Challenges in obtaining registration under Shops & Establishment Act, Karnataka

Karnataka State Chartered Accountants Association (R.) (KSCAA) addresses the Department of Labour, Government of Karnataka, with a representation on the challenges faced in obtaining registration under the Shops and Establishment Act. Representation sheds light on the difficulties encountered by businesses and emphasizes the importance of streamlining processes to facilitate a smoother operational environment.

The representation focuses on the Karnataka Shops and Commercial Establishments Act of 1961, along with a circular issued by the Department of Labour, directing the elimination of inspection requirements and the issuance of instant registration certificates. It highlights the discrepancy between the circular’s instructions and the actual practice, emphasizing the need for proper implementation and software modifications. KSCAA urges the authorities to consider their recommendations and take necessary actions to address the challenges faced in obtaining registration under the Shops and Establishment Act.

KARNATAKA STATE CHARTERED ACCOUNTANTS ASSOCIATION (R.)

Date: Wednesday, June 14, 2023

To,
Whosoever it may concern,
The Department of Labour,
Government of Karnataka

Respected Sir/Ma’am,

SUBJECT: Representation on challenges faced in obtaining registration under the Shops and Establishment Act, Karnataka

The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA’) is an association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in the year 1957. In the past, we have written to various authorities many times populating various issues, challenges and hardships being faced by the business community, while also suggesting possible solutions to the same.

The Prime Minister, Shri Narendra Modi, said[1] that it is necessary to reduce human intervention in processes, and increase the use of modern and digital technologies. He said that a work culture based on this, will further promote policy driven governance.

Through this representation, we would like to bring to your kind notice, a few practical issues being faced by the community. These difficulties can have a significant impact on an individual’s or organization’s ability to operate and achieve their goals. It is important to acknowledge these difficulties and work towards finding a resolution. This could include simplifying the process, grant of instant registration, reducing wait times, elimination of human intervention and making it easier to navigate the requirements and procedures.

For every issue, challenge or hardship highlighted, we have also suggested solutions.

1. The Karnataka Shops and Commercial Establishments Act was enacted in 1961 to provide for the regulation of conditions of work and employment in shops and commercial establishments. Section 4 of the Act contains the provisions regarding the Registration of Establishments under the Act.

2. In relation to this, your department (the Department of Labour, Government of Karnataka) issued a circular dated 13.02.2020, clearly directing the senior labour inspectors/labour inspectors to eliminate the requirement of inspection prior to registration. Further, it was directed to generate an instant Registration Certificate upon receipt of the application. A copy of the relevant circular is enclosed herewith.

3. However, we wish to highlight before your good selves that instant registration certificates are not being issued upon submitting the application. Instead, applications are delayed and kept “under processing” for a long time and in some cases, rejected without inspection.

4. We request your good selves to issue appropriate instructions to the inspectors and where needed, make appropriate changes/ modifications to the software/website.

We believe that by addressing these challenges and finding a resolution, we can create a more efficient and effective registration process that benefits everyone. We look forward to working with the relevant authorities to find a solution that addresses the difficulties in obtaining registration.

We are presenting before you the above-enumerated issues, challenges and hardships faced by the taxpayers, trade, industry and professionals due to the lack of implementation of the provisions of the law.  Wherever required, we have also given recommendations for your kind consideration.

We the members of Karnataka State Chartered Accountants Association, on behalf of the entire Chartered Accountants fraternity and also on behalf of the trade and industry in the state of Karnataka appeal to your good selves to kindly consider our above recommendations on various issues populated as above. Implementation of the above suggestions will be a major step in the direction of ‘Ease of doing business’.

Yours sincerely,

For Karnataka State Chartered Accountants Association ®

[1] 19 NOV 2018 8:09PM by PIB Delhi ‘PM launches Ease of Doing Business Grand Challenge, addresses cross-section of Industry representatives’