Karnataka Repealing Of Certain Enactments And Regional Laws Act, 2020

The Government of Karnataka vide notification no 617, has repealed (a) the Karnataka Tax on Profession, Trades, Callings, and Employments (Amendment) Act, 2018, (b) The Karnataka Taxation Laws (Amendment) Act, 2016. As per the notification, (1) Serial No 10 of the Schedule 1 under the Karnataka Tax on Professions, Trades Calling and Employments Act, 1976 is restored to Contractors executing works contract where total consideration of all the contracts in a year is:- (i) less than Rs.2 lakhs - Nil (ii) more than Rs. 2 lakhs but less than Rs.10 lakhs - Rs.1000 per annum (iii) more than Rs.10 lakhs but less than Rs.25 lakhs - Rs.1500 per annum (iv) more than Rs.25 lakhs - Rs.2500 per annum. (2) For Registration and enrolment under the Karnataka Tax on Professions, Trades Calling and Employments Act, 1976 the assessing authority has to grant such certificate within thirty days of the receipt of the application. Please refer to the notification for more details

Karnataka Repealing Of Certain Enactments And Regional Laws Act, 2020.pdf (1.6 MB)

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The Government of Karnataka vide notification no 617, has repealed the Minimum Wages (Karnataka Amendment) Act, 2017. As per the notification under the Minimum Wages Act 1948, the fine under penalties for certain offenses is restored to five hundred rupees, and the fine under General provision for punishment of other offenses is restored to rupees five hundred from rupees ten thousand.

Repeal Of The Minimum Wages (Karnataka Amendment) Act, 2017.pdf (1.5 MB)

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Just to add to what @Ankit has shared.

It’s a very important announcement for establishments in Karnataka.

The State Government of Karnataka on 01 December’20 has issued Karnataka Repealing of Certain Enactments and Regional Laws Act, 2020.

This Act may be called the Karnataka Labour Welfare Fund (Amendment) Act, 2017 & It shall come into force at once.

“It is considered necessary further to amend the Karnataka Labour Welfare Fund Act, 1965 to increase the rate of contribution of Employees, Employers and Government to the Labour Welfare fund from six rupees, twelve rupees and six rupees to twenty rupees, forty rupees and twenty rupees respectively.”

Thanks @Ankit for sharing this.

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hi Dinesh

actually reduction of LWF is fake news, it is sent by some association & not from LWO

this is what told by LWF officer when I spoke to the LWF officer & he said that there was some false notice sent by some association about the reduction of deduction to 6 & 12.

In fact there is no change in the amount 20 & 40 like last year, he said.

Attached the notification for your reference as downloaded from below referred link.

You may have revoke the deduction to 20 & 40 instead of 6 & 12.

Moreover they do not accept any cheque going forward. We have to remit the amount online. For that we have to register in the below said link. On making payment we will also get receipt & there is no need of any physical document to be sent to LWF as per LWF officer.

press note kannada 2020 contribution.pdf (105 KB)

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Right. There is no change in LWF… EE-20/- and ER -40/- total : 60/-.

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Oops :frowning: let me cross check too.

Thanks @pelatro and @Arpana. Let me check with our Legal team also once to cross verify.

It is not any reduction but the restoration of earlier contribution LWF rates.

Clarification On Rates Of LWF Contribution For The Year 2020 Under The Karnataka LWF Act, 1965.pdf (345.6 KB)

Restoration Of Earlier Contribution Rates Under LWF In Karnataka.pdf (1.5 MB) - refer last 2 pages

Hope the above clarifies, Dinesh.

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@pelatro thank you for bringing this up.

@dinesh, once you have it checked with your legal team, please restore the rates to 40:20 in greytHR to enable the correct payroll deduction.

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Hi @deepa.d

If you recall, we had published a statutory update on 18th Dec 2020 regarding the revision of Labour Welfare Fund (LWF) contribution for Karnataka State. This was as per the gazette notification dated 1st Dec 2020. The recent statutory update on LWF amendment explained the restoration of previous LWF contribution rates. However, the government of Karnataka has now revoked the LWF amendments as per the new press release issued on 19th Dec 2020. The latest revised LWF contributions for Karnataka state are as follows:

  • Employee Contribution: Rs. 20
  • Employer Contribution: Rs. 40

Please note that we have now revoked the changes in our application as well. This is how the latest update concerns you:

  • If you have already processed the payroll for Dec 2020, you can re-process the payroll so that revised rates are effective and reflected in the December month payroll.
  • If you have already processed and finalized the payroll, do not re-process the payroll so that the changes will not affect your payroll.
  • If the payroll is finalized; however, you need to re-process the payroll, you can contact our support team to help you override the same.

Thank you Dinesh, for getting the needful done for payroll.

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