Builders' Association of India
Southern CentreBuilders' Association of India
Southern CentrePlot A1, 1st Main Road,
Opp. to AIEMA, Industrial Estate,Ambattur,
Chennai – 600 058.
© BAI
State level convention was organized by Southern Centre at Chennai Trade Centre in a very special way. Hon’ble Justice Sri. S. Rajeswaran participated as Chief Guest and inaugurated the State convention by lighting up the Traditional Lamp (Kuthuvilakku)
Mr. K. Venkatesan, Chairman, Southern Centre welcomed the gathering and in particular Mr. Ravi Wig , Member – Central Board of Trustees – EPF and Mr. Raju John, Executive Secretary, Head Quarters BAI. Mr. M. Thrusangu, State Chairman – Tamil nadu, Puducherry & Andaman Nicobar Islands made the presidential address.
All India Past President Mr. R. Radhakrihsnan and Vice President Mr. Mu. Moahan participated as Special Guest and addressed on the issues faced by the Builders fraternity.
Hon’ble Justice Sri. S. Rajeswaran in his concluding speech advised the Builders fraternity. Due to scarcity of river sand he suggested to come forward to use M-Sand. In most of the Foreign countries the bridges are built by using total steel. That method can be tried in our country also. The agreements made for the projects should not be violated on any reason. By maintaining unity among the builders many issues can be solved amicably. Everybody should be happy always. More than 700 members from all over Tamil Nadu, Puducherry & Andaman Nocobar Islands have participated in the state convention. Mr. S. Ramaprabhu thanked Hon’ble Justice Shri. R. Rajeswaran, All India Past President Mr. R. Radhakrishnan, Vice President Mr. Mu. Moahan, State Chairman Mr. M. Thirusangu, Organizing Committee Chairman Mr. R. Sivakumar, Co Chairman Mr. O.K. Selvaraj, State Secretary Mr. S. Ayyanathan members from Southern Centre, members from all over Tamil Nadu, Puducherry & Andaman Nicobar Islands various Centre Chairmen, Special invitees and sponsors of various organizations . Special dinner was provided to all the participants.
Sri. Narayanappa, Central Additional Chief Provident fund Commissioner addressed about Provident Fund as detailed below
Mr. Narayanappa thanked the Builders Association of India and the organizers for including Provident fund in the Technical session of State Convention and giving the opportunity to convey their initiatives in respect of Provident Fund benefit to the workers.
In the year 1980 Building and Construction was brought under Provident Fund Coverage. He felt that so many years have been passed but the benefit has not been reached to the workers. The reasons are so many and so many cases have under gone in the court. Major issue in the Construction Industry is the employee will not stay longer for one job. So whatever Provident Fund amount paid will not reach to the employee. The unpaid amount will go to inoperative account / unclaimed account. Therefore the purpose of provident fund benefit get failed. That is the main issue has been raised. For that reason all of you and Seniors advocated to come up with totability of members. The Provident Fund members. That means even if the employee change his employment, the number should remain the same.
Earlier concept was if an employee worked in one company / Establishment he will get one PF account number and if he change his employment in the new place he will get another PF Account No for which he has to transfer the previous amount. For transferring the amount it will take 2 or 3 months even for Rs.500/- or Rs.1000/-. Because of this reason and to address this point, PF organization has come up with UAN – Universal Account number in the year 2014. If once Universal Account number is allotted, it is final and life long for the workers. Even if the employee works any number of companies, the UAN number will remain same. Only thing is he has to inform new employer that he has already having PF A/c. No. That will be taken care by the new employer. The previous amount will be automatically transferred. For example, an employee might have worked in Chennai for six months and next year he might have gone to Bombay. Even that place also the PF Account will be taken care of previous service and previous benefit. Provident Fund applies to the establishment having 20 or more employees in the activities of construction. As per the act the Employer has to recover 12% from the Employee and he has to make maximum contribution and addition of 0.5% towards insurance and administrative charges also he has to pay. Two years before addministrative charges was 1.10% and reduced to 0.86% in the year 2015. This year again reduced to 0.65%. That notification likely to come. Already approved by Government and awaiting clearance from Election Commission.
Our Administrative efficiency has been increased due to computerization and that benefit has been passed on to the Employer since the administrative charges has been paid by the Employer. These administrative charges being used for the day to day administration to extend the benefit. Other funds will not be touched. That is why we are coming nearer to the employer to reduce their burden of payment. All along there is an argument for certain years, whatever reason, Provident Fund registration has not been done by certain Employer. If they wanted to do registration, all along it is said that sir our office is asking for coverage of employment for last 6 years or 10 years. If you want to register, total amount of Employee share & Employer share for the last 6 years has to pay. Let it be existed the prospective days. We are ready to comply. This is the argument. But I cannot change the act. To address this problem Government has come up with one scheme- MSD Scheme. Today’s purpose of the meeting to convey what are the elements in this scheme that you will have to clarify and you have to come forward to extend the Provident Fund benefit.
The new scheme PMRPY – Pradham Mantri Rozdar Yojana will be implemented from April 2017. In this new scheme employee’s UAN (Universal Account Number) will be linked with AADHAR NO. The employer need not pay 8.33%. The employee share of 12% plus 3.67%, total 15.67% only has to pay by the Employer.
Finally he appealed to all the Builders Promoters and Contractors to register their Organisation with the Provident Fund Organisation and enroll their employees with the Provident fund so that the Provident Fund benefits will reach to the employees at large.
Mr. Kulkarni, Additional Central Commissioner – Tamil nadu& Kerala also addressed on Provident Fund. Mr. D. Remmei, Mr. Sailesh Shankar Regional Commissioners, Chennai have participated the Technical Session.
Mr. C. A. Gopalakrishnaraju – Regional Council Member – ICAI addressed on the Goods and service tax as detailed below.
He explained the reason for proposed GST. At present existing taxes of Central Government are – Service Tax, Excise duty, CST, Customs duty etc. State Govt. Taxes are – VAT, Entry Tax, Luxury Tax, Purchase Tax, Octroi tax and Entertainment tax etc. Registration to be done with all the taxation agencies.
He has predicted that it will take another six months more to implement the GST. Only after knowing GST and abatement for land value, we can judge the effect on Real Estate.
He has requested Builders Association of India to clarify thoroughly about Goods and Service tax by organizing seminars. Also wanted to conduct small Training Programmes on GST to empower employees for effective workability on GST.
Valedictory function of State Convention was held at Chennai Trade Centre, Convention Hall at 6.30 pm under the president ship of Mr. M. Thirusangu, State Chairman, Tamil Nadu, Puducherry & Andaman Nicobar Islands. Chairman, Southern Centre, Mr. K. Venkatesan welcomed the gathering. He has appreciated the organizing Committee Chairman Mr. R. Sivakumar, Co-Chairman Mr. O.K. Selvaraj, and Chairmen of various committee and Committee members for their untiring work to make the event a grand success.
Mr. M. Thirusangu explained the resolutions passed in the state convention.
All India Past President Mr. R.Radhakrishnan made the key not address. Mr. Mu. Moahan , Vice President participated as Guest of Honour and addressed Mr. M. Thirusangu – State Chairman, Tamil Nadu, Puducherry & Andaman Nicobar Islands and Mr. Mu. Moahan, Vice President were honoured with shawl and presenting memento for their one year tireless service to the fraternity.
Mr. C.K. Kumaravel, Co-Founder of Natural Saloon Chain made motivation speech. In his speech he said we cannot change the society, the country or Politician. We have to change ourselves. We have to act like Mahatma Gandhi as lone person. On behalf of Southern Centre Mr. Kumaravel was honoured by Presenting memento. At the end of the valedictory function Mr. S. Ramaprabhu, Secretary paid vote of thanks.