1.5 Query

Whether payment of salaries through bank transfers is conclusive

evidence that the salaries have been paid.

1. A society registered under a state Societies Registration Act, 1960, conducting research in Genetic Engineering and Biotechnology (hereinafter referred to as Research Association) has employed about 50 members consisting of scientists, accounts staff and administration staff. The staff members have agreed for the payment of their salaries through bank transfers. Accordingly, the arrangement is made for the payment of staff salaries through bank transfer. A copy of the pay slip of each employee is furnished to the employee giving the details of his gross salary earned, deductions therefrom and the net amount credited to his bank account. The employees wanted a clarification as to the need for singning such payslips, since according to some of them, in other similar institutions, where they were earlier employed, no signature was being insisted upon. They have requested for an authoritative clarification in this regard, before accepting to sign the payslips.

2. The querist has sought the opinion of the Expert Advisory Committee as to whether the bank transfer by itself is the conclusive evidence of payment of salaries to the individual employees or should it necessarily be supported by the signature of employees on their payslips across a revenue stamp.

                                                                                   Opinion                        December 3, 1987

The Committee is of the opinion that payment of salaries to the employees by means of bank transfers to their bank accounts is, by itself, a conclusive evidence of payment of salaries to the individual employees, provided the transfers are made as per the prior written consent from the employees, since otherwise, it could be argued that the transfers are not on account of the salaries but on some other account.

_______________________________

___________________________