law: Payment of Bonus Act, 1965 
  16. Special provisions with respect to certain
  
  establishments 
   17  [(1) Where an establishment is newly set up, whether
  
  before or after the commencement of this Act, the employees of such
  
  establishment shall be entitled to be paid bonus under this Act in accordance
  
  with the provisions of sub-sections (1A) (1B) and (1C).
  (1A) In the first five accounting years following the accounting
  
  year in which the employer sells the goods produced or manufactured by him or
  
  renders services, as the case may be, from such establishment, bonus shall be
  
  payable only in respect of the accounting year in which the employer derives
  
  profit from such establishment and such bonus shall be calculated in accordance
  
  with the provisions of this Act in relation to that year but without applying
  
  the provisions of section 15.
  (1B) For the sixth and seventh accounting years following the
  
  accounting year in which the employer sells the goods produced or manufactured
  
  by him or renders services, as the case may be, from such establishment, the provisions
  
  of section 15 shall apply subject to the following modifications, namely,- 
  ( i ) for the sixth
  
  accounting year,- 
  set on or set off, as the case may be, shall
  
  be made in the manner illustrated in the 18[Fourth Schedule] taking into
  
  account the excess or deficiency, if any as the case may be, of the allocable
  
  surplus set on or set off in respect of the fifth and sixth accounting years;
  (ii) for the seventh accounting year,- 
  set on or set off, as the case may be, shall
  
  be made in the manner illustrated in the 18[Fourth Schedule] taking
  
  into account the excess or deficiency, if any as the case may be, of the
  
  allocable surplus set on or set off in respect of the fifth, sixth and seventh
  
  accounting years.
  (1C) From the eighth accounting year following the accounting
  
  year in which the employer sells the goods produced or manufactured by him or
  
  renders services, as the case may be, from such establishment, the provisions
  
  of section 15 shall apply in relation to such establishment as they apply in
  
  relation to any other establishment.
  Explanation I .  For the purpose of sub-section (1), an
  
  establishment shall not be deemed to be newly set up merely by reason of a
  
  change in its location, management name or ownership.
  Explanation II :  For the purpose of sub-section (1A), an
  
  employer shall not be deemed to have derived profit in any accounting year
  
  unless,- 
  (a) he has made provision for that year's depreciation to which
  
  he is entitled under the Income Tax Act or, as the case may be., under the
  
  agricultural income tax law, and
  (b) the arrears of such depreciation and losses incurred by him
  
  in respect of the establishment for the previous accounting years have been
  
  fully set off against his profits.
  Explanation III:  For the purposes of sub-section (1A),
  
  (1B) and (1C), sale of the goods produced or manufactured during the course of
  
  the trial running of any factory or of the prospecting stage of any mine or an
  
  oil-field shall not be taken into consideration and where any question arises with
  
  regard to such production or manufacture, the decision of the appropriate
  
  government made after giving the parties a reasonable opportunity of
  
  representing the case, shall be final and shall not be called in question by
  
  any court or other authority.]
  (2) The provisions of 19[sub-sections (1), (1A), (1B)
  
  and (1C)] shall, so far as may be, apply to new departments or undertakings or
  
  branches set up by existing establishments:
  PROVIDED  that if an employer in relation to an existing
  
  establishment consisting of different departments or undertakings or branches
  
  (whether or not in the same industry) set up at different periods has, before
  
  the 29th May, 1965, been paying bonus to the employees of all such departments
  
  or undertakings or branches irrespective of the date on which such departments
  
  or undertakings or branches were set up, on the basis of the consolidated
  
  profits computed in respect of all such departments or undertakings or
  
  branches, then, such employer shall be liable to pay bonus in accordance with
  
  the provisions of this Act to the employees of all such departments or
  
  undertakings or branches (whether set up before or after that date) on the
  
  basis of the consolidated profits computed as aforesaid.