running a godown by a govt employee in tamil nadu
Sasikumar
(Querist) 07 July 2013
This query is : Resolved
a govt employee is running a godown for rent. is it allowed or it is to be treated as business?
Guest
(Expert) 07 July 2013
Mr. Auditor,
What do you mean by RUNNING a godown? If you let your house on rent, would you be running a business? It is a matter of commonsense that the employee is renting his own property, not running a business of sale purchase or manufacture and supply.
Sudhir Kumar, Advocate
(Expert) 07 July 2013
not allowed. Trade of godown means that one gives the place on rent and takes care of goods by employing servants and also by employing loading labour (at times more than 20).
Sasikumar
(Querist) 07 July 2013
Thanks u all.
Sasikumar
(Querist) 07 July 2013
Dear Sudhir,
Renting out a house is not considered as business. Godown is also the same nature.
Guest
(Expert) 07 July 2013
@ Sudhir Kumar,
I differ with your views, "not allowed," by treating renting of godown as a business. Any reason for presuming in the absence of details by the querist that the employee would really be taking care of goods by self or by employing servants? The querist has not given any detail of the case, except by stating, "running a godown for rent." Rathr, Mr. Sasi Kumar, the querist, has already realised the truth.
Moreiver, duties of an internal auditor restricted to the internal audit of the managerial functions and official accounts and not to peep in to the private lives of the officials.
Rajendra K Goyal
(Expert) 07 July 2013
Well advised by the expert PS Dhingra dcgroup1962 ji. nothing more to add.
Sasikumar
(Querist) 08 July 2013
Thanks u all for ur reply.
Let me explain the fact. A govt teacher is owning a go down on her name & a staff is employed to take care of the go down. loading & unloading are taken care by local people. Go down owner has no role in case of loading & unloading.
Guest
(Expert) 09 July 2013
@Sudhir Kumar,
Please see the reply of the querist, as desired.
Raj Kumar Makkad
(Expert) 09 July 2013
There is no legal hurdle to rent out a godown in the given facts.
Sudhir Kumar, Advocate
(Expert) 12 July 2013
This may not amount to undertaking private business within the meaning of conduct rules.
