India – Staffing Industry calls for amendments to Contract Labour Act

By memberservices@staffingindustry.com (Danny Romero)

The Indian staffing industry is seeking amendments in the Contract Labour Act and asking for lower tax deductions to promote the growth of flexi-staff in the formal sector.

According to the Indian Staffing Federation, flexi-staff is likely to witness an increased flow of workers with the government pushing for salary payment through banks.

Under the aegis of the Indian Staffing Federation, the industry is calling for a single license to operate a staffing business and just one return per license along with simplified documentation in contrast to the complex and bureaucratic process that exists at the moment.

The federation states that India is set to become the third largest temporary staffing market in the world based on the number of workers with 2.9 million flexi- staff by 2018. Despite the fact that it is one key industry which is generating and mobilising jobs, current policies do not recognise the industry, says the Federation.

In a statement published in the Economic Times, Suchita Dutta, executive director, Indian Staffing Federation, said, “The government needs to bring in required amendments in [the] CLRA Act to protect the players working in [the] formal sector. The industry currently demands a license at state and national levels for the staffing companies to operate in the industry.”

“For the cause of employment generation, taxation should be on value added service fee/ service tax on our fees (value-added part) rather than on total value (pass through cost),” Dutta said. “Also, with immediate effect remittance of tax should be applicable upon receipt of payment rather than on accrual.”

Source:: Staffing Industry Analysts Daily Newsfeed