EPFO and the Indian Seafarer - a perspective (and opening gambit - service tax)

Some of us may recall the big scandal with the Seaman's Provident Fund, which had vanished as part of the even bigger Home Trade scam, some slight details of which are here:-

http://www.dnaindia.com/mumbai/report_sailors-get-back-their-lost-pf_1067316

This was, in value terms, amongst the top 10 scams - considering that the Bofors scam was about all of about 25-40 crores. Ofcourse, scam levels have gone up now, and just one small builder EPFO scam in Delhi (kashyaps) has a figure of about 170 crores to it.

As far as Indian seafarers working on Indian or foreign flag ships are concerned, the matter is now moving up rapidly, and exemption granted to shipping companies and shipmanagement companies as a special case under the Seaman's Provident Fund Act and Amendment is being looked into. In any case, it is not possible that a "special" act for Indian seafarers should provide lesser provident fund for Indian seafarers!!

More on that later, there are many angles to it, including the definition of the word "employer", but here's an article I wrote on EPFO issues which might be of interest. As Indian seafarers, you may wish to ask your employer, too, about this.

http://moneylife.in/article/your-epfo-savings-could-be-at-risk-unless-you-secure-some-important-aspects-yourself/18329.html

The bigger issue here is this - for many Indian seafarers working on Indian or even foreign flag ships on contractual basis, the issue of service tax to be levied by the contractor (seafarer) on the shipping company / shipmanager, is being looked at. So, in other words, if you are working on "contract" wages, then be aware that you may be liable to charge service tax. Please do check with your tax consultant here, too.

And the question to our friends at DGS, soon in the form of an RTI, will be this:- how is the Seaman's Provident Fund giving lower returns than the Employees Provident Fund Organisation (EPFO)? The whole concept of an "exempted" category under the various Acts and Rules underlines the simple fact that a "special" provident fund will provide better returns than the "normal' EPFO.

Big question, that. If you look at the answer carefully, then Indian seafarers, whether on Indian flag or foreign flag, are served far better by being covered under the EPFO - just like any other "international worker". More on that soon, too . . .

National maritime Day / Delhi / 2011

http://www.flickr.com/photos/vm2827/5594445884/

National Maritime Day was celebrated in Delhi, variously, and as per PTI, here is the official report:-

"National Maritime Day celebrated. New Delhi, Apr 5 (PTI) The week-long celebrations to mark National Maritime day aimed creating awareness about the activities of Indian Shipping industry, also called ''silent service'', culminated today. Every year April 5 is celebrated as the National Maritime day. It was on April 5 in 1919 that the first Indian steamship ''S.S. LOYALTY'' of Scindia Steam Navigation, Mumbai, ventured into international waters on her voyage from Mumbai to London."

Whether that statement repeated every year with minor variations is correct or not is for all of you to judge. All I know is that it is about time something more was done than the usual repeated flag hoisting, badge pinning, one-way seminars and cultural programmes. We have to move with the times, and while it is wonderful that the National Maritime Day Celebrations Committee works hard every year on this, there need to be some fresh inputs. At least, by 2019, and which would mark a hundred years.

Put it this way - sea transport is probably still moving largely at the same speed over water as it was in 1919, most ships even now function best at the 12-18 knot range, barring faster container and similar ships. But the rest of the world, whether in the air, on ground or over the internet - has moved on. By multiples.

So here's what SAILOR TODAY, after talking with some seafarers ashore, would like to see in future National Maritime Day celebrations:-

1) The venue needs to be advertised some more, using social media like facebook and twitter, as well as through the shipping websites. DG Shipping and MMD websites need to carry details in advance on bearing and distance as well as timelines for all events under the NMD celebrations. This is extremely easy, and will cost nothing.

2) The venue itself, atleast in Delhi, needs to be closer to places where public transport is available. IGNOU campus is very pretty, the surroundings are no doubt sylvan, but it takes forever to get there. And once there, the pathetic sight of seeing cadets boarding local "grameen seva" transport to get back is indeed miserable.

3) NMD should also be accompanied by some sort of future job counselling for the young cadets who take the effort to put up the grand show they did. Recruitment seems to be the biggest worry and concern for many of the youngsters heading out to sea, and this event should be used for voluntary work by people who are still at sea to give some frank and cogent as well as practical advice.

4) Efforts by those who volunteered this year should not be trivialised either - but the number of people coming forward should be somehow increased. One way would be to hold regular "open house" functions at
 MMD/NOIDA, where new people can be encouraged to take part in NMD celebrations.

5) Some amount of co-operation and co-ordination can always be sought from the Armed Forces, especially Indian Navy and Coast Guard, to make the bond between our Services stronger. Especially in these days of extremely high piracy in and around Indian waters, we need to be able to offer our thanks to them as well as seek better relationships.

6) There is a lot that needs to be improved at MMD and DGS, if we do not want to see it getting wrong exposure of the DGCA sort. Towards that, occasions like the NMD should also be used to improve matters, with introspection and free and frank debate.

7) And finally, it is time that the whole thing on SS LOYALTY moved ahead. Many great steps have been taken by and in the Indian Merchant Navy - and they need to be brought out, documented and most of all - celebrated.

We hope that the people in power will take these suggestions from our readers in the correct spirit, and we hope to have greater and better NMD celebrations in the near future.

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The biggest worry that young cadets at the NMD celebrations nationwide have is about their future. With the big mess that is education in the ongoing IMU and DGS systems tussle confusing matters in the minds of the young and impressionable, some amount of clarity and direction, sustainable, needs to be declared, and no occasion better than the NMD celebrations to do so.

To ignore this reality would be doing a great dis-service to the youngsters who put in so much effort for a stellar performance.