New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    According to Section 36(2) of the Code on Wages, 2019,

    what is the limit for carrying forward the excess allocable surplus to the succeeding accounting years?
    A Ten percent of the total salary of the employees Correct Answer Incorrect Answer
    B Twenty percent of the total salary or wage of the employees Correct Answer Incorrect Answer
    C Fifty percent of the total profits of the establishment Correct Answer Incorrect Answer
    D There is no limit; the entire surplus must be carried forward. Correct Answer Incorrect Answer

    Solution

    Twenty percent of the total salary or wage of the employees, Explanation: As per Section 36- (2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 26, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilised for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in such manner as may be prescribed by the Central Government.

    Practice Next