Know Your GST Identification

Dear Readers,

Wish You a Happy May Day - 2025

The GST number, known as GSTIN, stands for Goods and Services Tax Identification Number. GST is a comprehensive indirect tax on Goods and Services in India. It is a 15-digit tax identification number issued by the government of India to registered taxpayers. Any individual, company, or partnership firm registering under GST is assigned this identification number.

GSTIN consists of 15 digits. These are 15 alphanumeric characters, each has a specific purpose. First 2 digits represent the state of registration. Next 10 characters represent the PAN number of the GSTIN holder. Next is a digit which shows the number of registration against a single PAN number in a state. Next is Z which is common for all. In the end it's either an alphabet or a number which is a check digit.

First 2 digits : State Code of India

3-12 alphanumeric characters : PAN of Person / Company/ Service 

13 digit : Number of registrations in a single state

14 alphabate : Z, common for all

15 alphabet or number: Check sum digit.

State Codes.

To Know more about PAN Card click Here

Gratuity Act

Dear Readers,

Wish You a Happy May Day-2024

Gratuity is one of the many retirement benefits offered by a company to an employee. It is a lump sum amount that employers pay their employees as a sign of gratitude for the services provided. However, only those employees who have been employed by the company for five years or more are given the gratuity amount. It is governed by the Payment of Gratuity Act, 1972.

All central and state government departments, defense, and local governing bodies are covered under this act. Private organizations can come under its purview subject to fulfilment of certain conditions.

Gratuity Act shall be applicable to

(a)    Every factory, mine, oilfield, plantation, port and railway company.

(b)    Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.

(c)     Any establishment employing 10 or more persons as may be notified by the Central Government.

(d)    Once Act applies, it continues to apply even if employment strength falls below 10.

To receive the gratuity, you must meet the following eligibility criteria:

You should be eligible for superannuation.

You should have retired from service.

You should have resigned after continuous employment of five years with the company.

You on disablement on account of a sickness or an accident.

In case of your death the gratuity is paid to the nominee.

However, the condition of completion of continuous service of five years shall not be necessary in case the termination of the employment of any employee is related to their death or disablement. In this case, ‘completed year of service’ would refer to as continuous service for one year and an employee shall be said to be in continuous service for a period if he/she has been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave, lay off, strike or a lock-out or cessation of work not due to any fault of the employee.  There is a judgment by the Madras High Court, which states that an employee would be eligible for gratuity even in case he/she has completed 4 years 240 days.

In addition to above, in the case of death or incapacitated, the employer is mandated by law to pay gratuity to the now ex-employer or his nominee/legal heir, as the case may be, irrespective of the number of years of continuous service.

The law further states that in case the nominee of the employee is a minor, then the assistant labour commissioner shall invest the money in nominee’s name in a term deposit with the State Bank of India or a nationalized bank for the minor’s benefit until he/she becomes a major.

Formula for gratuity calculation is G=S*N*15/26

  Gratuity (G)= Last Drawn Salary(S) × No. of Years of Service(N)× 15/26

  The ratio 15/26 represents 15 days out of 26 working days in a month.

  S = Last drawn salary = (Basic Salary + Dearness Allowance).

  N = Years of Service are rounded down to the nearest full year. 

If the number of years you have worked in the last year of employment is more than six months, then it will be rounded to the nearest figure. Suppose your tenure of service is 16 years 7 months, then you receive the gratuity for 17 years. Otherwise, it’s for 16 years if it happens to be 16 years 4 months.

The tax treatment of the gratuity amount depends on the type of employee who has to receive the gratuity.

The amount of gratuity received by any government employee (whether central/state/local authority) is exempt from the income tax.

Any other eligible private employee whose employer is covered under the Payment of Gratuity Act. The maximum amount of gratuity specified is Rs 20 lakh, irrespective of the number of years of service. Please note that in your entire working life, the maximum tax-exempt gratuity amount you may claim, cannot go beyond Rs 20 lakh. Any excesses would be treated as ex-gratia and liable for tax as per the tax bracket.

Gratuity paid to the widow or legal heir of an employee will be exempt of tax – Upon an employee’s demise, the gratuity that is paid to his widow or legal heir will be exempt from tax. Any ex-gratia payment made to an employee or his legal heir on account of an injury caused will also be tax-free.

Forfeiture of gratuity- According to the Payment of Gratuity Act of 1972, when the employee has been terminated due to disorderly conduct wherein, he/she tries to physically harm individuals during his/her employment, an employer holds the right to forfeit their gratuity payment, either wholly or partially despite the employee having completed 5 and more years of service in a company.

Basic Guides for Hot Weather Concreting

 Dear Readers,

This article is in continuation with my previous posts of Hot Weather Concreting and Concrete Precautions. Following points are the simple basic guides for Hot Weather Concreting.

While hot weather conditions are commonly encountered in summer, combinations of high temperatures, winds and low humidity could result in conditions leading to problems with concrete placement and finishing at any time. Hot weather is any combination of:

High ambient temperature;

Low relative humidity;

High wind

AS 13791 places a 35°C limit on the maximum concrete temperature at the time of delivery. However, when the air temperature rises above 30°C, it is usually recommended that precautions be taken, particularly if there is also hot dry wind.

1.     Plan in advance. Have equipment and materials ready before the hot weather arrives during the pouring day.

2.       Keep the subgrade and forms moist so they do not absorb water from the mix.

3.       Keep sunshades and windbreaks available and use them whenever possible.

4.       Have everything prepared before the ready-mix truck arrives. Don’t make the truck wait for you.

5.     Keep in constant communication with the ready-mix concrete provider. Coordination between the contractor and the producer is key.

6.       Concrete should be placed, struck off and Darby immediately.

7.     Use evaporation retardants, fogging or misting with water, or cover with a vapor-proof sheet after screeding (Finishing works). This will help prevent rapid drying, crusting, plastic shrinkage and rubber sets.

8.     Temporary covers, like continuously moistened burlap, may be placed over the fresh concrete and removed in small sections immediately ahead of the finishers.

9.      Substituting a burlap drag or broom finish will eliminate other high-risk finishing practices, such as smooth trowel finish.

10.   Curing should take place when the surfaces are hard enough to resist marring.

11.   Seal with a good, quality sealer for a minimum of 30 days after placing and curing.

12.   Remember to protect the crew in high temperatures. Drink plenty of fluids and be careful with long exposure to the sun.

13.   Use PPE’s for workmen and rest shed (minimum 15% additional workforce)

14.   Ensure the machinery technicians at work location to attend minor repairs immediately.

15.       Have standby equipment and manpower for all stages

16.       Programme concreting for the cooler parts of the day, or even schedule night-time placement if possible.

17.       Plan the locations of construction joints ahead of time with hot weather contingencies in mind.

18.       Keep all equipment that touches the concrete cool (chutes, conveyors, pump lines, tremies, reinforcement and buggies). Protecting equipment from the direct sun will If it can’t be kept continuously cool, spray-cool it as necessary with water.

19.       Use a thermometer to monitor the temperature at which concrete is being delivered, and call for adjustments at the plant if necessary.

20.       Avoid delays at all stages. 

Wish You all the Best for Excellent Concreting during Hot Weather. Have a Nice Day!!! 

Employees' State Insurance Act (ESI Act)

 Dear Readers,

Wish You a Happy May Day - 2023

The Employees State Insurance Act, 1948 is beneficial and social legislation. Its main aim is to provide economic security to people who work in certain factories and establishments. 

The ESI scheme provides complete medical care to the employees registered with the ESIC during the period of his/her incapacity and working capacity. It also provides financial assistance to compensate for the loss of wages of the employee during the period of his/her abstention from work due to sickness, maternity and employment injury. The ESI scheme provides medical care to family members of the employee also. The Act contains several important definitions and provisions that regulate these workers.

At present, the ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries’ monthly wage does not exceed Rupees twenty-one thousand (Rs 21,000) are covered under the scheme. In future this limit may change subject to government policy.  Whether the employer has employed 10 or more employees, all employees employed by the employer, agnostic of the salary are reckoned. The applicability of the scheme is explained through a flow chart below:

Please take a note that Construction Industry does not cover under ESI if it is a green field project. For the similar benefits Construction Industry used to follows BOCW Cess Act. However, it may differ for brown field project hence follow the principle employer guidance.

Establishments that are covered under the ESI Scheme

The Central Government issued a notification that all factories where 10 or more persons are employed are covered under the ESI scheme mandatorily. The following establishments employing 10 or more persons are also mandatorily covered under the ESI scheme:

1). Shops.

2). Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’.

3). Cinemas, including preview theatres.

4). Road motor transport establishments.

5). Newspaper establishments.

6). All private educational institutions and medical institutions.

Benefits of the ESI Scheme

Broadly, the benefits under this scheme are categorized under two categories:

Cash benefits (which includes sickness, maternity, disablement (temporary and permanent), funeral expenses, rehabilitation allowance, vocational rehabilitation and medical bonus) and,

Non-cash benefits through medical care.

Complete medical care and attention are provided by the scheme to the employee registered under the ESI Act, 1948 at the time of his incapacity, restoration of his health and working capacity.

During absenteeism from work due to illness, maternity or factories accidents which result in loss of wages complete financial assistance is provided to the employees to compensate for the wage loss.

The scheme provides medical care to family members also.

In case a worker under the Act dies during employment, the ESI Corporation pays some money to his dependents. According to the Act, dependents are certain relatives of a deceased worker. These include his widow, a son below 25 years of age, an unmarried daughter and his widowed mother. A son/daughter above 25 years can also be a dependent if he/she is wholly dependent on the worker.

Pregnancy which leads to the birth of a living child is called “confinement” under this Act. It can also mean the birth of a child (living or dead) after 26 weeks of pregnancy.

The ESI Act contains a few categories of disablements for which employees can claim compensation. These may be either permanent or temporary. Permanent disablements may further be either partial or total.

For More Details about BOCW Cess Click Here
For More Details about Rules and Regulations Click Here 
For More Details about Labour Law's of Construction Industry Click Here
For More Details about Labour Welfare Fund Click Here

Direction of Winds

Wind direction is the directions from which the wind is blowing or the direction from which the air is moving. Wind Direction indicates the compass direction from which the wind is blowing. Wind direction is illustrating using degrees from true north (360^o) to record direction.  The compass is divided into 360 degrees around the circle. The North position equals zero, and the degrees increase as you move around the compass clockwise until you reach 360 degrees back at the North position.

From the above picture on the compass below the letter N stands for North, S stands for South, E stands for East, and W stands for West. In order to be more specific, the letters NE are used for Northeast, SE for southeast, SW for Southwest and NW for Northwest. It is further divided NNE & ENE between first quarter. NNE stands for North Northeast and ENE stands for East Northeast. Please refer below table for abbreviation and the degrees.

BOCW Cess

Dear Readers,
 
Wish You a Happy May Day-2017

Following three industries where normally unskilled manpower are being deployed

·         Construction Industries –Applicable act is BOCW Act, 1996

·         Manufacturing Industries – Applicable act is Factories Act

·         Mining Industries – Applicable act is Mines Act

Now, let us discuss about BOCW act. It is short form of Building and Other Construction Workers' Welfare Cess Act, 1996

Normally in construction Industries, we used to follow the Contract Labour Act, 1971, and we take Labour License before commencement of Construction Job. In that Act, normally the details are given about the Contract Workforce, Obtaining Labour License Procedure, Welfare Measures, and all about the contract Workmen. The Government felt that the act is not having the uniqueness.

 

Hence in 1996, Indian government introduced the Building & Other Construction Workers Act, (in Short, BOCW Act), BOCW Rules and BOCW Welfare Cess Act, In BOCW Act & Rules it has given the direction about the Welfare measures to Workmen, Safety Precautions and many Technical Aspects about the Tools, Tackles, Instruments, Machineries, Lifting Appliances, its maintenance, inspection, etc. Medical Facilities required to be given to the injured workmen, Periodical Medical Checkup for drivers, operators, food handlers, etc., Pre-employment Medical Checkup for every workmen.

In this Act, for implementation purpose the Government needs fund. So they implemented the BOCW Welfare Act, which made the provision to collect 1% minimum and Maximum of 2% of the Cost of Construction / Works carried out during the Financial Year to be paid as BOCWW Cess to the BOCWW Cess Board.

Some of the Key Points are below.

·         Cess came into force on 26th March, 1998

·         This act is applicable immediately on commencement of Job

·         The Principal Employer and the contractors, both are liable for this Cess

·         The responsibility of Principal Employer to make the payment of Cess.

·         The BOCW Cess is payable to the Government (BOCW Welfare Commissioner of State)

·         Cess rate not exceeding two percentage, but not less than one percentage of the cost of construction incurred by an employer.

·         Cess shall not include the Cost of land and any compensation paid or payable to a worker or his kin under the Workmen's Compensation Act. 1923.

·         BOCW act does not include any building or other construction work to which the provisions of the Factories Act, 1948 (63 of 1948), or the Mines Act, 1952 (35 of 1952), apply.

·         Cess is not refundable in any case. However, the amount of compensation paid to the workers during that year, can be deducted from the Cess payable.

·         Cess shall be paid by an employer,

o   If the project duration is less than a year, within thirty days of completion of the construction project or within thirty days of the date on which assessment of Cess payable is finalised, whichever is earlier, to the Cess collector.

o   If the duration of the project or construction work exceeds one year, Cess shall be paid within thirty days of completion of one year from the date of commencement of work and every year thereafter at the notified rates on the cost of construction incurred during the relevant period.

·         Once Factories Act is implemented there the BOCW act will get ceased.

·         Once the Factory fencing is made excluding the expansion project then Factories Act is not applicable and only BOCW will be applicable to that expansion project.

·         If Construction area falls within the factory premises then BOCW Act cannot be applicable and only Factories Act will be applicable.

·         For Registration under BOCW Act is exempted for those who got covered by Factories Act and Mines Act and the construction work carried out for self and the cost is within 10 Lakhs.

·         Generally ESI Coverage is not applicable for Construction Industries and not for BOCW Act. But if your construction Activities are being done in the premises of Factories or your principal employer is covered under ESI, then obviously you also required to make payment of ESI as 1.75% Employee Share and 4.75% Employer Share.

The above views are my personal views from the study which I have made on this subject. There is a need to take up the ambiguities in this entire enactment

International Steel Standards

Dear Readers,

While preparing blog articles, self always try to co-ordinate the steel standards between the other steel standards. Unfortunately, there is no common global steel standard or classification system. Rather, there are a number of classification and designation systems accepted and used worldwide, which are developed and standardized either nationally and internationally.

Steel standards are systems for classifying, evaluating, and specifying the chemical, mechanical, and metallurgical properties of different types of steels and ferrous alloys that are used in the production of components, machinery, and constructions.

Steels can be classified by a large variety of criteria, such as:

1). Composition, for example carbon, low-alloy, or stainless steel.

2). Method of manufacturing, such as open hearth, basic oxygen process, or electric furnace methods.

3). Finishing method, such as hot rolling, cold rolling, and various surface finishing and platting techniques.

4). Product form, for example bar, wire, plate, sheet, strip, tubing or structural shape.

5). DE oxidation practice, such as killed, semi-killed, capped or rimmed steel.

6). Microstructure, such as ferritic, pearlite and martensitic.

7). Heat treatment, such as annealing, quenching and tempering.

Some of the more frequently used steel standard and classification systems include:

AISI (American Iron and Steel Institute) steel standards, which are traditionally used in the US and abroad. While this standard is no longer maintained and has increasingly been replaced by SAE, ASTM and other U.S. standards, it is still widespread.

EN (Euro norm), which is a harmonized system of metal and steel standards of European countries. Although it is accepted and effectively used in all European countries, “obsolete” national systems, such as German-DIN, British-BS, French-AFNOR and Italian-UNI are commonly used and often found in many documents and specifications.

Japanese JIS steel standards, which are widely used in Asia and Pacific regions. JIS steel specifications have also often been used as a base for other national systems, such as Korean, Chinese, and Taiwanese standards.

Steel standards for BRIC Countries Brazilian-NBR, Russian-GOST, Indian-IS, and Chinese-GB and YB are followed.

For Example, Different standards used for General structural steel in construction works are as follows.

Indian Standard = IS: 2062

Chinese Standard = GB/T 700-2006

Japanese Standard = JIS G3101-2004

European Standard = EN 10025-2004

American Standard = ASTM A36-05.

Similarly, Different steel standards are used for Cold forming steel, high strength low alloy structural steel, Steel for boiler and other pressure vessels and Steel for ship building.

Note : In addition to the many standards described above, many steel manufacturers and suppliers have developed their own proprietary, commercial names for designating steels. Some of these designations have, after years and decades of use, become widely used within the industrial community and are often referred to as “common“ names or “trade” names, without actually referring to the particular supplier. In most cases, these “common” names are not standardized and properties may vary substantially; their application in official technical documents should therefore be avoided.

PET (Polyethylene Terephthalate)

Dear Readers,

This is continuation of my earlier post of Plastics. 

Polyethylene terephthalate (PET) is clear, tough, and shatterproof. It provides a barrier to oxygen, water, and carbon dioxide and is identified with the number 1. 

PET's ability to contain carbon dioxide (carbonation) makes it ideal for use in carbonated soft drink bottles. Take a look at the bottom of your soft drink bottle and you will most likely find a number 1 there. PET is also used to make bottles for water, juice, sports drinks, beer, mouthwash and salad dressing. You can also find it on your food jars for peanut butter, jam, jelly, and pickles as well as in microwavable food trays.

PET is globally recognized as a safe, recyclable packaging material. Numerous tests have created a broad scientific consensus that PET is non-toxic and is a safe material for the storage of food and beverages. It is intended for single use applications; repeated use increases the risk of leaching and bacterial growth. PET plastic is difficult to decontaminate, and proper cleaning requires harmful chemicals. Polyethylene terephthalates may leach carcinogens.

PET plastic is recyclable and about 25% are recycled. The plastic is crushed and then shredded into small flakes which are then reprocessed to make new PET bottles, or spun into polyester fiber. This recycled fiber is used to make textiles such as fleece garments, carpets, stuffing for pillows and life jackets, and similar products.

Products made of #1 (PET) plastic should be recycled but not reused.

For More Details about Plastics Click  Here

Labour Law's of Construction Industry

Dear Readers,

Wish you a Happy May Day-2015

Without labour nothing is possible in construction industry. Engineer Diary is proud to discuss about the labour law of construction industry in India 

In construction industry, normally the works are executed by labors engaged by contractor(s) / Sub-Contractor(s). The principal employer, contractor(s) as well as the Sub Contractor(s)  , they  are having certain duties and responsibilities under the applicable labor laws to them and liable jointly . Following list of minimum required compliances to be made by principal employer as well as contractor(s) are followed by list of act .

Below a list of some Act applicable to Construction Industry:

1. Workmen’s Compensation Act,1923 (now it is Employee Compensation Act)
2. Payment of Wages Act, 1936
3. Industrial Dispute Act, 1947.
4. Minimum Wages Act, 1948
5. Employees’ State Insurance Act, 1948 ( in certain conditions)
6. Employees’ Provident Fund Act, 1952
7. Maternity Benefit Act, 1961
8. Payment of Bonus Act, 1965
9. Contract Labour (Regulation & Abolition) Act, 1970
10. The Contract Labour (Regulation & Abolition) Act, 1970
11. Equal Remuneration Act. 1976.
12. Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
13. Inter-State Migrant Workers Act, 1979
14. Building and Other Construction Workers Act, 1996
15. Building and Other Construction Workers’ Welfare Cess Act, 1996
16. Child Labour Act, 1996.

By Principal Employer:

1. Obtain Registration Certificate under Contract Labour Act and amend it time to time whenever there is a change; 
2. Obtain Registration Certificate under BOCW Act for its own employees and renew/ amend it from time to time. Also Register Beneficiaries under BOCW Act; 
3. Obtain Registration under Inter-state Migrant Labour Act, if applicable; 
4. Maintain register of contractors;
5. Maintain all the registers and records in respect of own employees (as listed above in list of registers and records to be maintained by Contractors);
6. Maintain minimum rates of wages to own employees;
7. Maintain minimum HRA at 5 % of Basic + DA;
8. Make compliance of EPF, PT, MLW etc. in respect of own employees;
9. Cover own employees sufficiently under Employees Compensation;
10. Ensure that the contractors pay as per minimum rates of wages;
11. Ensure that the contractors make proper compliance of EPF, PT, MLW etc.;
12. Ensure that the contractors have Cover the employees sufficiently under Employees Compensation;
13. Submit annual return under Contract Labour Act and also under BOCW Act;
14. Maintain Health register and certificate of Medical Examinations etc.;
15. Maintain Testing Certificates of lifting appliances and machines etc.;
16. Ensure formation of Safety Committee and its functioning, appointment of Safety officer, Safety and Health written policy- its approval, Safety & Health audit etc.;
17. Ensure that the employees at work wear safety shoes, helmets, safety belts etc. 

By contractor(s) / Sub Contractor (s):

1. Obtain License under Contract Labour Act if employees are above 20 on any day and renew/ amend it from time to time;
2. Obtain Registration Certificate under BOCW Act if employees are above 10 on any day and renew/ amend it from time to time. Also Register Beneficiaries under BOCW Act;
3. Obtain license under Inter-state Migrant Workmen Act, if applicable
4. Maintain the minimum rates of wages as applicable;
5. Maintain min. HRA at 5 % of Basic + DA;
6. Make the compliance of EPF&MP Act;
7. Make the compliance of Profession Tax;
8. Make the compliance of MLW Fund;
9. Cover the employees sufficiently under Employees Compensation.
10. Maintain muster roll, wage register, other registers, records, notices, forms etc. as required under various applicable Acts, abstracts of various applicable Acts.

Happy Engineers Day-2014

Dear Readers,

Wish You a Happy Engineers Day.

Engineer Diary blog is very happy to wishes the Engineer day as well as publish the 100th post of this blog. This is an important mile stone for us. Thanks to all readers for continuous support to this blog. This blog started in the year 2010 and published first post on 2nd March 2010. For 100th post this blog takes five years, of-course it has been consumed more time due to quality of articles and technical information's.

This time self decided to post some article other than the regular subject (Engineering) and useful to all readers. Let us see how the friendship breaks?

Everybody life span one person is more important other than your spouse and family members. You may agree that person is absolutely your friend. To keep the friendship alive, we should not allow to break the same. 

How Friendship Breaks?

Both friends are busy in their works or they feel that other is busy with their work

So both won't disturb to each other works

Time Passes...

Both will wait other will speak

Then both will think why should I speak first?

Here love convert in to angry

At last both will not contact each other that memories loses and weaken

Then forget each other

So Don't forget keep contact regularly

Keep in contact through e-mail, mobile, Telephone & letters

F-  Few

R-  Relations

I -  In

E - Earth

N - Never

D - Die

To know more about Engineer Day Click Here