India
10 Chapter Labor
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1 Chapter Introduction
1.1 Draft budget for Economy, Tax System in 2014 and 2015
2 Chapter Basic Knowledge
3 Chapter Economic Environment
4 Chapter Incorporation
5 Chapter M&A
6 Chapter Accounting
7 Chapter Tax System
8 Chapter International Tax
9 Chapter Transfer Pricing Taxation
10 Chapter Labor
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India- Japan Relations
The friendship between India and Japan has a long history rooted in spiritual affinity and strong cultural and civilizational ties. India’s earliest documented direct contact with Japan was with the Todaiji Temple in Nara, where the consecration or eye-opening of the towering statue of Lord Buddha was performed by an Indian monk, Bodhisena, in 752 AD. In contemporary times, among prominent Indians associated with Japan were Swami Vivekananda, Gurudev Rabindranath Tagore, JRD Tata, Netaji Subhash Chandra Bose and Judge Radha Binod Pal. The Japan-India Association was set up in 1903, and is today the oldest international friendship body in Japan.
Throughout the various phases of history since contacts between India and Japan began some 1400 years ago, the two countries have never been adversaries. Bilateral ties have been singularly free of any kind of dispute – ideological, cultural or territorial. Post the Second World War, India did not attend the San Francisco Conference, but decided to conclude a separate peace treaty with Japan in 1952 after its sovereignty was fully restored. The sole dissenting voice of Judge Radha Binod Pal at the War Crimes Tribunal struck a deep chord among the Japanese public that continues to reverberate to this day.
Exchange between Japan and India is said to have begun in the 6th century when Buddhism was introduced to Japan. Indian culture, filtered through Buddhism, has had a great impact on Japanese culture, and this is the source of the Japanese people's sense of closeness to India.
After World War II, in 1949, Indian Prime Minister Jawaharlal Nehru donated an Indian elephant to the Ueno Zoo in Tokyo. This brought a ray of light into the lives of the Japanese people who still had not recovered from defeat in the war. Japan and India signed a peace treaty and established diplomatic relations on 28th April, 1952. This treaty was one of the first peace treaties Japan signed after the World War II.
Ever since the establishment of diplomatic relations, the two countries have enjoyed cordial relations. In the post World War II period, India's iron ore helped a great deal Japan's recovery from the devastation. Following Japanese Prime Minister Nobusuke Kishi's visit to India in 1957, Japan started providing yen loans to India in 1958, as the first yen loan aid extended by Japanese government. Since 1986, Japan has become India's largest aid donor, and remains so.
The modern nation States have carried on the positive legacy of the old association which has been strengthened by shared values of belief in democracy, individual freedom and the rule of law. Over the years, the two countries have built upon these values and created a partnership based on both principle and pragmatism. Today, India is the largest democracy in Asia and Japan the most prosperous.
Recent Relations
Prime Minister Yoshiro Mori’s visit to India in August 2000 provided the momentum to strengthen the Japan-India relationship. Mr. Mori and Prime Minister Atal Bihari Vajpayee decided the establishment of "Global Partnership between Japan and India". Since Prime Minister Junichiro Koizumi’s visit to India in April 2005, Japan-India annual summit meetings have been held in respective capitals. When Prime Minister Manmohan Singh visited Japan in December 2006, Japan-India relationship was elevated the "Global and Strategic Partnership". In September 2014, Prime Minister Modi paid an official visit to Japan and had a summit meeting with Prime Minister Shinzo Abe. They agreed that Japan-India relationship was upgraded to “Special Strategic and Global Partnership.” In December 2015, Prime Minister Abe paid an official visit to India and had a summit meeting with Prime Minister Narendra Modi. The two Prime Ministers resolved to transform the Japan-India Special Strategic and Global Partnership into a deep, broad-based and action-oriented partnership, which reflects a broad convergence of their long-term political, economic and strategic goals. They announced “Japan and India Vision 2025 Special Strategic and Global Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World” a joint statement that would serve as a guide post for the “new era in Japan-India relations.”
High Level Visits
In addition to the annual summit meetings, annual Strategic Dialogue at Foreign Minister-level has been held in respective capitals since 2007. The launch of Ministerial Level Economic Dialogue was agreed during Prime Minister Singh’s visit to Japan in October 2010.
Cooperation in Security Fields
During Prime Minister Singh’s visit to Japan in October 2008, two leaders issued "the Joint Declaration on Security Cooperation between Japan and India". Furthermore, to advance security cooperation based on the Joint Declaration, Action Plan was issued during Prime Minister Hatoyama’s visit to India in December 2009. There are also various frameworks of security dialogue between Japan and India. The Comprehensive Security Dialogue at the level of Joint Secretary / Director General level was set up in 2001 and eight rounds of dialogue have been conducted since then. Annual Subcabinet / Senior Officials 2+2 dialogue, which was agreed to establish in 2009, was held in New Delhi in July 2010.
Maritime Self Defense Force (SDF) joined in the "Malabar 09" which was co-hosted by U.S. and India in April 2009. Defense Minister of India, Mr. Antony visited Japan in November 2011 to hold the Japan-India Defense Ministerial meeting with Mr. Ichikawa, Japanese Defense Minister. During the meeting, the two Ministers decided to carry out bilateral exercise between the Japan Maritime Self-Defense Force and the Indian Navy. At the annual summit in December 2011, Prime Minister Noda and Prime Minister Singh affirmed that they would expand cooperation in the area of maritime security, including safety and freedom of navigation.
Between the coast guards, combined exercises on anti-piracy, search & rescue etc. have been conducted since 2000. The both coast guards conducted joint exercise at Chennai in January 2012. Heads of coast guards of both countries visit each other almost every year. The two coast guards exchanged a Memorandum on Cooperation at the occasion of commandant Ishikawa's visit to India in November, 2006.
Economic Relations
The Japan-India Comprehensive Economic Partnership Agreement (CEPA) took effect in August 2011, which will eliminate about 94% of the tariffs between Japan and India within 10 years. Agreement between Japan and India on Social Security was signed in November 2012.
India has been the largest recipient of Japanese ODA Loan for the past several years. Delhi Metro is one of the most successful examples of Japanese cooperation through the utilization of ODA. The Dedicated Freight Corridor (DFC) and the Delhi-Mumbai Industrial Corridor (DMIC) are two symbolic projects of cooperation between Japan and India. Prime Minister Abe reaffirmed that Japan would continue its ODA at a substantial level to encourage India’s efforts towards social and economic development during his visit to India in January 2014.
Political Relations
In the first decade after diplomatic ties were established, several high level exchanges took place, including Japanese Prime Minister Nobusuke Kishi’s visit to India in 1957, Prime Minister Nehru’s return visit to Tokyo the same year (with a gift of two elephants) and President Rajendra Prasad’s visit in 1958. The visit of their Highnesses, the then Japanese Crown Prince Akihito and Crown Princess Michiko in 1960 took the relations to a new level.
The momentum of bilateral ties, however, was not quite sustained in the following decades. After Prime Minister Hayato Ikeda’s visit to India in 1961, the next Prime Ministerial visit from Japan was by Yasuhiro Nakasone in 1984. Prime Ministerial visits from India included Smt. Indira Gandhi (1969 & 1982), Shri Rajiv Gandhi (1985 & 1987) and Shri P. V. Narasimha Rao (1992).
A transformational development in the economic history of India was Suzuki Motor Corporation’s path breaking investment in India in the early 1980s that revolutionized the automobile sector, bringing in advanced technology and management ethics to India. A test of the reliability of Japan as a friend was witnessed in 1991, when Japan was among the few countries that unconditionally bailed India out of the balance of payment crisis.
The beginning of the 21st century witnessed a dramatic transformation in bilateral ties. During Prime Minister Mori’s path-breaking visit to India in 2000, the Japan-India Global Partnership in the 21st century was launched. The Joint Statement signed by Prime Ministers Manmohan Singh and Shinzo Abe in 2006 factored in the new challenges, and the relationship was upgraded to a Global and Strategic Partnership with the provision of annual Prime Ministerial Summits. A Comprehensive Economic Partnership Agreement (CEPA) between Japan and India was concluded in 2011.
Their Majesties Emperor Akihito and Empress Michiko visited India from 30 November-6 December 2013. President Shri Pranab Mukherjee hosted a banquet in their honour and Vice-President, Prime Minister and Leader of Opposition, Lok Sabha called on them. Their Majesties also visited Chennai.
PM Abe paid an official visit to India for the 8th Annual Summit with Prime Minister Dr. Manmohan Singh from 25-27 January 2014 and was the Chief Guest at the Republic Day parade in New Delhi.
Prime Minister Shri Narendra Modi visited Japan from 30 August – September 3, 2014 for the 9th Annual Summit Meeting with Prime Minster Shinzo Abe. PM Abe received PM Modi in Kyoto and hosted a private dinner. During the visit, the two sides upgraded the relationship to a ‘Special Strategic and Global Partnership’. During the visit, both sides agreed to establish the ‘India-Japan Investment Promotion Partnership’. PM Abe pledged to realize public and private investments worth JPY 3.5 trillion and doubling of the number of Japanese companies in India over the next five years.
Prime Minister Shinzo Abe visited India for the 10th Annual Summit with Prime Minister Shri Narendra Modi from 11-13 December 2015. Following their meeting, the two Prime Ministers issued a Joint Statement and a Fact Sheet agreeing to expand bilateral cooperation in a wide range of areas including in the fields of civil nuclear energy, high-speed rail (bullet train) network, defence equipment & technology, taxation, science & technology, investment, education, disaster relief and people-to-people exchanges. 16 Agreements/MoUs/ MoCs/ LoIs were signed/exchanged during the visit. In a special gesture, India also announced “visa on arrival” scheme for all Japanese travelers, including for business purposes, from March 1, 2016. (This has since been implemented). PM Abe, accompanied by PM Modi also visited the city of Varanasi, which signed a partnership agreement with the city of Kyoto in August 2014. A ‘Japan-India Make in India Special Finance Facility’ of JPY 1.3 trillion was also established during the visit of PM Abe to India in December 2015.
Prime Minister is expected to visit Japan for the 11th Annual Summit in November 2016.
The Foreign Minister level 8th Strategic Dialogue was held in New Delhi on 17 January 2015. Other Ministerial visits in 2015 included Home Minister Mr Rajnath Singh to participate in the UN-Third World Conference on Disaster Risk Reduction in Sendai (14-16 March); Raksha Mantri Mr Manohar Parrikar for the Annual Defence Ministers Meeting (29-31 March); Minister of Economy, Trade and Industry (METI) Mr Yoichi Miyazawa to India (27 April-1 May); Minister of State for Finance Mr Jayant Sinha (May); Minister for Railways Mr Suresh Prabhu (6-9 September); Minister for Science & Technology Mr Harsh Vardhan (2-4 November).
Ministerial visits in 2016 included Minister (IC) for Power, Coal, New and Renewable Energy Mr. Piyush Goyal, (12-15 January); Minister of State (Home) Mr Kiren Rijiju (19-21 January); Union Health and Family Welfare Minister Mr. Jagat Prakash Nadda to attend the Asian Health Ministers' Meeting on Anti-Microbial Resistance(15-17 April); then Minister of Education, Culture, Sports, Science and Technology Mr. Minister Hiroshi Hase (6 May); Union Finance Minister Mr. Arun Jaitley ( 29 May-4 June); then Defense Minister Gen Nakatani for the Annual Defense Minister consultations (14 July).
The two countries have several institutional dialogue mechanisms, which are held regularly, at senior official and functional levels to exchange views on bilateral issues as well as regional and international cooperation. There is Foreign Office Consultation at the level of Foreign Secretary / Vice Foreign Minister as well as a 2+2 Dialogue at the level of Foreign and Defense Secretaries. Similarly, there are dialogue mechanisms in diverse fields such as economy, commercial, financial services, health, road transport, shipping, education etc. to name a few sectors.
Economic and Commercial Cooperation
Economic relations between India and Japan have vast potential for growth, given the complementarities that exist between the two Asian economies. Japan's interest in India is increasing due to a variety of reasons including India's large and growing market and its resources, especially the human resources. The India-Japan Comprehensive Economic Partnership Agreement (CEPA) that came into force in August 2011 is the most comprehensive of all such agreements concluded by India and covers not only trade in goods but also Services, Movement of Natural Persons, Investments, Intellectual Property Rights, Custom Procedures and other trade related issues. The CEPA envisages abolition of tariffs over 94% of items traded between India and Japan over a period of 10 years.
Japan has been extending bilateral loan and grant assistance to India since 1958, and is the largest bilateral donor for India. Japanese ODA supports India’s efforts for accelerated economic development particularly in priority areas like power, transportation, environmental projects and projects related to basic human needs. The Ahmedabad-Mumbai High Speed Rail, the Western Dedicated Freight Corridor (DFC), the Delhi-Mumbai Industrial Corridor with twelve new industrial townships, the Chennai-Bengaluru Industrial Corridor (CBIC) are all mega projects on the anvil which will transform India in the next decade. Delhi Metro Project has also been realized with Japanese assistance.
In the Financial Year (FY) 2015-16, India-Japan trade reached US$ 14.51 billion, showing a decrease of 6.47% over FR 2014-15, when the total bilateral trade was
India’s primary exports to Japan have been petroleum products, chemicals, elements, compounds, non-metallic mineral ware, fish & fish preparations, metalliferous ores & scrap, clothing & accessories, iron & steel products, textile yarn, fabrics and machinery etc. India’s primary imports from Japan are machinery, transport equipment, iron and steel, electronic goods, organic chemicals, machine tools, etc.
Japan is also a major investor in India. The amount of Japan's cumulative investment in India since April 2000 to March 2016 has been US$ 20.966 billion, which is nearly 7 per cent of India's overall FDI during this period. Japanese FDI into India has mainly been in automobile, electrical equipment, telecommunications, chemical and pharmaceutical sectors.
Presence of Japanese companies in India has been increasing steadily. As of October 2015, there were 1,229 Japanese companies that are registered in India, an increase of 73 companies (6% growth) as compared to 1,156 (revised) in October 2014. These companies had 4,417 business establishments that are operating in India, which is an increase of 536 establishments (14% growth) compared to 3,881 (revised) in October 2014.
Science & Technology and Cultural Cooperation
The bilateral Science & Technology Cooperation Agreement signed in 1985 underpins the bilateral S&T cooperation. The India-Japan Science Council (IJSC) was established in the year 1993 and so far has organised 19 annual meetings, supported 250 joint projects, 1600 exchange visits of scientists, 65 joint seminars/workshops and 9 Asian Academic seminars and 10 Raman-Mizushima lectures. In 2006, Department of Science and Technology (DST) initiated a value based partnership working on the principles of 'reciprocity and co-funding with the Japan Society for the Promotion of Science (JSPS) and Japan Science and Technology Agency (JST) through MEXT (Ministry of Education, Culture, Sports, Science and Technology). Since then several Institutional Agreements/ MoUs in the areas of life sciences, material sciences, high energy physics, ICT, biotechnology, healthcare, methane hydrate, robotics, alternative sources of energy, earth sciences, outer space etc. have been signed between the science agencies of both countries.
Since May 2015, about 250 students have visited Japan under the annual “Japan-Asia Youth Exchange Program in Science” also known as the “SAKURA Exchange Program" implemented by DST and JST.
A cultural agreement was signed between India and Japan on 29 October 1956, which came into effect on 24 May 1957. In 1951, India established a scholarship system for young Japanese scholars to study in India. Prime Minister Rajiv Gandhi attended the April 1988 opening ceremony of the Festival of India. The Vivekananda Cultural Centre in Tokyo opened in September 2009. The Centre offers classes on Yoga, Tabla, Bharatanatyam, Odissi, Sambalpuri, Bollywood dances and Hindi and Bengali languages. The ICCR has set up two Chairs on India studies at Ryukoku University, Kyoto and in Reitaku University, Chiba. A year-long Festival of India in Japan 2014-15 was held from October 2014 to September 2015. The Embassy and the Consulate General in association with a number of partners organised various events marking the celebrations of 2nd International Day of Yoga on 19 June 2016. In pursuance of the MoU signed in 2015 between Yoga Organisation of Japan and the Quality Council of India for the promotion of Scheme for Voluntary Certification of Yoga, the first QCI examination outside India, was held in Japan at the Vivekananda Cultural Centre on 23 April, 2016.
Indian Community
The arrival of Indians in Japan for business and commercial interests began in the 1870s at the two major open ports of Yokohama and Kobe. More Indians entered Japan during World War I when Japanese products were sought to fill gaps in demand that war-torn Europe could not meet. Following the great Kanto Earthquake in 1923, most of the Indians in Yokohama relocated to the Kansai region (Osaka-Kobe) and the city hosted the largest migrant Indian population in Japan. Yokohama authorities offered special incentives to the Indian community after World War II to revive their old base in Kanto. The old Indian community in Japan focused on trading in textiles, commodities and electronics. With close linkages to India as well as connections in Hong Kong and Shanghai, they became major players in trading activities across Asia. A newer segment of the community is engaged in gems and jewelry.
In recent years, there has been a change in the composition of the Indian community with the arrival of a large number of professionals, including IT professionals and engineers working for Indian and Japanese firms as well as professionals in management, finance, education, and S&T research. The Nishi-
kasaiKasai area in Tokyo is emerging as a “mini-India”. Their growing numbers had prompted the opening of three Indian schools in Tokyo and Yokohama. The community is actively engaged in events organized by the Embassy. The Indian community lives harmoniously with the neighbours and has developed relations with local governments to become valuable members of the Japanese community. Presently 28,352 Indians live in Japan.India-Japan Economic Relations
Economic relations between India and Japan have vast potential for growth, given the obvious complementarities that exist between the two Asian economies. Japan's interest in India is increasing due to variety of reasons including India's huge and growing market and its resources, especially the human resources. The signing of the historic India-Japan Comprehensive Economic Partnership Agreement (CEPA) and its implementation from August 2011 has accelerated economic and commercial relations between the two countries. During the visit of Prime Minister Modi to Japan in September 2014, PM Shinzo Abe pledged $35 billion in investment in India's public and private sectors over the next five years. The two countries also set a target of doubling Japanese FDI and the number of Japanese firms in India by the year 2019.
2. Bilateral trade between the two countries more than doubled between 2006-07 and 2012-13. However, total trade has come down to $ 14.51 billion in 2015-16 from a peak of $ 18.5 billion in 2012-13. In 2015-16, India's exports to Japan were $ 4.66 billion while imports were $ 9.85 billion. The negative or slow growth in trade with Japan is a matter of concern for India in view of the fact that there is high potential for faster progress on goods and services trade. The share of India-Japan bilateral trade in Japan's total trade has been hovering around 1 per cent but it is in the range of 2.2 to 2.5 per cent of India's total trade. The export-import statistics for the last eight years as per India's Ministry of Commerce data bank are as follows:
(Dollar billion)
Year
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
(Apr-Mar)
India's export
to Japan
3.86
3.02
3.63
5.09
6.33
6.09
6.81
5.38
4.66
India’s Total Export
163.13
185.29
178.75
251.13
305.96
300.27
314.40
310.33
262.29
%Share
2.37
1.63
2.03
2.07
2.07
2.03
2.17
1.73
1.77
India's import from
fromJapan6.32
7.89
6.73
8.63
12.10
12.51
9.48
10.13
9.85
India’s Total Import
251.65
303.69
288.37
369.77
489.32
491.94
450.20
448.03
381.00
%Share
2.52
2.60
2.34
2.33
2.47
2.54
2.11
2.26
2.58
India-Japan
bilateral trade
10.18
10.91
10.36
13.72
18.43
18.61
16.39
15.51
14.51
Percentage Change
36.5
7.2
-5.04
32.4
34.3
1.00
-11.9
(-) 5.36
(-) 6.4
India’s primary exports to Japan have been petroleum products, chemical elements/compounds, fish and fish preparation, non-metallic mineral ware, Metalliferous ores & scrap, clothing and accessories, iron & steel products, textile yarn/fabrics, machinery, feeding-stuff for animals, etc. India’s primary imports from Japan are machinery, iron & steel products, electrical machinery, transport equipment, chemical elements/compound, plastic materials, manufactures of metals, precision instruments, rubber manufactured, coal/coak and briquettes, etc.
Japan's Investment
3. Regarding investment, India has been ranked as the most attractive investment destination in the latest survey of Japanese manufacturing companies, conducted by the Japan Bank for International Cooperation (JBIC). Japanese FDI in India has increased in recent years but it still remains small compare to Japan's total outward FDI. In terms of cumulative FDI inflows into India, Japan is India's fourth largest source of FDI. Japanese FDI in India grew exponentially from US$ 139 million in 2004 to all time high of $5551 million in 2008 due to mega deals particularly acquisition of Ranbaxy by Daichi Sankyo. In the last two years, Japanese FDI into India increased from $ 1.7 billion in 2013-14 to $2.61 billion in 2015-16. The amount of Japan's cumulative investment in India since April 2000 to March 2016 has been US$ 20.966 billion, which is nearly
Year
Japanese FDI in India (million US$)
% Change
2001
150
(-) 14.3
2002
146
(-) 2.7
2003
124
(-) 15.1
2004
139
12.1
2005
266
91.4
2006
512
92.5
2007
1506
194.1
2008
5551
268.6
2009
3664
(-) 34.0
2010-11
2864
(-) 21.8
2011-12
2326
(-) 18.8
2012-13
2786
19.8
2013-14
1718
(-) 38.36
2014-15
2084
21.3
2015-16
2614
25.4
However, the number of Japanese affiliated companies in India has grown significantly in recent years. As of March 2016, there were 1,209 Japanese companies that are registered in India, an increase of 137 companies (13%) compared to 2013. These companies had 3,961 business establishments that are operating in India, which is an increase of 1,419 establishments (56%) compared to 2013.
Japanese Official Development Assistance (ODA)
Japan has been extending bilateral loan and grant assistance to India since 1958. Japan is the largest bilateral donor to India. Japanese ODA supports India’s efforts for accelerated economic development particularly in priority areas like power, transportation, environmental projects and projects related to basic human needs. A noticeable positive trend in these years is that even as amount committed has stabilized or gone down somewhat, actual disbursement has increased. From 2007-08, Japanese side has introduced a Double Track Mechanism for providing ODA loans which allows us to pose project proposals to the Japanese side twice in a financial year. The interest rates applicable from April 2013 are
Year
Commitment
Disbursement
Yen Billion
Yen Billion
2002-03
120
81
2003-04
125
80
2004-05
134.466
68.85
2005-06
155.458
68.68
2006-07
184.893
55.47
2007-08
225.13
94.65
2008-09
236.047
122.56
2009-10
218.2
128.95
2010-11
203.566
123.84
2011-12
134.288
139.22
2012-13
353.106
113.964
2013-14
365.059
144.254
2014-15
71.39
74.36
2015-2016
400
390*
* highest ever ODA loan disbursement in a financial year in Yen terms.
Specific Projects and Industrial Corridors
- The DMIC - a flagship project of Indo-Japanese cooperation. Implementation of the project is in progress. Indian Government, through the Delhi Mumbai Industrial Corridor (DMIC) Project, is in the process of initiating a new era of industrial infrastructure development with the creation of new generation smart cities across six Indian States.
- In addition to new manufacturing hubs, DMIC will envisage development of infrastructure linkages like power plants, assured water supply, high capacity urban transportation and logistics facilities as well as important interventions like skill development programme for providing employment opportunities of youth.
- The master planning of the DMIC New industrial cities has been carried out by the world class international consultants. Engineering, Procurement and Construction (EPC) contracts for approximately Rs. 3200 crore have been awarded in Dholera in Gujarat, Shendra in Maharashtra, Vikram Udyogpuri in Madhya Pradesh and Integrated Industrial Township Project at Greater Noida.
- In Dholera, the roads and services work has been awarded to M/s Larsen & Tubro while the similar work for Shendra and Integrated Industrial Township Project at Greater Noida have been awarded to M/s Shapoorji & Pallonji. Construction has started at all the project sites namely at Vikram Udyogpuri in Madhya Pradesh, Shendra in Maharashtra, Dholera in Gujarat and Integrated Industrial Township at Greater Noida.
- Shareholders’ Agreement (SHA) has been executed with the State Government of Madhya Pradesh, Uttar Pradesh, Maharashtra and Gujarat. Accordingly, SPVs for the Integrated Industrial Township Project at Greater Noida, Uttar Pradesh; Vikram Udyogpuri near Ujjain in Madhya Pradesh, Phase-I of Shendra Bidkin Industrial Park in Maharashtra and Dholera Special Investment region in Gujarat have been incorporated. The equity of the State Government and DMIC Trust has been released/transferred to the SPVs.
- Earlier environmental clearance has been obtained and Digital master planning/ Information and Communication Technology Master Planning work is completed for almost all the projects. The cities are being benchmarked against the world class standards of sustainability and eco-friendly developments.
- DMICDC has also commissioned a 5MW Model Solar Power Project at Neemrana, Rajasthan with latest cutting edge Japanese technology and the power is being supplied to the grid.
- DMICDC is also implementing a smart solution for Logistic sector by creating a Logistics Databank for near to real time tracking of the movement of the containers so as to bring in efficiency in logistics value chain in partnership with NEC Corporation of Japan. The regulatory and statutory approvals have been obtained and the trial operations will start shortly.
- DMICDC has prepared the DPRs for MRTS projects for Ahmedabad- Dholera in Gujarat and Manesar- Bawal in Haryana, awaiting approval from State Govts. States to start Land acquisition process for taking the projects forward.
- In Principle Approval has been obtained for Greenfield International Airport at Dholera (Gujarat) and Site clearance has been obtained for the Greenfield Airport at Kotkasim (Rajasthan).
- The DMIC - a flagship project of Indo-Japanese cooperation. Implementation of the project is in progress. Indian Government, through the Delhi Mumbai Industrial Corridor (DMIC) Project, is in the process of initiating a new era of industrial infrastructure development with the creation of new generation smart cities across six Indian States.
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Business Culture in India
Business Culture
Business Culture India is a relationships-driven society. Everyone is connected to everyone else with whom one does business. Dealing with strangers is avoided – reasons for this are not too far to seek. With a judicial system that is painfully slow, expensive and unpredictable, one wants to avoid going to courts. If one is dealing with someone on whom one can exert some pressure, whether it is emotional or from relatives and friends, one is assured of some recourse if matters turn sour. Relationships are built upon mutual trust and respect. In general, Indians prefer to have long-standing personal relationships prior to doing business. It may be a good idea to go through a third party introduction. This gives you immediate credibility. Doing business in India involves spending a lot of time building relationships with all sort of people whether in business or in government or in community or in politics. This is strange for foreigners who come to India from Western Europe or USA. However, this does not surprise anyone who has done business in most of Africa or South America or Asia. It is not unusual for business associates to try to establish relationships that extend to families and friends. This seems strange to western mindset where business and personal life are kept separate. The dividing line in India is either non-existent or very thin. So, if you receive a request from your Indian associate to go to a picnic together with families on the weekend, do not be surprised. Language of contracts in India is often flowery and extremely elaborate. Indian advocates and solicitors sometimes draw up such elaborate and complex contract documents that virtually no one bothers to read through the whole of it. It is not uncommon for parties to a contract to rely on the informal or email or verbal assurances that they have among themselves while the formal contract is seen as no more than a necessary evil that one would rather not touch. We, Anil Chawla Law Associates LLP, advise strongly against this approach. Indian entrepreneurs and senior managers often work for more than 10 hours a day and work on weekends too. Calling up business associates on a Sunday or at 8 pm is not considered something extraordinary. Everyone in India has one or more mobile phones. Calling people on mobile at odd hours (keeping in mind the time when the person receiving the call goes to sleep and wakes up) is considered normal. Not picking up a call from someone known is considered rude.
Answering machine facility is almost unknown in the country. Typically, if one misses a call from someone known, calling back as early as possible is considered almost mandatory. India is a hierarchical society. Even in some large cities where due to western influence calling each other by first name has become acceptable, the hierarchical mindset remains deep rooted. As a general rule, calling people by first name is avoidable unless the person is equivalent or lower to you in age and rank. Anyone who is older (or of higher rank) must be addressed respectfully. This is a hierarchical culture, so greet the eldest or most senior person first. The usual form of greeting does not involve shaking hands even though shaking hands is common. Men may shake hands with other men and women may shake hands with other women; however there are seldom handshakes between men and women. Indians consider it rude to say a clear 'no'. Indians will offer you the response that they think you want to hear. Since they do not like to give negative answers, Indians may give an affirmative answer but be deliberately vague about any specific details. This will require you to look for non-verbal cues, such as a reluctance to commit to an actual time for a meeting or an enthusiastic response. A problem that many foreigners face when dealing with Indian business houses over email etc. is the tendency of Indians to fall silent. Often, when an Indian does not wish to pursue the matter further, the tendency is to fall silent rather than close the matter with a clear ‘no’. Indians enjoy eating together. All food on the table must be shared. The western habit of individual potions being served and each one ordering one’s own food is a strict no-no. A group orders food together. So, before ordering there is quite some discussion to ensure that everyone’s tastes are taken care of and no food is wasted. Often people make compromises only to ensure consensus in the group. For example, if everyone else in the group wants ice cream for dessert, someone who wants coffee is likely to go with the group and have ice cream. If everyone on the table is inclined to have Indian vegetarian food, it will be rude for one individual to order chicken for oneself. Punctuality is the norm as far as business meetings are concerned. However, on social occasions, where large numbers of people are invited, it is customary to be late. It is advisable to ask others who may be invited to the same event whether it will be appropriate to be late. As a general rule, if someone is waiting for you in particular, you must not be late. On the other hand, if you are faceless part of a large crowd, it is fine to be late. Clothing in almost all business situations is conservative though it is not formal. Women, in particular, are advised to avoid dresses that expose legs or other such body parts.
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Labor Environment
a. Labor Laws
i. Laws applicable to foreign nationals
foreign national can work in India only if he or she has a valid Indian employment visa (“‘E’ visa”), unless the foreigner is already holding a valid Person of Indian Origin (PIO) card or a Overseas Citizen of India (OCI) card.
I hope this quick summary can be used as a road map for employers doing business in India. Please post your questions and comments.
Important Note: This posting is intended to provide a brief overview of employment law in India. It is not intended as a substitute for professional legal advice and counsel.
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Deployment of Foreign Employees
1.1 The deputation for expatriates and foreign nationals attracts several issues under the Indian legal system. Foreign nationals are engaged in India to provide training and development to local employees, for technology transfer, compliance of joint ventures and license agreements etc.1.2 At the time of setting up a business in India, the foreign employer generally prefers to appoint its own employees for the management and control of the business. This is done in order to smoothen the transfer and execution of company policies to the Indian business arm. Further, it is convenient for the foreign employees working in India to co-ordinate with the parent company in terms of decision making, financial management and other business matters.
The major tax implications on a foreign and Indian national, working in India, and the liability of their employer under the Indian Income Tax Act, 1961 ('IT Act') are laid out below:
1.3 Residential Status of an Expat
An individual is taxed in India on the basis of their residential status under the IT Act. The residential status is determined on the basis of the physical presence of the individual in India during that particular financial year (1 April to 31 March).
The categorization of the individuals on the basis of their residential status in a given financial year is done as follows:
1. Resident in India –
o Resident and ordinarily resident (ROR)
o Resident but not ordinarily resident (RNOR)
2. Non-Resident in India (NR)
Foreign nationals may be exempt from tax in India if their stay does not exceed 90 days, as prescribed in the Act, or the number of days prescribed (generally 183 days) under various double taxation avoidance agreements (DTAA) into which India has entered with other countries, subject to the satisfaction of all the other conditions.
However, in practice, an expatriate coming to India for the first time may remain RNOR for first 3 tax years. But the facts and circumstances may vary from case to case in determining the residential status.
Remuneration for services rendered by a foreign national employed by a foreign enterprise during his/her stay in India will be exempt from tax in India if:
- the total period of the stay in India does not exceed 90 days in a financial year
- the foreign enterprise is not engaged in any trade or business in India
- the remuneration is not charged to an employer subject to Indian income tax.
It may be noted that to the extent the individual qualifies for relief in terms of the 'dependent personal services' article of the applicable DTAA, there will be no tax liability. However, this exemption will not apply if the Indian entity is the individual's economic employer. In addition, any salary or local benefits received in India are also not eligible for relief.
1.4 Tax liability of an Employee
1.5 In respect of Indian employees
- Under Section 192 (1) of the IT Act, employers are required to deduct income tax on the amount payable as salary to the employees at the rate as may be applicable in the relevant financial year.
- Employers also have an option to pay tax on behalf of an employee without making any deduction from her/his income, on the income in the nature of perquisites, which are not provided for by way of monetary payment.
- Section 200(1) of the Companies Act, 1956 prohibits a company from paying remuneration free of income tax. No company shall pay to any officer or employee thereof, whether in his capacity as such or otherwise, remuneration free of any tax.
- Employers can pay tax on non-monetary perquisites provided to their employees without making any deduction from his/her salary and the tax so paid by employer on behalf of the employee on non-monetary perquisites is exempt in the hands of employee under Section 10(10CC) of the IT Act.
1.4.1 In respect of foreign nationals-
1.4.2 Visa Requirements
- Employment visas are issued to foreigners who are working in India, for an Indian entity. Employment visas are usually granted for one year, or the term of the contract. It can be extended in India.
- Foreign national who wants to visit India for employment in a company/ firm/organization registered in India or for employment in a foreign company/ firm/organization engaged for execution of some project in India, can obtain employment visa provided that they are being sponsored for an Employment Visa by their employer and they draw a salary in excess of USD 25,000 per annum. The condition of annual floor limit on income will not apply to:
- Ethnic cooks,
- Language teachers (other than English language teachers) / translators and
- Staff working for the concerned Embassy/High Commission in India.
- Ethnic cooks,
- Employment visa is also granted to foreigners coming to India as a consultant on contract for whom the Indian company pays a fixed remuneration (this may not be in the form of a monthly salary), foreign artists engaged to conduct regular performances for the duration of the employment contract given by Hotels, Clubs, other organizations, coaches of national /state level teams, or reputed sports clubs, sportsmen who are given contract for a specified period by the Indian Clubs/organizations, self-employed foreign nationals coming to India for providing engineering, medical, accounting, legal or such other highly skilled services in their capacity as independent consultants provided the provision of such services by foreign nationals is permitted under law, engineers/technicians coming to India for installation and commissioning of equipment/machines/tools in terms of the contract for supply of such equipment/machines/tools, providers of technical support/services, transfer of know-how/services for which the Indian company pays fees/royalty to the foreign company.
- Embassy/Consulate may grant employment visa, which is valid for an year irrespective of the contract. Further extension may be obtained from MHA/FRRO in the concerned state in India. The visa duration starts from the day of issuance and not from the day of entry in India. Foreign technician may get visa for period of five years or the bilateral agreement between Indian and foreign government whichever is less with multiple entries. For highly skilled IT person visa validity is up to 3 years with multiple entries. Others can be granted visa with validity of two years with multiple entries.
- Indian Missions/ Posts may grant multiple entry project Visa to skilled or highly skilled foreign nationals coming to India for execution of projects. Project Visa will cover only professionals related to Power and Steel sector.
- Business visa is given strictly to those who make business related trips to India such as making sales or establishing contact on behalf of the company outside India.
- This is not applicable for people who are coming to India for part time or full
1.4.3 Remuneration received by foreign expatriates working in India generally is assessable under the head "salaries" and is deemed to be earned in India. Income payable for a leave period that is preceded and succeeded by services rendered in India and that forms part of the service contract is also regarded as income earned in India. Thus, irrespective of the residence status of an expatriate employee, the salary paid for services rendered in India is liable to tax in India. There are no special exemptions or deductions available to foreign nationals working in India.
However, a foreign national who comes to India on short-term business visits can claim an exemption under the domestic tax law or a relevant tax treaty.
1.4.4 Where salary is payable in foreign currency, the salary income must be converted to Indian rupees. For this purpose, the rate of conversion to be applied is the telegraphic transfer-buying rate as adopted by the State Bank of India on the last day of the month immediately preceding the month in which the salary is due or paid. However, if tax is to be withheld on such an amount, the tax withheld is calculated after converting the salary payable into Indian currency at the rate applicable on the date tax was required to be withheld.
1.4.5 The remuneration received by a foreign national is assessable under the head 'salaries' and is deemed to be earned in India if it is payable to him for services rendered in India.
- There are certain exceptions to this rule, few of them being the following:
i. Remuneration of an employee of a foreign enterprise is exempt from tax if his stay in India is less than 90 days in aggregate during the financial year and is not liable to be deducted from the income of the employer. This is further subject to the provisions of Double Taxation Avoidance Agreement(s) ('DTAA(s)') entered by India with various countries.
ii. Remuneration received by a foreign expatriate as an official of an embassy or high commission or consulate or trade representative of a foreign state is exempt on reciprocal basis.
iii. Remuneration under co-operative technical assistance programme or technical assistance grants agreements.
iv. Where the income is derived by way of royalty or fees for technical services received pursuant to an agreement.
- In addition to the above, the Central Government has entered into DTAAs with various countries. As per Section 90(2) of the Act, in relation to an assessee to whom any DTAA applies, the provisions of the Act shall apply only to the extent they are more beneficial to the assessee. The provisions of the DTAAs prevail over the statutory provisions.
1.4.6 Registration with FRRO
Foreign nationals including their family members who intend to stay in India for more than 180 days have to get themselves registered with the Foreign Regional Registration Office (FRRO) within two weeks of arrival in India. For the purposes of registration, the individual is required to make an application in the prescribed form and be present in person at the time of registration. There is no registration fee charged for registration by FRRO.
1.4.7 What constitutes a Permanent Establishment?
- As per treaty laws, India cannot tax the business income of a foreign entity, unless that entity has a Permanent Establishment ('PE') in India.
- Article 7 of the various DTAAs stipulates that only the profits directly or indirectly attributable to the PE in India would be taxed in India. Therefore, only the PE generating income with a business connection in India will be taxable in India.
- The PE of the foreign enterprise in India may use its assets and resources to earn income both in India and outside India, but only the segment of Income that relates to the business connection in India is taxed. In the absence of business connection in India, the PE would just be a taxable entity and not a tax paying entity.
- A foreign company is generally considered to have a PE in India if the foreign company is regarded as having a fixed place in India through which the said foreign company carries on business in India.
- Under some DTAAs, a foreign company is regarded as having a PE in India, if the company renders services (Royalties or Fees for Technical Services) to an Indian company through employees or other personnel deputed to India and such services are rendered by its employees for more than a specified period of time. Such type of a PE is known as Service PE. Furnishing of services is the most important check for attraction of Service PE.
1.4.8 Secondment (employee loan/lease) by Parent Company to Indian subsidiary.
- The secondment of employees though may seem to be very simple, can lead to serious tax implications both for the Indian Subsidiary Company and the Parent Overseas Company.
- The tax obligations of the seconded employee working for Indian company depend upon various factors like the residential status he acquires while working in India, place where services are being rendered, receipt of salary in India or abroad etc. However the tax obligations of the Indian and Foreign employer may not end even if seconded employee has been subject to taxes in India for salary earned as seconded employee.
- A case of secondment of employees by a foreign company may constitute a Service PE if:
i. The foreign company retains the direct supervision and control over the seconded employees.
ii. The work being performed by the employees is on behalf of the foreign company.
iii. The foreign company is getting any amount over and above the mere re-imbursement of the salaries of the concerned employees.
- In the case of DIT (International Taxation), Mumbai Vs. Morgan Stanley and Co. Inc., the Service PE was held to be in place for the foreign company due to the reason that the services were being rendered by the seconded employees on behalf of the foreign company, the foreign company being responsible for the work performed by the seconded employees and that the seconded employees continued to have a lien over their employment with the foreign company.
- The Income Tax Appellate Tribunal (ITAT) has laid down certain factors to hold that an arrangement would not constitute a Service PE on account of following reasons:
i. The services rendered are independent of and not under the control of the foreign company.
ii. The concerned employees are for all practical purposes, employees of the Indian company.
iii. The foreign company is providing only the personnel and not furnishing any services through the personnel.
iv. The reimbursement being made by the Indian company to the foreign company is only towards the actual cost of the salaries paid to the concerned employees and without any mark up.
The Indian company has the right to terminate the concerned employees from the services to the Indian company.
i. Laws applicable to Indian nationals
In the Constitution of India from 1950, articles 14-16, 19(1)(c), 23-24, 38, and 41-43A directly concern labo
ur rights. Article 14 states everyone should be equal before the law, article 15 specifically says the state should not discriminate against citizens, and article 16 extends a right of "equality of opportunity" for employment or appointment under the state. Article 19(1)(c) gives everyone a specific right "to form associations or unions". Article 23 prohibits all trafficking and forced labour, while article 24 prohibits child labour under 14 years old in a factory, mine or "any other hazardous employment".Articles 38-39, and 41-43A, however, like all rights listed in Part IV of the Constitution are not enforceable by courts, rather than creating an aspirational "duty of the State to apply these principles in making laws".[1] The original justification for leaving such principles unenforceable by the courts was that democratically accountable institutions ought to be left with discretion, given the demands they could create on the state for funding from general taxation, although such views have since become controversial. Article 38(1) says that in general the state should "strive to promote the welfare of the people" with a "social order in which justice, social, economic and political, shall inform all the institutions of national life. In article 38(2) it goes on to say the state should "
minimiseminimize the inequalities in income" and based on all other statuses. Article 41 creates a "right to work", which the National Rural Employment Guarantee Act 2005 attempts to put into practice. Article 42 requires the state to "make provision for securing just and human conditions of work and for maternity relief". Article 43 says workers should have the right to a living wage and "conditions of work ensuring a decent standard of life". Article 43A, inserted by the Forty-second Amendment of the Constitution of India in 1976,[2] creates a constitutional right to codetermination by requiring the state to legislate to "secure the participation of workers in the management of undertakings".Indian labo
ur law makes a distinction between people who work in "organized" sectors and people working in "unorganized sectors".[citation needed] The laws list the different industrial sectors to which various labour rights apply. People who do not fall within these sectors, the ordinary law of contract applies.[citation needed]India's labo
ur laws underwent a major update in the Industrial Disputes Act of 1947. Since then, an additional 45 national laws expand or intersect with the 1948 act, and another 200 state laws control the relationships between the worker and the company. These laws mandate all aspects of employer-employee interaction, such as companies must keep 6 attendance logs, 10 different accounts for overtime wages, and file 5 types of annual returns. The scope of labour laws extend from regulating the height of urinals in workers' washrooms to how often a work space must be lime-washed.[3] Inspectors can examine wok in jirkspace anytime and declare fines for violation of any labour laws and regulations.mong the employment contracts that are regulated in India, the regulation involves significant government involvement which is rare in developed countries. The Industrial Employment (Standing Orders) Act 1946 requires that employers have terms including working hours, leave, productivity goals, dismissal procedures or worker classifications, approved by a government body.[4]
The Contract Labour (Regulation and Abolition) Act 1970 aims at regulating employment of contract labo
ur so as to place it at par with labour employed directly.[5] Women are now permitted to work night shifts too (10 pm to 6 am).[5]The Latin phrase 'dies non' is being widely used by disciplinary authorities in government and industries for denoting the
'unauthorised'unauthorized absence' to the delinquent employees. According to Shri R. P. Saxena, chief engineer, Indian Railways, dies-non is a period which neither counted in service nor considered as break in service.[6] A person can be marked dies-non, if· absent without proper permission
· when on duty left without proper permission
· while in office but refused to perform duties
In cases of such willful and unauthorized absence from work, the leave sanctioning authority may decide and order that the days on which the work is not performed be treated as dies non-on the principle of no work no pay. This will be without prejudice to any other action that the competent authority might take against the persons resorting to such practices.[7] The principle of "no work no pay" is widely being used in the banking industry in India.[8] All other manufacturing industries and large service establishments like railways, posts and telecommunications are also implementing it to minimize the incidences of unauthorized absence of workers. The term 'industry' infuses a contractual relationship between the employer and the employee for sale of products and services which are produced through their cooperative endeavor.
This contract together with the need to put in efforts in producing goods and services imposes duties (including ancillary duties) and obligations on the part of the employees to render services with the tools provided and in a place and time fixed by the employer. And in return, as a quid pro quo, the employer is enjoined to pay wages for work done and or for fulfilling the contract of employment. Duties generally, including ancillary duties, additional duties, normal duties, emergency duties, which have to be done by the employees and payment of wages therefor. Where the contract of employment is not fulfilled or work is not done as prescribed, the principle of 'no work no pay' is brought into play.
The Payment of Wages Act 1936 requires that employees receive wages, on time, and without any unauthorized deductions. Section 6 requires that people are paid in money rather than in kind. The law also provides the tax withholdings the employer must deduct and pay to the central or state government before distributing the wages.[9]
The Minimum Wages Act 1948 sets wages for the different economic sectors that it states it will cover. It leaves a large number of workers unregulated. Central and state governments have discretion to set wages according to kind of work and location, and they range between as much as ₹ 143 to 1120 per day for work in the so-called central sphere. State governments have their own minimum wage schedules.[10]
The Payment of Gratuity Act 1972 applies to establishments with 10 or more workers. Gratuity is payable to the employee if he or she resigns or retires. The Indian government mandates that this payment be at the rate of 15 days salary of the employee for each completed year of service subject to a maximum of ₹ 1000000.[11]
The Payment of Bonus Act 1965, which applies only to enterprises with over 20 people, requires bonuses are paid out of profits based on productivity. The minimum bonus is currently 8.33 per cent of salary.[12]
Weekly Holidays Act 1942 Beedi and Cigar Workers Act 1967
The Workmen's Compensation Act 1923 requires that compensation is paid if workers are injured in the course of employment for injuries, or benefits to dependants. The rates are low.[13][14]
· Factories Act 1948, consolidated existing factory safety laws
· The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 that seeks to protect and provides a mechanism for women to report incidents of sexual harassment at their place of work.
The Employees' Provident Fund and Miscellaneous Provisions Act 1952 created the Employees' Provident Fund Organisation of India. This functions as a pension fund for old age security for the organized workforce sector. For those workers, it creates Provident Fund to which employees and employers contribute equally, and the minimum contributions are 10-12 per cent of wages. On retirement, employees may draw their pension.[15]
· Indira Gandhi National Old Age Pension Scheme
· Public Provident Fund (India)
The Employees' State Insurance provides health and social security insurance. This was created by the Employees' State Insurance Act 1948.[16]
The Unorganized Workers' Social Security Act 2008 was passed to extend the coverage of life and disability benefits, health and maternity benefits, and old age protection for unorganized workers. "Unorganized" is defined as home-based workers, self-employed workers or daily-wage workers. The state government was meant to formulate the welfare system through rules produced by the National Social Security Board.
The Maternity Benefit Act 1961, creates rights to payments of maternity benefits for any woman employee who worked in any establishment for a period of at least 80 days during the 12 months immediately preceding the date of her expected delivery.[17]
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, provides for compulsory contributory fund for the future of an employee after his/her retirement or for his/her dependents in case of employee's early death. It extends to the whole of India except the State of Jammu and Kashmir and is applicable to:
· every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employed.
· every other establishment employing 20 or more persons or class of such establishments that the Central Govt. may notify.
· any other establishment so notified by the Central Government even if employing less than 20 persons.
was the view of many in the Indian Independence Movement, including Mahatma Gandhi, that workers had as much of a right to participate in management of firms as shareholders or other property owners.[20] Article 43A of the Constitution, inserted by the Forty-second Amendment of the Constitution of India in 1976,[2] created a right to codetermination by requiring the state to legislate to "secure the participation of workers in the management of undertakings". However, like other rights in Part IV, this article is not directly enforceable but instead creates a duty upon state organs to implement its principles through legislation (and potentially through court cases). In 1978 the Sachar Report recommended legislation for inclusion of workers on boards, however this had not yet been implemented.[21]
The Industrial Disputes Act 1947 section 3 created a right of participation in joint work councils to "provide measures for securing amity and good relations between the employer and workmen and, to that end to comment upon matters of their common interest or concern and endeavo
ur to compose any material difference of opinion in respect of such matters". However, trade unions had not taken up these options on a large scale. In National Textile Workers Union v Ramakrishnan[22] the Supreme Court, Bhagwati J giving the leading judgment, held that employees had a right to be heard in a winding up petition of a company because their interests were directly affected and their standing was not excluded by the wording of the Companies Act 1956 section 398.· Excel Wearv. Union of India A.I.R. 1979 S.C. 25, 36
Collective action[edit]
The Industrial Disputes Act 1947 regulates how employers may address industrial disputes such as lockouts, layoffs, retrenchment etc. It controls the lawful processes for reconciliation, adjudication of labour disputes.[23]
According to fundamental rules (FR 17A) of the civil service of India, a period of unauthorized absence
(i) in the case of employees working in industrial establishments, during a strike which has been declared illegal under the provisions of the Industrial Disputes Act, 1947, or any other law for the time being in force;
(ii) in the case of other employees as a result of action in combination or in concerted manner, such as during a strike, without any authority from, or valid reason to the satisfaction of the competent authority; shall be deemed to cause an interruption or break in the service of the employee, unless otherwise decided by the competent authority for the purpose of leave travel concession, quasi-permanency and eligibility for appearing in departmental examinations, for which a minimum period of continuous service is required.[24] hanalcasca, xnak
· Provisions of the Factories Act 1948
Main articles: Equality before the law and Discrimination law
Article 14 states everyone should be equal before the law, article 15 specifically says the state should not discriminate against citizens, and article 16 extends a right of "equality of opportunity" for employment or appointment under the state. Article 23 prohibits all trafficking and forced labo
ur, while article 24 prohibits child labour under 14 years old in a factory, mine or "any other hazardous employment".· Caste Disabilities Removal Act 1850
Sex discrimination[edit]
Article 39(d) of the Constitution provides that men and women should receive equal pay for equal work. In the Equal Remuneration Act 1976 implemented this principle in legislation.
Article 39(d) of the Constitution provides that men and women should receive equal pay for equal work. In the Equal Remuneration Act 1976 implemented this principle in legislation.
· Randhir Singh v Union of India Supreme Court of India held that the principle of equal pay for equal work is a constitutional goal and therefore capable of enforcement through constitutional remedies under Article 32 of Constitution
· State of AP v G Sreenivasa Rao, equal pay for equal work does not mean that all the members of the same cadre must receive the same pay packet irrespective of their seniority, source of recruitment, educational qualifications and various other incidents of service.
· State of MP v Pramod Baratiya, comparisons should focus on similarity of skill, effort and responsibility when performed under similar conditions
· Mackinnon Mackenzie & Co v Adurey D'Costa, a broad approach is to be taken to decide whether duties to be performed are similar
· Interstate Migrant Workmen Act 1979
Bonded Labour System (Abolition) Act 1976, abolishes bonded labo
ur, but estimates suggest that between 2 million and 5 million workers still remain in debt bondage in India.[25]Child labour in India is prohibited by the Constitution, article 24, in factories, mines and hazardous employment, and that under article 21 the state should provide free and compulsory education up to a child is aged 14.[26] However, in practice, the laws are absolutely not enforced.
· Juvenile Justice (Care and Protection) of Children Act 2000
· Child Labour (Prohibition and Abolition) Act 1986
Some of India's most controversial labo
ur laws concern the procedures for dismissal contained in the Industrial Disputes Act 1947. A workmen who has been employed for over a year can only be dismissed if permission is sought from and granted by the appropriate government office.[27] Additionally, before dismissal, valid reasons must be given, and there is a wait of at least two months for government permission, before a lawful termination can take effect. Redundancy pay must be given, set at 15 days' average pay for each complete year of continuous service. An employee who has worked for 4 years in addition to various notices and due process, must be paid a minimum of the employee's wage equivalent to 60 days before retrenchment, if the government grants the employer a permission to lay off.A permanent worker can be terminated only for proven misconduct or for habitual absence.[28] The Industrial Disputes Act (1947) requires companies employing more than 100 workers to seek government approval before they can fire employees or close down.[5] In practice, permissions for firing employees are seldom granted.[5] Indian laws require a company to get permission for dismissing workers with plant closing, even if it is necessary for economic reasons. The government may grant or deny permission for closing, even if the company is losing money on the operation.[29]
The dismissed worker has a right to appeal, even if the government has granted the dismissal application. Indian labo
ur regulations provide for a number of appeal and adjudicating authorities – conciliation officers, conciliation boards, courts of inquiry, labour courts, industrial tribunals and the national industrial tribunal – under the Industrial Disputes Act.[30] These involve complex procedures. Beyond these labour appeal and adjucating procedures, the case can proceed to respective State High Court or finally the Supreme Court of India.· Bharat Forge Co Ltd v Uttam Manohar Nakate [2005] INSC 45, a worker found sleeping for the fourth time in 1983. Bharat Forge initiated disciplinary proceedings under the Industrial Employment Act (1946). After five months of proceedings, the worker was found guilty and dismissed. The worker appealed to the labo
ur court, pleading that his dismissal was unfair under Indian Labour laws. The labour court sided with the worker, directed he be reinstated, with 50% back wages. The case went through several rounds of appeal and up through India's court system. After 22 years (ahem ahem), the Supreme Court of India upheld his dismissal in 2005· National Rural Employment Guarantee Act 2005
The Industries (Regulation and Development) Act 1951 declared that manufacturing industries under its First Schedule were under common central government regulations in addition to whatever laws state government enact. It reserved over 600 products that can only be manufactured in small-scale enterprises, thereby regulating who can enter in these businesses, and above all placing a limit on the number of employees per company for the listed products. The list included all key technology and industrial products in the early 1950s, including products ranging from certain iron and steel products, fuel derivatives, motors, certain machinery, machine tools, to ceramics and scientific equipment.
1. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
2. The Employees’ State Insurance Act, 1948
4. The Contract Labour (Regulation & Abolition) Act
6. The Industrial Disputes Act, 1947
7. The Industrial Employment (Standing Orders) Act, 1946
8. The Maternity Benefit Act, 1961
10. The Payment of Bonus Act, 1965
11. The Payment of Gratuity Act, 1972
12. The Payment of Wages Act, 1936
13. The Workmen Compensation Act, 1923
In India there are different definition of
If we consider the IDA (Industrial Dispute Act, 1947) the employer will be either the authority that is the head of a Central Government or a State Government, mainly for public employment. Or in relation to a local industry, the chief executive officer of that authority.
An employee for the IDA, called a workman, will be any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied.
But it is important to mention that under the IDA, a person who is employed mainly in a managerial or administrative capacity, or a supervisor who draws a monthly salary exceeding Indian rupee (INR) 1,600 will not be considered a workman.
Also, in 2009 a new bill was introduced to widen the definition of “employee” and bring in more people under the ambit of the Payment of Gratuity Act. (a new amendment was done to this bill in 2009). In both the bills, the definition of “employee” has been widened to include any person who is employed for wages, other than an apprentice.
There is no separate definition of an independent contractor under Indian labor laws. The relationship with an independent contractor will therefore be governed by the provisions of the Indian Contract Act, 1872 (ICA).
a. Labor Standards
i. Categories of worker
Skilled
Semi Skilled
Unskilled
Main workers:
Main workers were those who had worked for the major part of the year preceding the date of enumeration i.e., those who were engaged in any economically productive activity for 183 days (or six months) or more during the year.
Marginal workers:
Marginal workers were those who worked any time at all in the year preceding the enumeration but did not work for a major part of the year, i.e., those who worked for less than 183 days (or six months).
Non-workers:
Non-workers were those who had not worked any time at all in the year preceding the date of enumeration.
Main activity of a person who was engaged in more than one activity was reckoned in terms of time disposition. For example, if a person had worked as a daily wage labo
urer for four months, as an agricultural labourer for one month and as a cultivator for two months he was reckoned as daily wage labourer for question 15A since he had spent more time in this activity than as a cultivator or agricultural labourer.A person who normally worked but had been absent from work during the reference period on account of illness, holiday, temporary closure, strike etc., was treated as engaged in the work he would have otherwise have been doing, but for his temporary absence. Persons under training such as apprentices, with or without stipend or wages were treated as workers. A person who had merely been offered work but had not actually joined, was not treated as engaged in that work.
Activity Status The activity status of each of the members of the surveyed households was ascertained and recorded in the survey schedule. The codes used for recording the activity status of employed persons are the following in all the three rounds: Self employed own account worker 11 Self employed employer 12 Unpaid family worker 21 Worked as regular salaried/ wage employee 31 Worked as casual wage labo
ur in public work 41 Worked as casual wage labour in other types of work 51Location of Workplace Location of work place in rural and urban areas has been coded separately in both the 55th and 61st Round surveys, although there was an additional category – street without fixed location in 61st Round. Codes of 55th Round are given below: No fixed work Place 10 Work place in rural areas and located in Own dwelling 11 Own enterprise/ unit/office/ shop but outside own dwelling 12 Employer’
‟s dwelling 13 Employer’‟s enterprise/ unit/ office/shop but outside employer‟’s dwelling 14 Street with fixed location 15 Construction site 16 Others 19 Work place in urban areas and located in Own dwelling 21 Own enterprise/ unit/office/ shop but outside own dwelling 22 Employer‟’s dwelling 23 Employer‟’s enterprise/ unit/ office/shop but outside 24 employer‟’s dwelling Street with fixed location 25 Construction site 26 Others 29 In 61st Round, street without fixed location had code 16 in rural areas and 26 in urban areas. Thus the codes for construction site became 17 and 27 respectively. In 66th Round, these codes were more detailed as follows: No fixed work Place 10 Work place in rural areas and located in Own dwelling 11 Structure attached to own dwelling 12 Open area adjacent to own dwelling unit 13 Detached structure adjacent to own dwelling unit 14 Own enterprise/ unit/office/ shop but away from own dwelling 15 Employer’‟s dwelling unit 16 Employer‟’s enterprise/ unit/ office/shop but outside employer‟’s dwelling 17 Street with fixed location 18 Construction site 19 Others 20 Work place in urban areas and located in Own dwelling 21 Structure attached to own dwelling 22 Open area adjacent to own dwelling unit 23 Detached structure adjacent to own dwelling unit 24 Own enterprise/ unit/office/ shop but away from own dwelling 25 Employer‟’s dwelling unit 26 Employer‟’s enterprise/ unit/ office/shop but outside employer‟’s dwelling 27 Street with fixed location 28 Construction site 29 Others 30Domestic Worker
As per the definition provided by the ILO, “domestic work means any type of work performed in or for a private household and a domestic worker is any person engaged in domestic work within an employment relationship”.
No: NCO Code Description 1 233 Other teaching professionals 2 512 Housekeeping and restaurant service workers 3 513 Personal care and related workers 4 611 Market gardeners and crop growers 5 832 Motor vehicle drivers 6 913 Domestic and related helpers, cleaners and launderers 7 914 Building caretakers, window and related cleaners 8 915 Messengers, porters, door keepers and related workers 9 916 Garbage collectors and related labo
urers 10 931 Building and construction labourers Entitlement to statutory employment rightsStreet Vendors Street Vendors are usually identified by the NCO code 431 as per NCO-68 which relates to “street vendors, canvassers and news vendors” and NCO-2004 code 911 which relates to Street vendors and related workers.
The distribution of those with NCO code 431 by activity status revealed that they were mostly own account workers (code 11) and unpaid family workers (code 21). Tabulation by place of work revealed that street vendors either didn
‟’t have any fixed work place (code 10) or were working from own dwelling (codes 11 & 21) or street with fixed locationHome-Based Workers with location of work place as own dwelling (code 11 in rural areas and 21 in urban areas) were considered as Home Based Workers. In the 66th Round those with location of work place codes 11-14 and 21-24 were considered as home based workers.
“garbage collection, transportation and disposal”, 371 “recycling metal waste and scrap” and 372 “recycling of non-metal waste and scrap”. Thus all the informal sector informal workers in these industries are considered as waste pickers.
Cultivators
Agricultural labourers
Household industry workers
Other worke
Migrant labours[edit
]
Migrant skilled and unskilled labo
urers of India constitute about 40 to 85 percent of low wage working population in many parts of the Middle East. They are credited to having built many of the notable buildings in the Arab countries, including the Burj Khalifa in Dubai (above). Various claims of poor living conditions and labour abuse have been reported.[22]India has two broad groups of migrant labo
urers - one that migrates to temporarily work overseas, and another that migrates domestically on a seasonal and work available basis.About 4 million Indian-origin labo
urers are migrant workers in the middle east alone. They are credited to have been the majority of workers who built many of Dubai, Bahrain, Qatar and Persian Gulf modern architecture, including the Burj Khalifa, the tallest building in world's history which opened in January 2010. These migrant workers are attracted by better salaries (typically US$2 to 5 per hour), possibility of earning overtime pay, and opportunity to remit funds to support their families in India. The Middle East-based migrant workers from India remitted about US$20 billion in 2009. Once the projects are over, they are required to return at their own expenses, with no unemployment or social security benefits. In some cases, labour abuses such as unpaid salaries, unsafe work conditions and poor living conditions have been claimed.[22][23]Domestic migrant workers have been estimated to be about 4.2 million - (Domestic workers, not domestic migrant workers). These workers range from full-time to part-time workers, temporary or permanent workers. They are typically employed for remuneration in cash or kind, in any household through any agency or directly, to do the household work, but do not include any member of the family of an employer. Some of these work exclusively for a single employer, while others work for more than one employer. Some are live-in workers, while some are seasonal. The employment of these migrant workers is typically at the will of the employer and the worker, and compensation varies
India enacted Bonded Labour System Abolition Act (1976) to prohibit any and all forms of bonded labo
ur practice, to protect the bonded labour, and to criminalize individuals and entities that hire, keep or seek bonded labour.[26]Waste Pickers
i. Time periods
Working Hours in India: As per the Factories Act 1948, every adult (a person who has completed 18 years of age) cannot work for more than 48 hours in a week and not more than 9 hours in a day. According to Section 51 of the Act, the spread over should not exceed 10-1/2 hours.
How many hours (maximum) per day, week and year can a person work?
As per the Factories Act 1948, every adult (a person who has completed 18 years of age) cannot work for more than 48 hours in a week and not more than 9 hours in a day. According to Section 51 of the Act, the spread over should not exceed 10-1/2 hours.
The Minimum Wages Act, 1948 also specifies about the working hours under the rules 20 to 25 that the number of work hours in a day should not exceed 9 hours for an adult.
What are provisions under the labo
ur law for over time in India?Under Sec. 59 it is mentioned that where a worker works in a factory for more than 9 hours in any day or for more than 48 hours in any week, he/she shall, in respect of overtime work, be entitled to receive wages at the rate of twice his/her ordinary rate of wages.
Mines Act, 1952
Under Sec. 28 to 30 of the Act it is mentioned that no person employed in a mine shall be required or allowed to work in the mine for more than 10 hours in any day inclusive of overtime.
Minimum Wages Act, 1948
· Under Sec. 33 it is mentioned that for overtime wages are to be paid at the rate of twice the ordinary rates of wages of the worker. It mentions that the employer can take actual work on any day up to 9 hours in a 12 hours shift. But he must pay double the rates for any hour or part of an hour of actual work in excess of nine hours or for more than 48 hours in any week.
· Sec. 14 of the Act mentions that any worker whose minimum rate of wages are fixed with wage period of time, such as by hour, by the day or by any such period and if a worker works more than that number of hours, it is considered to be overtime. In case if the number of hours constituting a normal working day exceeds the given limit, then the employer will have to pay him for every hour or for part of an hour for which he has worked in excess at the overtime rate.
Bidi and Cigar Workers (Conditions of Employment) Act, 1966
Under Sec. 17 & 18 of the Act relating to working hours, it is mentioned that the period of work including over time work should not exceed 10 hours in a day and 54 hours in a week.
Contract Labo
ur (Regulation & Abolition) Act, 1970As per Rule 79 of the Act, it is compulsory for every contractor to maintain a Register of Overtime in Form XXIII which will contain all details relating to overtime calculation, hours of extra work, name of employee, etc.
Building and Other Construction Workers (Regulation of Employment Service) Act, 1996
Under Section 28 & 29 of the Act, it is mentioned that worker who is working overtime will be paid Overtime wages at the rate of twice the ordinary rate of wages.
Working Journalist (Conditions of Service) and Miscellaneous Provisions Act, 1955
As per Rule 10 of the Act, it is mentioned that a working journalist who works for more than 6 hours on any day in day shift and more than 5½ hours in night shift shall be compensated with rest hours equal to hours for which he/she has worked overtime.
Plantation Labo
ur Act, 1951As per section 19 of the Act where an adult worker works in any plantation on any day in excess of the number of hours constituting a normal working day or for more than 48 hours in any week, he/she shall, in respect of such overtime work, be entitled to twice the rates of ordinary wages. Provided that no such worker shall be allowed to work for more than 9 hours on any day and more than 54 hours in any week.
What is said about work on short notice?
As per the Chapter VI of the Factories Act, 1948, the notice period of work, fixed in accordance with the provisions of Act should be displayed in the factory. It also mentions that any proposed change should be notified to the Inspector, before the change is made.
Women and work hours
What are provisions relating to work time of women under the law?
Section 66 of the Factories Act, 1948 imposes restriction on employment of women to work between 7.00 pm to 6.00 am. However, the Chief Inspector is empowered to grant relaxation, but in that case women are not permitted to work between 10.00 pm to 5.00 am.
Work days & break period
What does the law say about working days?
Factories Act, 1948 specifies that weekly holiday on the first day of the week, which is Sunday or may be any other day, as may be approved in writing by the Chief Inspector of Factories, for a particular area is necessary.
Under Section 52, there is provision for substitution of weekly holiday so that by complying with the requirements of this section, workers may be permitted to work on the day of weekly holiday. Provision also specifies on allowing compensatory holiday, in lieu of unavailed weekly holiday.
What does the law say about breaks?
As per the provisions of the Factories Act, 1948 a rest interval of at least half an hour should be provided, in such a way that no period of work shall exceed 5-1/2 hours.
According to Minimum Wages Act, the working day of an adult worker shall be so arranged that inclusive of the interval of rest it shall not exceed 12 hours on any day.
Work hours for young workers
What are the provisions relating to work time for young person?
The young person as per provision of Factories Act, 1948 is defined as “child” or “adolescent” (a person who has completed 15 years of age, but not completed 18 years of age). It mentions that working hours of child workers are limited to 4-1/2 hours a day. It also specifies that the spread-over should not exceed 5 hours. The provisions of the Act also specify that female child workers are prohibited to work between 7.00 pm to 8.00 am as per Section 71.
As per the Minimum Wages Act, 1948 the number of hours of work for adolescent shall be fixed by the medical practitioner as approved by the Government, which be decided on consideration of adolescent as an adult or child. The child should, however, not be allowed to work for more than 4-1/2 hours on any day.
The Apprentices Act, 1961
· The act mentions that the daily hours of work of an apprentice shall not be more than 8 hours per day and weekly hours not less than 40 hours but not more than 45 hours. However, a short term apprentice may however be engaged to work up to a maximum limit of 48 hours per week. The hours of training of apprentice should not be between 10.00 pm to 6.00 am except with the prior approval from the Apprentice Advisor.
i. Minimum wage
Minimum Wage in India
Legislative protection for workers to receive a minimum wage, can be considered as the hall mark of any progressive nation. It is one of the fundamental premises of decent work. In India, the Minimum Wages Act, 1948 provides for fixation and enforcement of minimum wages in respect of scheduled employments.
The Act aims to prevent sweating or exploitation of labour1( According to the NSSO (2004-05) 61st round, around 395 million workers (86%) out of the total workforce of around 457 million workers constitute the unorganized/informal sector. In fact 7% of those employed in organized sector has been identified as informal workers raising the toll of informal sector to 422 million (92%). )through payment of low wages by ensuring a minimum subsistence wage for workers. The Act also requires the appropriate government (both at Centre and States) to fix minimum rates of wages in respect of employments specified in the schedule and also review and revise the same at intervals not exceeding five years.
Currently, the number of scheduled employments in the Central sphere is 45 whereas in the States sphere the number is 1650 (when all states are counted). With effect from November 2009, the National Floor Level of Minimum Wage has been increased to Rs 137 to Rs 100 per day (which was in effect since 2007). From July 1, 2015 the National Floor Level of Minimum Wage has been raised to Rs 160 per day.
Since the respective state governments have been empowered to independently fix minimum wages, disparities between wages in neighboring states are common. In order to reduce this problem and bring comparability the Central government has set up 5 regional committees (table below)2 for harmonization of minimum wages.- 5 Regional Committees in India
Current Minimum Wages
Region
States/UTs covered
Eastern Region (6)
West Bengal, Orissa, Bihar, Jharkhand, Chhattisgarh and Andaman and Nicobar Islands.
North Eastern Region (8)
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
Southern Region (6)
Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Puducherry and Lakshadweep.
Northern Region (9)
Punjab, Rajasthan, Himachal Pradesh, Jammu and Kashmir, Haryana, Uttar Pradesh, Uttrakhand, Delhi and
Chandigarh.Western Region (6)
Maharashtra, Gujarat, Goa, Madhya Pradesh, Dadra and Nagar Haveli and Daman and Diu.
Disclaimer : Minimum Wages have been provided by the Labo
ur Departments of respective states. All efforts have been made to update the minimum wage data on a regular basis. However, there might be unforeseen errors.
Data collected by Paycheck India.Source: Growth Pole Programme for Unorganized Sector Enterprise Development by NCEUS, April 2009
Press Information Bureau, GOI.The Payment of Wages Act 1936 requires that employees receive wages, on time, and without any unauthorized deductions. Section 6 requires that people are paid in money rather than in kind. The law also provides the tax withholdings the employer must deduct and pay to the central or state government before distributing the wages.[9]
The Minimum Wages Act 1948 sets wages for the different economic sectors that it states it will cover. It leaves a large number of workers unregulated. Central and state governments have discretion to set wages according to kind of work and location, and they range between as much as ₹ 143 to 1120 per day for work in the so-called central sphere. State governments have their own minimum wage schedules.[10]
The Payment of Gratuity Act 1972 applies to establishments with 10 or more workers. Gratuity is payable to the employee if he or she resigns or retires. The Indian government mandates that this payment be at the rate of 15 days salary of the employee for each completed year of service subject to a maximum of ₹ 1000000.[11]
The Payment of Bonus Act 1965, which applies only to enterprises with over 20 people, requires bonuses are paid out of profits based on productivity. The minimum bonus is currently 8.33 per cent of salary.[12]
Weekly Holidays Act 1942 Beedi and Cigar Workers Act 1967
i. Restrictions on working time
See above
ii. Rest breaks
Rest and Lunch Breaks
What does ILO say about rest breaks?
ILO conventions do not clearly provide for rest intervals/breaks during working hours, however, national labor legislation usually provides for these breaks in order to maintain health & safety and well being of workers. Workers need these breaks for rest, meals and religious activities. In most of the countries, rest breaks are unpaid hours of work because workers during these breaks are not at the disposal of their employer. However, some countries count these rest breaks as part of the working hours. The table below shows data on rest break duration and total working time qualification leading to rest breaks.
India
30 minutes break
On completion of 5 hours of work
i. Shift workers
Women are now permitted to work night shifts too (10 pm to 6 am)
Overtime Compensation
In accordance with the Factories Act 1948, normal working hours are 9 hours per day and 48 hours per week. Working hours for young workers are 4.5 hours per day.
Adult workers may be required to work beyond the stipulated working hours, i.e., 9 hours a day and 48 hours a week. The compensation for overtime work is twice the regular rate of his ordinary pay (200% of the regular wage rate). Ordinary rate of wages includes the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of food grains and other articles, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work.
The periods of work must be fixed in such a way that no period should exceed five hours (exemption can be granted to extend this period to 6 hours). A worker must get a rest interval of at least half an hour (30 minutes) after at most five hours of work. The total spread over (of working hours) inclusive of rest breaks and overtime cannot exceed ten and a half hours in any day. This means that an overtime of 2 hours is allowed per day. The Chief Inspector is authorized to extend this spread over, for reasons specified in writing, to 12 hours.
An employee may not be required to work overtime on short notice without prior intimation. Period of work, fixed in accordance with the provisions of Act, should be properly notified and displayed in the factory. Any proposed change should be notified to the Inspector, before the change is made.
Source: § 51-63 of Factories Act 1948ii. Holiday entitlement
Compensatory Holidays / Rest Days
In extraordinary circumstances, workers may perform work on weekly rest days and public holidays. If workers lost their weekly rest days due to the exemption granted to an establishment under section 52 of the Factories Act, these workers must be provided with compensatory rest days within the following 2 months.
There is no provision for compensatory holiday for workers working on a public holiday.
Source: §53 of Factories Act, 1948
Weekend / Public Holiday Work Compensation
Workers may be required to work on weekly rest days and public holidays. There is no Central level legislation in this respect. Different State level Acts (National and Festival Holiday Acts) provide that in such circumstances when workers have to work on official holidays, they are entitled to receive wages at a premium rate of 200% of the normal hourly wage rate. Workers working on weekly rest days are entitled to premium pay at the rate of 200% of the normal wage rate. A worker may be provided twice the wages for working on a public holiday or may be provided with a substitute holiday with pay. A worker who is required to work on a rest day must be paid wages at the overtime rates (twice the rate of wages).
Source: §23 (4) of the Minimum Wages (Central) Rules 1950; §5 of the Karnataka Industrial Establishments (National and Festival Holidays) Act 1963; §5 of The Punjab Industrial Establishment (National and Festival Holidays and Casual and Sick Leave) Act 1965
Annual Leave and Holidays
Paid Vacation / Annual Leave
The Factories Act has provided annual/earned leave of 12 working days for all the workers who have worked at least 240 days in a year. However, the duration of earned/annual leave differs for the adult and child workers. An adult worker is entitled to one day of earned leave for every 20 days of service while a child worker (under the age of 15 years) is entitled to one day of earned leave for every 15 days of service.
Workers are paid their usual daily wage rates for the days of earned leave. A worker is paid his full daily wages during the term of annual leave. Daily wages are the average of his total
fullfull-time earnings for the day on which he actually worked during the months immediately preceding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of advantage accruing through the concessional sale to the worker of food grains and other articles.If a worker takes four or more days' leave at a time, his wages are paid before the leave begins. The employer, the works committee and the Chief Inspector of factories determine the schedule of leaves by mutual consensus to ensure continuity of work. A worker may take all or portion of annual leave provided that he/she notifies the employer in writing at least 15 days prior to the date of availing annual leave and such request may not be refused unless it contradicts with the scheme of leave already agreed. Even when in portions, annual leave cannot be taken more than three times a year.
Annual leave may be carried over however no more than 30 days can be carried over to the next year. If the employment contract expires before a worker could take annual leave, compensation for leave is made in proportion to the number of months and numbers of hours worked in a week.
Source: §79-82 of Factories Act 1948
Pay on Public Holidays
Workers are entitled to paid days-off during Festival (public and religious) holidays. These include memorial holidays and religious holidays.
There are many festival and religious holidays in India however only three of these are fully covered national public holidays. These are Republic Day (January 26), Independence Day (August 15) and Mahatama Gandhi's Birthday (October 2). ( National and Festival Holiday Act & www.qppstudio.net)
Weekly Rest Days
The Factories Act provides provision on weekly rest. Workers are generally entitled to at least 24 hours of weekly rest on the first day of the week, i.e., Sunday. The weekly rest period is reckoned as a paid time.
Workers may be required to work on weekly holiday; in this case, he/she is entitled to the substitute holiday three days before or after the usual weekly holiday. Even in the case of holiday substitution, workers must be given a weekly holiday in every 10 days. If an organization is exempted from the provision related to weekly holiday and workers are not granted their weekly holidays, an equal number of compensatory holidays have to be granted within 2 months.
Source: § 52-53 of Factories Act 1948
Regulations on Annual Leave
a. Illness and injury of employees
i. Rights employees have to time off in the case of illness or injury
ii. Recovery of sick pay from the state
Sick Leave
Income
Workers covered by the ‘Employee State Insurance Act’ are entitled to sick pay, but only a small proportion of the organized work force is covered by social security legislation. Amount of sick pay varies; it is around 70% of the average daily wage. The benefit is paid after a 2-day waiting period for up to 91 days in any two consecutive designated 6-month periods.
Different provisions could be located under different Acts:
(i) 15 days of sick leave is entitled under Apprentices Act, 1961
(ii) 30 days of sick leave for 18 months of service under Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955;
(iii)At least 1/18th of the period worked under Sales Promotion Employees (Conditions of Service) Act, 1976. (http://www.esic.nic.in/benefits.php)
Source: §15 (Rule 13) of the Apprentices Act 1961; Working Journalist and Other News Paper Employee’s (Conditions of Service); §7 (Rule 28) of the Miscellaneous Provisions Act 1955); §4 of the Sales Promotion Employees (Conditions of Service) Act 1976
Medical Care
Full medical care is provided to an Insured person and his family members. There is no ceiling on expenditure on the treatment of an insured person or a family member. On payment of annual premium of 120 rupees, medical care is also provided to retired and permanently disabled insured persons and their spouses. (http://www.esic.nic.in/benefits.php)
Job Security
There is no legislation in this respect.
Regulations on Sick Leave
- Employees' State Insurance Act, 1948
b. Statutory rights of parents and carers
i. Maternity rights
Maternity and Work
Maternity Leave
According to the Maternity Benefit Act female workers are entitled to a maximum of 12 weeks (84 days) of maternity leave. Out of these 12 weeks, six weeks leave is post-natal leave. In case of miscarriage or medical termination of pregnancy, a worker is entitled to six weeks of paid maternity leave. Employees are also entitled to one additional month of paid leave in case of complications arising due to pregnancy, delivery, premature birth, miscarriage, medical termination or a tubectomy operation (two weeks in this case).
Female civil servants are entitled to maternity leave for a period of 180 days for their first two live born children.
Source: §6-10 of the Maternity Benefits Act 1961; §43 of the Central Civil Service (Leave) Rules 1972
Income
The maternity leave is awarded with full pay on completion of at least 80 days in an establishment in the 12 months prior to her expected date of delivery. The maternity benefit is awarded at the rate of the average daily wage for the period of a worker's actual absence from work. Apart from 12 weeks of salary, a female worker is entitled to a medical bonus of 3,500 Indian rupees.
Source: §5 of the Maternity Benefits Act 1961
Free Medical Care
A pregnant women worker is entitled to a maternity benefit (in the form of medical bonus) of one thousand rupees if no prenatal confinement and post-natal care is provided by the employer free of charge
.. It can be increased to a maximum limit of twenty thousand rupees. The Central Government is authorized to increase the basic amount every three years. In August 2008, the amount of medical bonus was 2500 Indian rupees which has been later raised in 2011 to 3500 Indian rupees.Source: § 8 of the Maternity Benefits Act 1961
Regulations on Maternity and Work
- Maternity Benefit Act,1961
ii. Paternity rights
iii. Carers' rights
Family Responsibilities
Paternity Leave
There is no provision on paternity leave in Indian labo
ur law for private sector workers. The civil servants (Central Government) however are entitled to paternity leave. A male civil servant (including an apprentice, probationer) with less than two surviving children, may be granted Paternity LeaveSource: Rule 43-A & 43-AA of Central Civil Services (Leave) Rules, 1972
Parental Leave
There is no provision for parental leave in Indian labo
ur law.Flexible Work Option for Parents / Work-Life Balance
There is no provision for flexible work option for workers with minor children and other family responsibilities.
Regulations on Family Responsibilities
- Factories Act, 1948
f. Recruitment
i. Grants or incentives available for employing people
ii. Filings
g. Background checks
. India
Background Screening is allowed in India. India has developed a very successful market for talent development over the past decade. They are more committed to aligning Indian recruitment and pre-employment screening with the best in the world and continue to develop best practices. Driven by visionary Indian companies, India has become a go-to market for many global companies. India has a large, very well educated pool of talent and many companies around the world have recognized this skill.
However, this talented market has also brought some challenges. There have been very high incidences of resume (Curriculum Vitae) fraud. This fraud ranges from minimal risk consequences such as overstating technical skills, lies about previous employment, and lies about academic diplomas, to the much more severe and critical risk consequences including financial fraud.
As a result, background screening of applicants is becoming a standard accepted practice in India for larger firms and is starting to develop for smaller local companies.
What you need to know:
· Contingent employment can be granted during a period while background screening is being conducted.
· The level of responsibility the candidate will hold will help determine the extent and depth of the background screen.
· Education and Employment checks are very common practice.
Justifacts has implemented a comprehensive program to ensure companies hire the right employee quickly and intelligently.
Through years of research and implementation in India, best practices for background screening should include:
Employment Checks
· Verifying past employment requires an Employee ID# and/or Experience Certificate/Relieving Letter in addition to the Applicant’s Consent
· This is due in part to the High Turnover, Differing Data Retention periods, Non-standardization of name writing and common names
Education Checks
· Obtaining a valid degree/diploma facilitates validating educational credentials
· There is no unique numerical identifier like a Social Security Number in the US
· There is a reluctance of institutions to utilize electronic data storage
· Most universities insist on issuing paper copies only of degrees or diplomas
· Academic references require the correct diploma numbers, with copies of the original diploma sometimes required in order to prevent fraud and ensure accurate verification.
Legislation pertaining to background checks in India:
· The India Contract Act
· India Information Technology Act, 2000
· India Information Technology Act, 2005
· The Indian Penal Code
Justifacts has adopted a very conservative approach in India in order to ensure respect for individuals, protect their privacy and protect their personal information. Although not required, principles of the Fair Credit Reporting Act and the European Union Safe Harbor Act have been adopted to ensure stringent privacy and protection.
Justifacts will only perform these services with the candidate’s furnished and signed consent, within the appropriate federal and provincial regulations, within the Justifacts privacy and data security guidelines and according to our customer’s policies and procedures.Justifacts Best Practice Requirements = Best Practice Results
The process for completing background checks in India, including employment and academic references, has become more standard. However, at Justifacts our Best Practice program assists in providing our client’s higher quality results. By obtaining as much information up front with the applicant, Justifacts is able to improve turnaround time and provide the most accurate results.
Education Requirements
· Copy of degree and transcript
· Authorization
Employment Requirements
· Copy of work experience/relieving letter
· Employee ID
· Authorization
Criminal Record Requirements
· Local Address to search
· Authorization
Understanding and navigating India’s screening market and locating the appropriate channels to ensure data reliability can be time consuming and financially burdensome. Allowing Justifacts to partner with you ensures that you will be able to implement a high quality, best practice background screening program.
h. Labor Relations
i. Regulation of the employment relationship
Employment Security
Written Employment Particulars
There is no provision in the above labo
ur law that requires an employer to provide a written statement of particulars to a newly hired employee. However a written appointment letter or employment contract is signed between the employer and the worker as a matter of practice.The written document may contain the following information: name and address of the employer; name and address of the employee; title of the job or nature of work to be performed by the employee (or job description); place of work and hours of work; and probation, if any, and its term, etc. The employers may also incorporate the following information into employment contract: option of the employer to transfer an employee from one office to another branch office, affiliate, etc.; date of commencement of employment; wages or salary details (overtime wages); any benefits that an employee is entitled to (gratuity, provident fund and pension); type of contract – permanent or fixed-term; period of notice required for termination of employment; leave entitlement; conditions under which the employer can terminate the contract; and non-compete, confidentiality and non-solicitation provisions, etc.
Fixed Term Contracts
Indian labo
ur Law allows hiring fixed term contract workers for tasks of permanent nature. There is no maximum length of fixed term contracts provided under the labour laws.Employment of contract labo
ur is allowed under the Contract Labour (Regulation And Abolition) Act, 1970. The Central Government (or Provincial Government) may, after consultation with the Central Board or a State Board, prohibit, employment of contract labour in any process, operation or other work in any establishment while considering the following factors:(a) whether the process, operation or other work is incidental to, or necessary for the activity that is carried on in the establishment: (b) whether it is of perennial nature, it is of sufficient duration having regard to the nature of activity carried on in that establishment; (c) whether it is done ordinarily through regular workmen in that establishment or an establishment similar thereto; (d) whether it is sufficient to employ considerable number of whole-time workmen.
sources: §1&10 of the Contract Labo
ur (Regulation And Abolition) Act, 1970Probation Period
Under section 2 of the Model Standing Order, probation period is usually 6 months however it can be extended by a by a period of three months at a time at the discretion of management. The maximum probation period can't exceed two years. A person is employed as a probationer generally to fill a permanent vacancy in a post. If a permanent employee is employed as a probationer in a new post he may, at any time during the probationary period, be reverted to his old permanent post.
Source: §2 of the Model Standing Orders
Regulations on Employment Security
- Factories Act, 1948
ii. Main points to consider if an employer wants to unilaterally change the terms and conditions of employment
c. Termination of Employment
Notice and Severance
Notice Requirement
The Industrial Dispute Act uses the term "retrenchment" instead of "termination". Retrenchment is defined as termination for any reason except as punishment inflicted by way of disciplinary action, retirement/superannuation, termination for continued ill-health, or expiry and non-renewal of the term of an employment contract.
Reasons for retrenchment could be redundancy, non-performance, or loss of confidence in the worker for various reasons. The Industrial Disputes Act also delineates the manner of retrenchment of workmen and provides a mechanism for the computation of their severance compensation. Workmen may be retrenched only for just cause and after complying with various statutory requirements, failing which the aggrieved workman or representatives of the workman can raise an industrial dispute in connection with the termination.
An employer is required to give at least one month's advance notice or payment in lieu thereof to a worker who has completed at least one year of continuous service before termination. The notice must be given in writing indicating the reason of retrenchment. While terminating a large number of employees in factories, mines or plantations employing more than 100 workmen, the employer must give at least three months of notice or wages in lieu thereof to the workmen proposed to be terminated.
The services of workmen as well as non-workmen can be terminated without any notice in situations, such as proven misconduct, fraud, etc. Termination proceeds with an internal enquiry in accordance with the principles of natural justice - where the employee is given a free and fair hearing.
Appeals could be made against wrongful termination. A workman can challenge his/her termination (retrenchment) before appropriate labo
ur authorities and seek reinstatement and/or compensation under the ID Act. A non-workman can take recourse only by instituting a civil suit against his/her employer for damages for wrongful termination.In case, it is proved that the termination/retrenchment is not proper, then based on various other criteria, the worker can be re-instated to his/her job with back wages.
Courts in India have held that a worker is entitled to exercise his right to resign from the employment. An employer may be justified in refusing to accept the worker's resignation in limited cases, such as, when a worker wants to leave in the middle of work which is urgent or important and for the completion of which his presence and participation are necessary. An employer can also refuse to accept the resignation when there is a disciplinary inquiry pending against the employee.
Source: § 2, 25(F-N) of Industrial Disputes Act 1947; § 15 of the Model Standing Orders
Severance Pay
In accordance with the Payment of Gratuity Act 1972, a worker is entitled to a gratuity payment upon termination of his service after five years of continuous employment.
Amount of severance pay is equal to 15 days' wages for each completed year of service. Under the Industrial Disputes Act, retrenched workers are entitled to 15 days' wages for each completed year of service.
Source: §25(F) of Industrial Disputes Act 1947; §4 of the Payment of Gratuity Act 1972
d. Rights do employees have when their employment contract is terminated
i.Summary dismissal
ii. Severance payments
Accrued wages
g . Procedural Requirements for Dismissal
i.Protection against dismissal
(a) Protected employees
Some of India's most controversial labo
ur laws concern the procedures for dismissal contained in the Industrial Disputes Act 1947. A workmen who has been employed for over a year can only be dismissed if permission is sought from and granted by the appropriate government office.[27] Additionally, before dismissal, valid reasons must be given, and there is a wait of at least two months for government permission, before a lawful termination can take effect. Redundancy pay must be given, set at 15 days' average pay for each complete year of continuous service. An employee who has worked for 4 years in addition to various notices and due process, must be paid a minimum of the employee's wage equivalent to 60 days before retrenchment, if the government grants the employer a permission to lay off.A permanent worker can be terminated only for proven misconduct or for habitual absence.[28] The Industrial Disputes Act (1947) requires companies employing more than 100 workers to seek government approval before they can fire employees or close down.[5] In practice, permissions for firing employees are seldom granted.[5] Indian laws require a company to get permission for dismissing workers with plant closing, even if it is necessary for economic reasons. The government may grant or deny permission for closing, even if the company is losing money on the operation.
The dismissed worker has a right to appeal, even if the government has granted the dismissal application. Indian labo
ur regulations provide for a number of appeal and adjudicating authorities – conciliation officers, conciliation boards, courts of inquiry, labour courts, industrial tribunals and the national industrial tribunal – under the Industrial Disputes Act.[30] These involve complex procedures. Beyond these labo
ur appeal and adjucating procedures, the case can proceed to respective State High Court or finally the Supreme Court of India.· Bharat Forge Co Ltd v Uttam Manohar Nakate [2005] INSC 45, a worker found sleeping for the fourth time in 1983. Bharat Forge initiated disciplinary proceedings under the Industrial Employment Act (1946). After five months of proceedings, the worker was found guilty and dismissed. The worker appealed to the labo
ur court, pleading that his dismissal was unfair under Indian Labour laws. The labour court sided with the worker, directed he be reinstated, with 50% back wages. The case went through several rounds of appeal and up through India's court system. After 22 years (ahem ahem), the Supreme Court of India upheld his dismissal in 2005.[31]Unemployment[
edit]
ii. Redundancy/layoff
If you mean to say that there is lay off due to reasons mentioned by me in my earlier post, then all those who are laid off will be getting lay off compensation at the rate of 50% of salary for 45 days.
If you mean to say that there is a permanent closure and thereby all are asked to leave the company, then it is not lay off but retrenchment. In such scenario those who have worked for at least one year will get compensation. The retrenchment compensation will be equal to 15 days salary for every completed year of service. Fraction of a year more than 6 months shall be taken as one year. In addition to the above, one month notice is also required to be given to each employee. In case no notice is given, the employees should be paid one month salary in lieu of notice. This will be two months in case there is a closure of establishment. Again, in the case of an establishment employing more than 100 employees, the notice pay is three months.
In addition to the above, each employee who has worked for 5 years or otherwise eligible for gratuity should get gratuity at the prescribed rate of 15 days salary for every competed year of service.SUMMARY
Relative regulations and rigidity in labor laws
Practice required by law
Minimum wage (US$/month)
45 (INR 2500/month)[85]
182.5
1242.6
Standard work day
9 hours
8 hours
8 hours
Minimum rest while at work
30 minutes per 5-hour
None
None
Maximum overtime limit
200 hours per year
432 hours per year
None
Premium pay for overtime
100%
50%
50%
Dismissal due to redundancy allowed?
Yes, if approved by government
Yes, without approval of government
Yes, without approval of government
Government approval required for 1 person
Yes
No
No
Government approval required for 9 person
Yes
No
No
Government approval for redundancy dismissal granted
Rarely[71]
Not applicable
Not applicable
Dismissal priority rules regulated
Yes
Yes
No
Severance pay for redundancy dismissal
of employee with 1-year tenure2.1 week salary
4.3-week salary
None
Severance pay for redundancy dismissal
of employee with 5-year tenure10.7-week salary
21.7-week salary
None
- the total period of the stay in India does not exceed 90 days in a financial year
-
Foreign Employee Requirements
a. Permission to work
i. Prior approvals required for foreign nationals to work in India
b. Visa
India Business visa in the contents of "Laws applicable to foreign nationals"
15. Labor Laws in India can be a challenge for many foreigners who start a business in India for the first time. The tricks to avoid much of labor trouble in India can be summed up as follows:
a) Do not employ anyone with a salary of less than Rs. 10,000- per month. If you can keep all your employees above Rs. 15,000 per month, that is even better.
b) Keep the number of employees on your rolls to a bare minimum. This can be done by outsourcing all that is either not critical or not specific to your business.
c) If it is possible, keep the number of employees less than 20.
If you are able to ensure that you do not have any employees earning less than Rs. 10,000- per month, the only (well, almost, the only) labor laws that will be applicable to you are as follows:
The Employees’ State Insurance Act, 1948
– applicable when number of employees is ten or more and only to employees earning less than Rs. 15,000 p.m. and in some areas of the country
– applicable when number of employees is ten or more The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
– applicable when number of employees is twenty or more A quick glance at the three laws is as follows:
The Employees’ State Insurance Act, 1948 Employer is required to deduct 1.75% of employee’s salary and add 4.75% of the salary from his side. Total contribution to be deposited is 6.5% of salary of all employees earning less than Rs. 15,000- per month. Employees covered by the insurance receive medical benefits as well as all insurance benefits. Guide For Foreign Nationals Wanting to do Business in India March 2016 © Anil Chawla Law Associates LLP Page No. 55 Payment of Gratuity Act, 1972.
Under the Act, the employer is required to pay gratuity to an employee as and when he leaves employment either on termination or resignation or superannuation or death of an employee if the employee has worked for a continuous period of five years or more. For every completed year of service or part thereof in excess of six months, gratuity is payable at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned.
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Employer is required to deduct 10% of the salary of employee, add equal amount of contribution from its side and deposit the total with provident fund. The employee can withdraw from provident fund either when he / she is out of job or at the time of retirement or under some other emergencies. In addition to the above, irrespective of the number of employees if your unit is not a factory it will need to be registered with labor department under the relevant state’s Shops and Establishment Act. Different states have different provisions under their Shops and Establishment Acts.
However, in general the Acts provide for working hours, holidays and leaves of employees. In case the nature of your business requires you to employ large number of workers, many of whom are earning less than Rs. 10,000- per month, you should be prepared to deal with all the labo
ur related matters including unions. If this is the case, you should either partner with an Indian associate who understands Indian workers and related laws or you should get a professional manager who is an expert on such matters.What is FEMA?
FEMA is the Indian law which consolidates the rules relating to foreign exchange in India. It enables a new foreign exchange management regime consistent with the emerging framework of the World Trade Organisation (WTO). The requirements and regulations governing the buying and selling of property by any foreign national are covered in this Act. FEMA welcomes investment in property in India by NRIs, PIOs and in some cases, foreign nationals residing in India.
Can an NRI or a PIO acquire immovable property in India?
An NRI or a PIO can acquire immovable property in India. However, investment in agricultural property, plantation and investment in farmhouses are prohibited under FEMA for all classes of persons resident outside India, including Non-resident Indians or foreign citizens or any foreign entities.
What are the provisions for the companies to invest in immovable property in India?
Foreign companies who have been permitted to open a Branch or Project Office in India are also allowed to acquire any immovable property in India. In order to make the purchase, prior permission from the Reserve Bank of India has to be obtained. It has to be proved that the acquisition of the property is necessary for carrying on the business activity for such an entity.
How can an NRI or a PIO acquire property other than agricultural land or plantation property?
If an NRI or a PIO wants to acquire immovable property in India, other than agricultural land or, plantation property or farm house, it can acquire the property in any of the following ways:- 1) By using the funds held in any type of non-resident bank accounts to make the purchase. 2) By receiving the property as a gift from a person resident in India or non-resident Indian citizen or even a non-resident PIO. 3) By inheriting the property from persons who are eligible to give such inheritance. PIOs can transfer immovable property in India either by way of sale to person resident in India (whether Indian citizen or not) or by way of gift or sale to an Indian citizen resident in India.
Can a foreign national invest in property in India?
Let’s take the example of Mr Greenwood, a British national, who is posted in India for work. He wants to buy property in India. He is not permitted to acquire any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he can acquire or transfer immovable property in India, on lease, not exceeding five years without the prior permission of the Reserve Bank.
The Act does however restrict any citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan (whether resident in India or not) from acquiring or transferring immovable property in India without prior permission of the Reserve Bank. Such people can only take the property on lease, for not exceeding five years.Are there any restrictions on an NRI to buy property in India?
If Mrs Desai who has been living in UK for the last 35 years and holds an Indian passport, wants to buy immovable property in India, there are no restrictions on her from making such an acquisition. As the NRI community is developing a keen interest in making investments in India which can reap good returns, many developers and government agencies across different states in the country are coming up with attractive schemes for such investors.
How does my ‘residential status’ get determined?
Under FEMA, acquisition of property in India is governed by ‘residential status’, this means that the place of residence of an individual becomes a key to determining property ownership. For example, if Mr Shah is a UK citizen but has been residing in India, he can make a case for Indian residency. The residential status is determined by operation of law. A person is said to be a resident in India if he stays in India for an aggregate period of 182 days in a year. The obligation is on the individual to prove his / her residential status, if questioned by any authority, i.e. Mr Shah will have to provide substantial evidence to showcase his Indian residency as per Indian laws.
Legal rights of Women
· Only female officers can escort women to the police station. If there isn’t one, DON’T GO
· Not only do male officers have no right to escort a woman but she can refuse to go to the police station between 6 pm to 6 am. In case of a serious crime, a written permit from the magistrate is required for male officers to escort her
· Women can lodge complaints through emails at ncw@nic.in, our National Commission for Women.
· Guidelines issued by the Delhi Police entitle women to the privilege of registering a complaint via email or even through post if she can’t go to the police station. Just do a quick internet search to get the contact details of your local police station
Public Protocol
· PDA: A lot of the issues in Indian law stem from the fact that the vague wording of the Indian Penal Code gives the cops an unfair amount of wiggle room. While in the cities you might find rows of couples making out beneath skimpy scarves by the shoreline, more rural areas can tend to object to even holding hands or a peck on the cheek. Always try to gauge the atmosphere first, and if reprimanded by a police officer be apologetic to the point of grovelling, as rudeness and high-handedness will get you nowhere. Nudity or going topless in public is never an option at any beach, and on certain beaches in South India which are home to religious sites bikinis are best avoided as well to avoid giving offence.
· Public Nuisance: Section 268 defines this as “an illegal omission which causes any common injury, danger or annoyance to the public or to the people in general.” Note the use of the term ‘annoyance’, again widely open for interpretation. Avoid disturbing residents with loud noises, public drunkenness or anything that could be construed as vandalism. Sexual harassment is never appreciated either.
· Homosexuality: In 2013, the Indian Supreme Court brought back Section 377, a controversial law that penalizes “unnatural sex”. While most see this as a direct criminalization of homosexuality, it has two further consequences: LGBTQ individuals who DO NOT indulge in any kind of sexual activity while in the country may still find themselves harassed if their sexuality is made public. That said, there are several NGOs and other organizations working for the community that will always lend support such as The Lawyers Collective. The second implication is that straight couples caught engaging in anal and oral sex are technically also punishable under this law, which deems only peno-vaginal penetration as legal. While it’s highly unlikely that the police are going to burst into your room and pull back the covers, it’s always good to know exactly where you stand with the law.
· Recording: You obviously want a trove of videos and photographs to take home, and India provides a multitude of photo ops, but try and be a little careful in sensitive areas. Military and government zones, crowed airports and railway stations are always on high alert for security threats, you don’t want to be mistaken for one. If there’s any chance you’re carrying binoculars, put those away as well.
Substance laws
· Alcohol: The legal age for drinking varies from state to state from 18 to 25, so do some local research before you go. A distinction is usually made between mild liquor (beer and wine) and hard (spirits). Avoid any local liquors not vetted by your hotel manager or tour guide, and again, no public drunkenness. If an election is nearing, alcohol may be banned for a couple of days prior, and days of local religious or political significance are also usually dry. Some states are dry year round, or require a permit to buy, transport or consume alcohol. Carriage of alcohol between states is often illegal due to the varying alcohol laws, you may be stopped for a random check.
· Drugs: Unequivocally illegal. Cigarettes and chewing tobacco are available on every street corner and don’t carry much social stigma, but for anything else there is a minimum sentence of 6 months for possession of small amounts deemed for personal consumption only, and a 10-year sentence for possession of anything sufficient for trafficking. Convicted offenders can expect fines and a minimum jail sentence of 10 years.
· Beef: In 2015, several states declared a blanket ban on export, import and sale of beef and beef products, a continuation of the prevention of cow slaughter laws. Deliberate killing or maiming of a cow can attract a five year prison sentence, so be careful when you drive!
Contraband
· Transport and possession of firearms, antiquities, electronic equipment, local currency, ivory, gold objects and pornographic materials are all regulated by the government. Non-residents are prohibited from importing or exporting the Indian rupee, while limits are imposed on residents. For more information, consult India’s Central Board of Excise and Customs. Antiques, specifically, must be registered with local police, along with a photograph of each item. Satellite phones are illegal.
Identification
· Carry your passport with you at all times, you will require it for all check-ins at hotels or airports. If you’re brave enough to drive in Indian traffic, make sure you have an international driving permit and a helmet for motorcyclists and passengers.
Business visa to Employment visa for working in India
Address: Embassy of India, 2-2-11 Kudan-Minami, Chiyoda-ku, Tokyo 102-0074.
Working hours: 0900 hours to 1730 hours (Monday to Friday)
Telephone Numbers: +81 3 3262-2391 to 97 Fax Number: +81 3 323
VISA-ON-ARRIVAL FOR JAPANESE NATIONALS w.e.f. 01 MARCH, 2016 (updated as of November 14, 2016)
Eligibility
Visa-on-Arrival is granted to a Japanese national -
(i) who is visiting India for a period not exceeding 30 days and for business, tourism, conference and medical purposes;
(ii) who does not have a residence or occupation in India;
(iii) who holds a passport with a minimum validity of six months;
(iv) who is a person of assured financial standing (the production of a return ticket/onward journey ticket and availability of sufficient money to spend during his stay in India);
(v) who is not a persona-non-grata to the Government of India;
(vi) who is not considered an undesirable person;
Note:
1. This facility is not available to the citizens of Japan if the person or either of his/her parents or grandparents (paternal or maternal) was born in, or was permanently resident in Pakistan. Such persons can visit India only after obtaining an appropriate visa from the Indian Mission/Post concerned.
2. The Visa-on-Arrival facility is not be available to holders of Diplomatic/Official passports.
3. Visa-on-Arrival shall be non-extendable and non-convertible.
Validity
Visa-on-Arrival will be valid for entry and stay in India within the period of its validity subject to the conditions specified. The Immigration officer may grant a single entry Visa-on-Arrival valid up to 30 days to the citizens of Japan.
Entry Points:
Visa-on-Arrival is provided to Japanese nationals only at six designated International Airports namely, Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad.
Fee for Visa-on-Arrival
A fee of Rs. 2,000/- or equivalent in foreign currency per passenger (including children), will be charged from each Japanese national for the grant of Visa-on-Arrival.
Procedure for applying for Visa-on-Arrival
- Japanese nationals would be required to fill an application form (Annexure I). The format of the physical form will also be available from the airlines on board the flight. The Japanese nationals would be required to carry duly filled "VOA Application Form" along with duly filled Disembarkation Card.
- With the physical form, the Japanese nationals would approach the "Visa Counter". The Visa Officer will scrutinize the filled in application form, check eligibility criteria, purpose of visit, swipe the passport and key-in additional fields from the duly- filled application form in the application software.
- After checking the eligibility criteria, the Visa Granting Officer would put "SCRUTINISED” stamp on the physical application form and then the Japanese national would be directed for payment of fee.
- After payment of fee, Japanese nationals would approach the Immigration Counter wherein biometrics/image capturing would be done and payment details would be verified/stored.
- The Immigration officer would then stamp the passport and collect Disembarkation card.
- List of visa categories and supporting documents required (in addition to the visa application form described below)
- Visa application form should be signed by the applicant
- Passport should be valid for a minimum of six months beyond the date of intended entry into India.
- Normally, Visa is not given beyond the date of validity of passport.
- Passport should have at least two blank pages for affixing visa and the immigration stamps
- Non-Japanese applicants should bring their alien registration card along with a copy.
- Validity of visa starts from the date of its issue and not from the date of entry into India.
- Registration is required for certain categories of visa valid beyond 180 days. For detailed information, please check the Ministry of Home Affairs of Government of India website at WWW.IMMIGRATION.NIC.IN, which also provides other useful information regarding Temporary Landing Permits / Visa-On-Arrival / Visa Extension / Registration / Addresses of FRROs (Foreigners Regional Registration Offices) etc.
- It is advisable that visa should be applied well in advance of the intended date of travel to India.
Supporting Documents with Visa Applications
- Original and signed supporting documents like invitation letters, letter of admission, letter of recommendation etc. should be submitted. Only in exceptional cases, scanned copies of such documents may be accepted at the discretion of the Embassy.
- e-Mail communications are not acceptable as genuine supporting documents
- The onus of establishing the genuineness of a document would lie with the applicant
- All required supporting documents must be submitted with the visa application.
List of visa categories and supporting documents required (in addition to the visa applications form described above).
Business Visa (B)
All foreign nationals who are living in Japan less than two (2) years or those on “Temporary Visitor” are not eligible to apply for the Business Visa in Japan. The business visa application should be applied in the country of domicile only. 1. Visa Application Form (No column to be left unfilled). 1. 2. Original Invitation letter from company in India on company’s letter 2. head and duly signed by authorized person with his/her Name and 3. Designation and with company seal. 3 Original Recommendation letter from company in Japan on company’s letter head and duly signed by authorized person with his/her Name and Designation and with company seal. Duration & purpose of visit should be clearly mentioned on both above letters 4. 5. AIESEC (Applicable to Japanese citizen only) 1. Original Recommendation letter from AIESEC Japan and Invitation letter from AIESEC India. 2. Original Recommendation letter from company in Japan 3. Original letter from acceptance company in India (company registration may be required)
Conference Visa ( C)
Conference Visa covers symposium, seminar, summit, workshop, congress, etc. 1. Original Invitation letter from organizer in India 2. Original Recommendation letter from organization in Japan 3. Administrative approval of the Nodal Ministry / State Government 4. Event clearance from Ministry of Home Affairs in India 5. Political clearance from Ministry of External Affairs in India The following passport holders are strictly required to submit the additional documents as Event Clearance from Ministry of Home affairs with their respective name mentioned. Afghanistan, China, Iran, Iraq, Pakistan, Sudan, Foreigners of Pakistani origin, and Stateless persons
In addition to consular and visa fees chargeable and listed in Consular Services or Visa Fees as the case may be, there may be additional charges such as postal, telex and special charges, as applicable. The fees are to be paid in cash in Japanese Yen.
Postal Charges (applicable for Passport services)- Applicants sending their applications by post need to add JPY1000 per application.
- Those applying at the Embassy but seeking delivery by post should add JPY600.
- Postal charges are over and above the fee for the particular.
- The cash may be sent by cash registered mail (GENKIN KAKITOME).
- The applicants should also send a strong self addressed (but without stamps) envelope which would be used by the Embassy for returning the documents after due processing.
- Applicants seeking service through post should invariably indicate E-Mail ID etc. to facilitate contact with them in the event of there being some deficiency in the application, documents etc.
- It may be noted that the applicants send / seek delivery by post at their own risk. The Embassy uses registered post for dispatch of processed applications but is not responsible for any loss of documents.
Telex Charges (applicable for Visa applications)
The telex charges collected from foreigners for processing their visa applications depend upon nationality and place of their present stay and is chargeable as per the following table:Japanese living in cities under the jurisdiction on Embassy of India Tokyo
JPY 0
Non-Japanese foreigners living in Japan continuously for less than
five years / temporary visitors to JapanJPY 3000
Special Charges
There may be some other charges, for example, US citizens seeking Indian visa need to pay in addition an application fee which depends on the type of the visa and is generally JPY 2750.- List of visa categories and supporting documents required (in addition to the visa application form described below)
- Visa application form should be signed by the applicant
- Passport should be valid for a minimum of six months beyond the date of intended entry into India.
- Normally, Visa is not given beyond the date of validity of passport.
- Passport should have at least two blank pages for affixing visa and the immigration stamps
- Non-Japanese applicants should bring their alien registration card along with a copy.
- Validity of visa starts from the date of its issue and not from the date of entry into India.
- Registration is required for certain categories of visa valid beyond 180 days. For detailed information, please check the Ministry of Home Affairs of Government of India website at WWW.IMMIGRATION.NIC.IN, which also provides other useful information regarding Temporary Landing Permits / Visa-On-Arrival / Visa Extension / Registration / Addresses of FRROs (Foreigners Regional Registration Offices) etc.
- It is advisable that visa should be applied well in advance of the intended date of travel to India.
Supporting Documents with Visa Applications
- Original and signed supporting documents like invitation letters, letter of admission, letter of recommendation etc. should be submitted. Only in exceptional cases, scanned copies of such documents may be accepted at the discretion of the Embassy.
- e-Mail communications are not acceptable as genuine supporting documents
- The onus of establishing the genuineness of a document would lie with the applicant
- All required supporting documents must be submitted with the visa application.
List of visa categories and supporting documents required (in addition to the visa applications form described above).
I. General Rates of Visa Fee (applicable where country specific rates have not been prescribed)
Category of Visa
Fee (JPY)
1. Transit visa – valid for 15 days (single or double entry)
2,800
2. Tourist visa – 6 months, multiple entry **
5,500
3. Tourist visa – over 6 months up to 1 year, multiple entry
8,850
4. Tourist visa – over 1 year up to 5 years, multiple entry
17,700
5. Student visa – up to 5 years or duration of course whichever is less
10,200
6. All kinds of visa (other than transit, student and tourist visa) –multiple entry
(a) valid up to 6 months
11,000
(b) valid up to 1 year
16,450
(c) valid up to 5 years
27,400
** Note : In respect of Singapore Nationals , for tourist visa up to 6 months (multiple entry), fee would be JPY 3,750 .
NO AGENTS / HIRED REPRESENTATIVES ARE ALLOWED INSIDE FRRO OFFICE.
Registration is required for:
Every Foreigner visiting India on Student Visa(S) (including those coming for study of Yoga, Vedic Culture, Indian system of dance and Music), Research Visa(R), Medical Visa(M) or Medical Attendant (MED-X) Visa and Employment Visa(E) valid for more than 180 days is required to get himself / herself registered with concerned FRRO , within 14 days of his/her first arrival, irrespective of the duration of his / her stay. Even in other Visa types, if the Indian Visa has a stipulation/ observation/ Special endorsement for registration made by Indian Mission / Embassy on the Indian Visa and on Employment, Medical, Medical Attendant Visas for less than 180 days, the Foreigners are required to be registered
Foreigners visiting India on other categories of long term Visa (valid for more than 180 days) including Business/Entry(X) / Journalist Visa would not require registration with the concerned FRRO if duration of his/her
Children below 16 years of age are exempt from Registration if they have entered on PIO card or on any type of Visa and except where specified other
Late Registration:
No fee is charged for registration, but a foreigner who has delayed registration and if delay is condoned, a penalty in Indian currency equivalent to US$ 30/- for late registration may be charged.
Over stay:
In the event of overstay foreigner is liable for prosecution under Foreigners Act 1946 and imprisonment up to 5 years with fine & expulsion from India.
Report of absence from Registered Address
If at any time a foreigner proposes to be absent from his / her registered address for a continuous period of eight weeks or more or change his / her registered address then the foreigner is required to inform in person or through an authorized representative or by registered post to his / her Registration Officer of his / her intention to change his registered address or to leave either temporarily or permanently the jurisdiction of the Registration Officer. In case of return, the foreigner should inform the Registration Officer of the date of return and in case the foreigner is moving away inform the change of address. Any changes made subsequently should also be intimated to the Registration Officer. Every foreigner, who stays for a period of more than eight weeks at any place in any district other than the district in which his / her registered address is situated, shall inform the Registration Officer of that district of his / her presence. This can be made in writing and the requirements deemed to have been fulfilled if, prior to arrival the foreigner furnishes to the Registration Officer of the said district intimating the dates of his proposed arrival and departure from the district
Change in Registered address:
A foreigner shall be deemed to have changed his registered address, if he
Reports of other changes except address
Every foreigner is required to furnish to the Registration Officer of the district in which his registered address is situated, particulars of any circumstances affecting in any manner
Surrender of certificates of registration on departure
Every foreigner who is about to depart finally from
Duplicate certificate of registration:
If any certificate of registration, issued under existing Acts / Rules is
5(i) Business Visa
1. Photo
2. Passport & Visa
3. Residence Proof
4. Business Proof
5. RBI/ GOI Approval
6. Undertaking Letter
7. Incorporation Letter
8. Memorandum of Articles
9. DIN No.
10.PAN Card
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity)
4. Business related papers for authenticity
5. Permission letter from RBI/GOI in case of Joint Venture/ Collaboration
6. Undertaking letter by one of the Directors or authorized representatives of the company
7. Incorporation letter
8. 1
9. Page bearing Director’s Identification No.
10.Copy of PAN Card of the company
5(ii) Business Visa(AIESEC Intern)
1. Photo
2. Passport & Visa
3. Residence Proof
4. Approval from GOI for intern
5. AIESEC letter
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity)
4. Approval of Government of India
5. Letter from AIESEC
6(i) Entry (X) Visa for dependents of Employment Visa, Business Visa
1. Photo
2. Passport & Visa
3. Passport Principal Visa Holder
4. Residence Proof
5. Request letter
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Photo copy of the passport of the principal visa holder
4. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and 5
6. Undertaking letter photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity)
5. Request letter from the company for registration of the Spouse, Children of the foreigner who is employed by the company on Employment Visa
6. Undertaking from the company for registration for the Spouse, Children of the foreigner who is employed by the company on Employment Visa
6(ii) Entry (X) Visa (Spouse or dependent of Indian citizen/ Person of Indian Origin)
1. Photo
2. Passport & Visa
3. Passport of Principal Visa Holder
4. Residence Proof
5. Marriage Certificate
6. Proof of spouse/ dependent of PIO
7. Undertaking
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Photo copy of the passport of the principal visa holder
4. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity)
5. Marriage certificate issued by Registrar of Marriage or concerned Indian Mission abroad
6. Copy of Indian spouse passport/ PIO card/ OCI Card
7. Undertaking from the foreigner that he/she will not undertake employment or do business in India
6(iii) Entry (X) Visa (others)
1. Photo
2. Passport & Visa
3. Residence Proof
4. Other documents
5. Letter from Secretary, Auroville
6. Letter from Managing
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity) 6 Trustee of Shri Aurobindo Ashram
4. If coming for training in military establishment, a letter from defence establishments or from Ministry of Defence is mandatory. If coming for social community work sponsored by AIESEC under exchange program, a letter from AIESEC is mandatory to show that NGO would arrange lodging, boarding & sustenance
5. Letter from Secretary, Auroville (For Auroville Residents)
6. Letter from Managing Trustee of Shri Aurobindo Ashram (For Aurobindo Ashram inmates)
7 PIO Card
1. Photo
2. Passport
3. Residence Proof
4. PIO Card
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page &page containing its validity)
4. PIO card main page
8 Journalist Visa
1. Photo
2. Passport & Visa
3. Residence Proof
4. Accreditation Certificate
1. Applicant’s Photo
2. Photo Page, Page Indicating Validity, Page Bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity)
4. Accreditation certificate from Press information bureau & approval of Ministry of External affairs
9 Research Visa
1. Photo
2. Passport & Visa
3. Residence Proof
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity 7
4. Bonafide certificate. bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity). In case of staying in hostel in the University/ Educational Institution, letter from the authority concerned in the University/ Educational Institution confirming accommodation in the hostel
4. Form S / Bonafide certificate
10 Re-entry on Tourist Visa (In case of Afghanistan, China, Iran, Pakistan, Iraq, Sudan, Foreigners of Pakistan Origin & Stateless Persons)
1. Photo
2. Passport & Visa
3. Residence Proof
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity)
11 Conference Visa
1. Photo
2. Passport & Visa
3. Residence Proof
4. Invitation letter
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity)
4. Invitation letter from sponsor/organizer of conference 12 Project Visa
1. Photo
2. Passport & Visa
3. Residence Proof
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of 8
4. Undertaking Letter the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page &page containing its validity)
5. Letter of undertaking from company signed by Indian host or authorized signatory with name and contact number
13 Missionary Visa
1. Photo
2. Passport & Visa
3. Residence Proof
4. Request Letter
5. Undertaking Letter
6. Proof of Missionary Registration
7. Proof of GOI Approval
1. Applicant’s Photo
2. Photo Page, Page indicating validity, Page bearing arrival Stamp of Indian Immigration, Visa with endorsement
3. Form C copy from Hotel or Lodge/ Electricity bill / Landline Telephone / Municipal Bill of the landlord in case of staying in a house of a relative or friend along with a letter and photo-id card of the landlord. In case of rented accommodation copy of the Lease and License agreement (1st and last page & page containing its validity)
4. Request Letter from missionary
5. Undertaking/guarantee bond by missionary where he/she is working to ensure his/her repatriation in case of anything adverse
6. Proof of registration of missionary in India to substantiate that foreigner has come to work under missionary
7. Proof of Govt. of India approval, if coming to work in new missionary centre
i. Procedure for obtaining approval
ii. Cost
Business Visa - Indian Consular Fees
These consular fees were generated on Jul 1, 2013 12:01am EST.
A Business visa is strictly given those who are doing business in India such as making sales or establishing contacts on behalf of a company outside of India. Business visas may be valid for one year or more with multiple entries. However, the period of stay in India (for each visit) under this category is limited to six months only. Business visas valid for ten years with multiple entries may be available to foreign businessmen who have set up or intend to set up joint ventures in India.
Instructions for Pilots/Crew applying for Visa - Pilots and Crew members of all Chartered, Private jets, Cargo, Demonstration and Trainers Flights are in the category of Unscheduled Airlines and are treated as Reference cases, needing prior clearance from competent authorities in India. The minimum time required for processing such Visa applications is five (5) weeks. No Visa will be issued without the mandatory clearance.
Applicants going for employment in projects/contracts in India should apply for an Employment visa and not a Business visa. Journalists traveling to India will need to apply for a Journalist visa regardless of the nature of the trip.
If the applicant does not meet any other visa type standards, they should apply for an Entry visa. Spouse and dependent family members accompanying the applicant must apply for an Entry visa (NOT Tourist visa), co-terminus with the period of the principal visa holder. The Business Visa applicant must receive the visa prior to applying for accompanying the spouse and dependent family members. Each stay not to exceed 180 days, hence registration is not required. Please note the visa is valid beginning on the day it is issued. So, a 1 year visa issued on January 1 would be valid until December 31.1. Fees:
Note: Since consular fees are fixed on the basis of reciprocal arrangement/or special agreements between governments, the fees could differ for citizens of different countries. Consular fee once received is not refunded even if the visa application is withdrawn or visa not granted.
A Processing Service Fee of $13.00 will be collected by Travisa Outsourcing per application, per passport. All fees are payable by Money Order (preferred payment method - payable to "Travisa Outsourcing") or Credit Card - payment with Credit Card may cause a delay (Visa and MasterCard only). The current schedule of consular fees includes the $13.00 service fee collected by Travisa Outsourcing is given below.
Applicants needing a Protected Area Permit (PAP) will need to pay an extra $30.00 in addition to the consular fee.
All Consular Fees and Processing Fees are NONREFUNDABLE, even if a visa is denied or if a visa is issued for a shorter period of time or otherwise issued or returned at a time or on terms and conditions that vary from those sought by the applicant.
Travisa Outsourcing is a service company only. Travisa Outsourcing does not issue visas or in any way determine or control the issuance of, or terms and conditions of, visas, all of which is determined and controlled solely by the Consulates of the Embassy of India. Travisa Outsourcing is not and cannot be responsible for any determinations, acts or omissions by the Consulates.
Non-US Citizens - View More Information
Please note that US short term visa holders will be charged a reference fee of $20.00 in addition to the total fees below. US Green card holders and those who have a US long term visa (3 years or more) will not be charged the reference fee. Applicants with nationalities including Afghanistan, Bangladesh, Pakistan, Iran, China, Slovak Republic and Czech Republic will be required to pay the reference fee of $20.00 regardless of green card or US long term visa status. In cases where prior reference is required, the processing time is usually is 4-6 working days.
Please note that it is strongly recommended that Non-US Citizens apply for the shortest duration available.
Duration of Visa
Consular Fee
5 Years (60 Months) Multiple Entry
$203.00
1 Year (12 Months) Multiple Entry
$123.00
Note that for citizens of Czech Republic and Slovak Republic, processing time is a minimum of 21 working days.
Passport Requirements:
Original passport and one photocopy of passport information and signature page.
The passport must be signed, valid for 6 months beyond stay in India, with at least two blank passport pages available for India visa stamps. Amendment pages in the back of the passport are not suitable for Indian visas.2
Indian Visa Application Form:
One signed India visa application form plus one copy.
- The traveler must sign their own visa application form, and signatures on the application must match the signature in the applicant's passport.
- The Indian visa application form must be printed on two pages, and signed on both pages. The applicant must sign under the photo on the first page, and at the bottom of the second page.
- This is an online application form. On the Indian Government website, select the orange button on the left that says "Regular Visa Application" to start the visa application form.
- Once you complete the visa application, please print the form. Do not make an appointment and payment at this time
Please read the India Visa Application Guide before you begin the online visa application form.3
Photo Requirements:
One recent 2 x 2 passport type photograph, in color, front view and with a plain/white background. Glasses should not be worn in these photos; photos should not be stapled to the application.
OR - you can upload a passport photo when you place your order, instead of providing physical passport photos.
4
Other Forms:
Additional Particulars Form
This form must be printed out, completed and signed by all visa applicants.
Chicago: The Additional Particulars Form must be notarized.
San Francisco: The consulate will not accept forms that are handwritten. Type only. Questions that do not apply to the traveler should be answered specifically with "no" or "NONE" (in all capitals). The Indian Consulate will not accept the wording "N/A" or "not applicable".5
Certificate of Incorporation:
Copy of Certification of Incorporation from the inviting company in India.
6
Letter Of Invitation from India:
A letter of invitation on company letterhead from the sponsoring company in India. This letter must be signed by an appropriate person in the inviting company, such as HR, Executive, or inviting business contact.
The invitation letter must explain the relationship to the applicant and the purpose of travel. Information on this letter must correspond exactly with the information provided on the visa application form and supporting documents, and must be signed and sealed on company letterhead by the host in India.Business Cover Letter:
Letter from the employer or sponsoring company in the United States, on company letterhead. This letter must be signed by an appropriate person in the applicant's company, such as HR, Executive, or direct supervisor of the traveler.
The business letter must introduce the applicant, indicate the applicant's employment status/position held in the company, and clearly state the purpose of visit to India. Detailed contact information for the organizations to be visited must be included. The business letter must also state the validity of visa applied for (1 Year, 5 Year or 10 Year) and indicate who will be financially responsible for the applicant. For 5 year or 10 year requests, the letter must explain the need for future trips planned; visa validity will be granted at the discretion of the consulate. Information on this letter must correspond exactly with the information provided on the visa application form and all supporting documents.
The Consulate of India requires an official business letter to support your application. To generate an India Business Cover Letter on-line, simply request this service and provide your information using the simple online form in your Visa Application Kit, which you will receive once you place your order.
Chicago: If a company address is included on letterhead, the address must match the visa application form and must be within Chicago jurisdiction.8
Proof of Address:
A clear photocopy of the applicant's driver's license or state issued ID is the best proof of address. The address on the ID must match the present address on the visa application exactly. Alternatively, the most recent major utility bill (Water, Gas, Electric, Sewage), or a copy of a valid/current lease containing both the landlord and tenant signature, may also be accepted.
New York: If submitting a utility bill as proof of address the original is required, a photocopy is not accepted.9
Country of Origin:
For Applicants of Indian Origin: There are additional procedures and visa requirements for applicants of Indian origin, including applicants born in the US to parents of Indian origin. Please carefully review the requirements for applicants of Indian origin and include all necessary documents and fees with the visa application.
For applicants of Pakistani origin: Travisa cannot submit an Indian visa application for Pakistani citizens and applicants of Pakistani origin. These applicants are required to submit visa applications in person.
For applicants of Sri Lankan origin: Additionals form for Sri Lankan nationals.
For applicants of Bangladeshi origin: Additionals form for Bangladeshi nationals.Technical Issues
· The best web browser to use for the Indian Visa Application is Internet Explorer 8 (IE 8.0) and above.
· If you face any issue related to security certificate with other browsers, you can INSTALL SECURITY CERTIFICATE by clicking the link on the Indian visa application form.
· This application form is created and maintained by the Indian Government. Travisa is not able to access, retrieve, or edit any information submitted on this form, or to provide technical support for this form.
Indian Mission
· It is extremely important that you choose the correct Indian Mission (Consulate) where you will apply. You are required to select the Embassy or Consulate that is assigned to process visas for the State or Provence where you reside. Please be sure to review Travisa’s Indian Consulate jurisdiction list at the bottom of our visa instruction page or complete Travisa’s Global Reservation Form before you fill out the application to direct you to the correct Indian Mission.
· Indian Missions in the US are listed alphabetically under USA; (USA – Chicago).
Temporary Application ID
· At the top of the online India Visa Application you will see a Temporary Application ID. Be sure to record and save the Application ID. If you exit the form without clicking “save and continue”, or if you do not keep the Application ID, your information will be lost. To return to an application already started, or to reprint an application that is completed, you can enter the Temporary Application ID at the top of the online Indian Visa Application Form.
Visa Validity
· Indian Visas are generally issued for 6 months, 1 year (12 months), 5 years (60 months) or 10 years (120 months) depending on the citizenship of the applicant, type of visa and the fee paid. The Indian Visa Application form asks for the Duration of Visa (in Months). The number of months on the application form must be equal to the number of months that is an option available for the type of visa. The Indian Consulate has discretion to adjust the time up or down to the nearest validity option and charge full fees or to require a new application if the incorrect number of months is requested.
· The applicant will be responsible to pay the fee for the visa validity determined by the Indian Consulate. We recommend completing the Global Reservation Form first, and making sure that the same number of months is selected on both forms.
Verify and Submit
· After you have answered all of the questions, the final page will allow you to verify the details entered on the visa application form. Please review every question and answer on this page. If any corrections are needed, it will be possible to make changes on this page. However, once you hit continue it will NOT be possible to edit the form in any way. If a correction is needed after this point, it will be necessary to fill out a whole new application form.
Print and Sign
· Print the visa application on two pages. When printing the application, ensure the barcode is clearly printed at the bottom of first page of the application. There is a space for the applicant signature underneath the photo on the first page, and a signature near the bottom of the second page. Applications must be signed in both places.
How to fill out the Indian Visa Application Form:
Surname: Surname is the same as Family Name or Last Name. (The spelling must be exactly the same as the last name in the applicant’s passport)
Given Name: On the Indian Visa application Form, Given Name is the same as First Name and Middle Name; please type in the First Name and any Middle Name(s) here. (The name must be exactly as it is in the applicant’s passport)
For example, if John Edward Smith is the traveler:
Surname: Smith
Given Name: John Edward
Have you ever changed your name? If the applicant’s name is different from when they were born, click the “yes” box and enter the Surname/Last Name and Given Name/First and Middle Name(s) that were previously used.
Country of birth: Select the country where the applicant was born. This must match the information on the passport.
Email Address: This information is required. Even though the online form allows this field to be skipped, some Consulates do in fact require your email address. Please enter an email address.
Citizenship/National Id No.: If you do not have an additional National ID issued type NA
Religion: Select the religion of the applicant. If the applicant’s religion is not listed, select “OTHERS” and type in the religious information in the field directly below the pull down menu.
Visible identification marks: If the applicant has a visible identification mark (such as birthmark or tattoo) please type in the information here. Otherwise, type “NONE”.
Educational Qualification: Select the level of education of the applicant:· BELOW MATRICULATION – less than 10th grade education
· GRADUATE – College or university education
· HIGHER SECONDARY – High school education
· ILLITERATE – Not formally educated
· MATRICULATION – 10th grade level education
· POST GRADUATE – advanced study beyond college or university (MA, PhD, etc.)
· PROFESSIONAL – professional /technical training or certification
Did you acquire citizenship by birth or by naturalization?
· By Birth – choose this if the applicant has held their current citizenship since they were born.
· Naturalization – choose this if the applicant became a citizen through naturalization.
Previous Nationality: If the applicant became a citizen by naturalization, please select their previous nationality.
Passport Details Section
Passport details can be found on the information/photo pages of the applicant’s passport. All information entered on the application must be exactly as it appears on the passport.
Place of Issue: Enter the place of issue that is on the applicant’s passport. For US citizens, this may say “US Department of State”
Date of Expiry: This is the date the passport will expire. Be sure to enter the information in DD/MM/YYYY format on the Indian Visa Application Form.· The Indian government requires that a passport must be valid for at least six months in order to process the application.
· Travisa recommends that the passport should be valid for at least six months beyond the date of departure from India. If the passport will expire within one year, Travisa can assist with renewing a US or British passport).
Pakistani Passport Holders will also be asked to provide: Booklet No., Tracking No., Previous Passport No. (This does not apply to any other applicants).
Any other valid Passport/Identity Certificate(IC) held:· If the applicant holds a US greencard or Permanent Resident Card for any country, select “Yes” and provide details.
When all of the required fields on page 1 are complete, select “Save and Continue” or “Save and Exit”. Be sure that you have written down the Application ID number.
Applicant's Address Details
Note: the present (current) address is extremely important. The address must be within the jurisdiction of the Indian Mission (Indian Embassy or Consulate) where the application will be processed. If you are not sure that you selected the correct Indian Mission, please review the jurisdiction information on Travisa’s Indian Visa Instructions or complete Travisa’s Global Reservation Form, which will direct you to the city where you will be required to apply.
Present Address· Important: the applicant will need to provide proof that this is the current residential address. Proof includes a photocopy of state issued ID (Driver License or ID), major utility bill (Water, Gas, Electric, Sewage) or a copy of a valid/current lease. The address on these documents must be entered as the present address.
· The present address on the visa application form must match the applicant’s proof of residence. A maximum of 35 letters will fit in this space.
Permanent Address
· If the Permanent Address is the same as what is entered for Present Address, click the box.
· If the Permanent Address is different, type in the permanent address including postal/zip code. Reminder: if the Present Address (where the applicant currently lives) and the Permanent Address are different, the Present Address must be the one that matches the proof of residence documents.
· Important for non-US citizens: the permanent address must be an address in your home country (country where you are a citizen). A relative's address may be used if you no longer maintain an address in this country.
Family Details Section
It is required to provide the applicant’s father/mother/spouse’s information, (if applicable).
All information relating to father, mother must be completed even if they are deceased. Information regarding father, mother, and spouse must be complete.
Were your Grandfather/ Grandmother (paternal/maternal) Pakistan Nationals or Belong to Pakistan held area? If the answer is yes for any of the applicant’s grandparent’s, enter the details. The answer is defaulted to yes. If the answer to this question is no, be sure to select NO.Profession / Occupation Details of Applicant
Present Occupation
· Select the occupation that best matches your current job.
· If the applicant is a Housewife, Student or Minor, enter the spouse’s or father's occupation details.
Employer Name/business: Enter the name of the company/employer of the applicant.
Designation: Enter the type of position (such as Manager, Consultant).
Address: Enter the street address for the company/employer.
Phone: Enter the phone number for the company/employer.
Past Occupation: Select a previous occupation if this is relevant to the applicant.
Are/were you in a Military/Semi-Military/Police/Security Organization? If the answer is “Yes” for the applicant, provide the Organization, Designation, Rank, and Post. Otherwise, select “No”.When all of the required fields on page 2 are complete, select “Save and Continue” or “Save and Exit”. *Be sure that you have written down the Application ID number.
Details of Visa Sought
Type of visa: Select the type of Indian Visa needed.
· Important: selecting the correct type of visa is very important. The Indian Embassy or Consulate will review the application very carefully and if the visa application is not for the correct type of visa based on the activities planned in India, this will delay the process or require a new Indian visa application to be submitted
All applicants will need to provide the following information:
Duration of Visa (in Months)· Please note: it is very important that the purpose of visit is appropriate for the type of visa requested. The application will be rejected otherwise.
o 6 months
o 12 months
o 60 months (5 years)
o 120 months (10 years)
No. of Entries: Select single, double, triple, multiple, entries.
• Number of entries granted will be at the discretion of the Indian Consulate.
Purpose of Visit: Select the type of activities that will be conducted while in India.
• Please Note:
Expected Date journey: Provide the planned date of departure from the United States, Canada (or home country) use the DD/MM/YYYY format.
Port of Arrival in India: Enter the city where the applicant will first arrive in India.Additional information needed, depending on the type of India visa required:
Indian Business Visa: Name, address, phone number and email of the Company in India.
Indian Business Visa Transfer: Details of the visa to be transferred and the passport from which it needs to be transferred.
Indian Conference Visa: Number of days the applicant will stay in India.
Indian Diplomatic Visa: Additional information or documentation may be requested by the Consulate on a case by case basis.
Indian Employment Visa: Professional Qualification of the applicant, Name and address of the company/employer in India, Designation/Post (position) the applicant will take in India and salary to be paid in India.
Indian Employment Visa Transfer: Details of the visa to be transferred and the passport from which it needs to be transferred.
Indian Entry Visa: Additional information or documentation may be requested by the Consulate on a case by case basis.
Indian Entry Visa Transfer: Details of the visa to be transferred and the passport from which it needs to be transferred.
Indian Journalist Visa: Additional information or documentation may be requested by the Consulate on a case by case basis.
Indian Medical Attendant Visa: Name and passport number of the patient.
Indian Transit Visa: What country the applicant will visit before or after transiting India, and if the traveler has a visa or residency status for that country.Previous Visit Details
Have you ever visited India before? If the answer is “Yes” provide details of the previous visit including the address where the applicant stayed and the cities visited, as well as details of the previous Indian visa including the visa number and type of visa, where and when the previous visa was issued.
Has permission to visit or to extend stay in India previously been refused? If the applicant has applied for a visa or applied to extend their stay in India in the past and has been denied, the Mention Control No. and date this occurred must be provided. Otherwise this space should be left blank.Other Information
Countries Visited in Last 10 years: List all countries visited by the applicant in the last 10 years, separated by a comma.
Reference: The name, address and phone number must be provided for a reference in India AND a reference in the United States or Canada.
When all of the required fields on page 3 are complete, select “Save and Continue” or “Save and Exit”. *Be sure that you have written down the Application ID number.
*Important: The next page will allow you to verify the details entered on the visa application form. Please review every question and answer on this page. If any corrections are needed, it will be possible to make changes on this page. However, once you hit continue it will NOT be possible to edit the form in any way. If a correction is needed after this point, it will be necessary to fill out a whole new application form.
If any corrections are needed select “Modify/Edit”.
Only after you are certain that everything on the application form, including the Indian Mission (where the application will be processed) and all of the detailed answers are correct, select “Verified and Continue”.
After the form is completed, verified and submitted, you will see a confirmation that includes the Applicant Name and File Number. The File Number is different from the Temporary Application ID. If you need to print another copy of this application, you must have the file number, not the temporary ID number. Be sure to write down the File Number.
The Indian Embassy or Consulate will not accept any application that has incorrect information. Handwritten corrections are not permitted. If the information on the application form needs to be corrected after the form has been printed, it will be necessary to complete a new online application.
Travisa Passport and Visa Service can process the Indian visa for you, if you are applying in the United States, Canada or in the United Kingdom.Special Fee Rates - View More Information
These are fees for citizens of countries which have an special agreement with India. The fee applies to all visas regardless of duration unless otherwise noted.
Citizenship
Consular Fee
Afghanistan
$0.00
Argentina
$0.00
Bangladesh
$0.00
Jamaica
$0.00
Japan
$11.00
Korea, DPR (North Korea)
$0.00
Maldives
$0.00
Mauritius
$0.00
Pakistan
$2.00
South Africa
$0.00
Travel Document (India)
$0.00
Travel Document (Other)
$120.00
Travel Document (USA)
$160.00
Uruguay
$0.00
No Visa Required
Citizens of the following countries do not need a visa to enter India.
· Bhutan
· Nepal
iii. Time frame
Indicative Processing Time
The processing times shown below are only indicative [Depending upon circumstances or merits of a case, processing time may vary].
1. Japanese nationals from jurisdiction of Embassy of India, Tokyo :
(i) Applications deposited in the forenoon: Three working days
(ii) Applications deposited in the afternoon: Three to four working days
(iii) Application processing status can be checked on the online visa application website.
2. Others: Five (5) working days excluding the day on which the application is deposited.
- Japanese nationals would be required to fill an application form (Annexure I). The format of the physical form will also be available from the airlines on board the flight. The Japanese nationals would be required to carry duly filled "VOA Application Form" along with duly filled Disembarkation Card.
-