilfield; iii. Any concern running a public transport service iv. Any concern engaged in the carriage of men and goods by inland mechanically propelled vessels; Iva) Any establishment, to which the West Pakistan Shops and Establishment Ordinance, 1969 (W.P. Ordinance No. VIII of 1969), for the time being applies; v. Any concern engaged in the growing of tea, coffee, rubber or cinchona; and vi. Any other concern or establishment which the federal government may, by notification in the Official Gazette, declare to be an industrial establishment for the purposes of this ordinance, But does not include any concern or establishment which is owned by government, or by corporation established by the Government or by a Corporation the majority of the shares of which is owned by government.
  5. 5. Total Income i. Where return of income is required to be filed under this Ordinance, the profit (before taxation or provision for taxation) as per accounts or the declared income as per the return of Income, which ever is higher; and ii. Where return of Income is not required to be filed, the profit (before taxation or provision for taxation) as per accounts or four percent of the receipt as per the statement filed under section 115 of the Ordinance, whichever is higher
  6. 6. The Charging Provisions- Section 4 2% of total income by every industrial establishment with total income greater than Rs. 500,000/- To be paid to taxation officer having jurisdiction over industrial establishment Payable on or before the date of filing of returns of income with proof of payment Taxation officer shall determine the amount of WWF by order in writing Any amount payable or refundable due to such order is adjustable under subsection 1 Any amount determined in access of what was required to be paid as a result of Appeal shall be refunded Provisions of the Income Tax Ordinance for mode and time of recovery of the Income tax leviable under the Ordinance shall mutatis mutandis apply to recovery of amount due under subsection 1 Appeals against the order of taxation officers can be filed before the Commissioner of appeals appointed under the Ordinance
  7. 7. Further amount -section 4A Federal Govt. by notification in official gazette and by appointment of one or more committees on recommendation can in addition to the amount payable under section 4 for any year of account can determine such amount as may be recommended by such committees Committees have to examine individually the financial reasons and circumstances for each industrial undertaking Can call such information as they deem necessary If no such information is furnished by the industrial undertaking the committee can recommend of the basis of available information
  8. 8. Liability to be discharged by certain persons- Section 5 Person who is liable to pay Income tax in respect of the Income relatable to such industrial establishment U/s 13 Federal Government can reduce or remit the amount due through a notification in Official Gazette
  9. 9. Other than that Purpose of the ordinance is defined u/s 6 Constitution of governing body u/s 7 Appointment of Secretary and employees of the fund u/s 8 Governing body is authorized to lay down procedures etc u/s 9 Functions of the Governing body are defined u/s 10 Books and records for the governing body are defined u/s 11 Chapter III-A (section 11A to 11F) defines the constitution of Board by the governing body and their functions etc functions and procedures of board are defined in WWF rules 1976 Chapter IV deals with delegation of powers and remission/reduction of Due Amount