PF APPLICABILITY

[umes kejriwal]

Dear All, One of my client, a private limited company, is having around 200 employees. All the employees basic salary is more than 6500/- p.m. i.e. the minimum criteria in PF act.  on a plain reading it is found that if an establishment is employng 20 or more pesons : PF Act is attracted. The question is whether registration under Employees PF act is mandatory even if no. of employees exceeds 20 but all employee's basic salary exceeds 6500/- ? Thanks & regards, CA Umes Kejriwal 9836431715/9051016948

[KIRTI TULSYAN]

To my mind registration is necessary.There is no bar to any person whose salary is higher then Rs 6500 per month from beicoming a member of a PF scheme .i think there is only an option available to the employee drawing such remuneration in that he can decide either to  either participate or not to participate in the  Pf .
regards
kalidas
 

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Date: Fri, 19 Apr 2013 22:56:26 -0700
From: umeskejr...@yahoo.com
Subject: [CA RUNGTA PD] PF APPLICABILITY

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Best Regards, 
Kirti Tulsyan
B.Com.,ACA,CS


P.D.Rungta & Co. 
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[DEBA PRATIM GHATAK]

The max salary of 6,500 is applicable for deduction and contribution only. When salary is beyond 6,500 the deduction and contribution can be restricted to Rs 780 (@ 12% of 6500). Say if teh salary is 10 lakhs, the deduction and contribution need not be @ 1,20,000 per month and can be restricted to 780. The 20 employees norm is applicable irrespective of the level of salary of all 20 employees. Once employees cross 20, registration and liablity is mandatory. The contribution and deduction can however be calculated as above but the company is not absolved of the liability. So iny our case registration is mandatory. CA Debu Ghatak, Durgapur 09434474982     --- On Sat, 20/4/13, umes kejriwal <umeskejr...@yahoo.com> wrote:

From: umes kejriwal <umeskejr...@yahoo.com> Subject: [CA RUNGTA PD] PF APPLICABILITY

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[pankaj sharma]

Dear Mr. Umesh,

With reference to your query on PF registration, please go through the following.

1) PF act is applicable to every establishment having more than 20 employees.

2) The salary as per PF act RS. 6500 per month consisting of Basic and Dearness Allowance. Hence PF to be deducted on amount of       6500 i.e. Rs. 780 even if the salary as per PF act is above Rs. 6500.

3) The company must deduct PF of all employees who were registered in PF Act in their previous employement. However, its upon the option of the employees of the company to get registered with PF if their salary is above 6500 and has never been registered before under PF Act.

Hence, its mandatory for the company to get PF registration if any of the employee among 200 was a member of PF Act in previous employment even though he is drawing a salary greater than 650.

Hope the above will meet your query.

Thanks & Regards

CA Pankaj Sharma

For Pankaj B Sharma & Associates.

901-904, Jagdamba commercial complex A/2,

Near movie time theater, LInk road,

Malad (W), Mumbai-400 064.

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[KIRTI TULSYAN]

Dear All, 
One of my client, a private limited company, is having around 200 employees. 
All the employees basic salary is more than 6500/- p.m. i.e. the minimum 
criteria in PF act. 
on a plain reading it is found that if an establishment is employng 20 or 
more pesons : PF Act is attracted. 
The question is whether registration under Employees PF act is mandatory 
even if no. of employees exceeds 20 but all employee's basic salary exceeds 
6500/- ? 
Thanks & regards, 
CA Umes Kejriwal9836431715/9051016948 

REPLY 1

 

In this case although number of employees are more than 20, the 
company has option to take registartion it is voluntary and not 
mandatory since all employees are drawing more than Rs 6500 . 

Regards 

S.ghose 
9831095373 

REPLY 2

Hi, 

Yes, it is mandatory to take PF registration as soon as no. of employees in 
the organisation reaches the limit of 20 because as per Provident Fund 
provisions an employer should deduct PF even if basic is above 6500/ p.m 
unless & until there is a mutual agreement between employee & employer for 
non deduction.So, whether Pf deduction is there or not is a secondary 
issue.We have to see the limit i,e 20 for getting registered under PF. 

priyanka lath

[farhana...@gmail.com]

do we required to reg for pf if we have more then one branch & 20employees in each branches

[yogesh kumar tyagi]

Dear All,

APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT '1952
The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to the whole India
except Jammu & Kashmir.

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:
Every establishment which is engaged in any one or more of the industries specified in Schedule
I of the Act or any activity notified by Central Government in the Official Gazette.
Employing 20 or more persons .
Cinema Theatres employing 5 or more persons.
The Act does not apply to:
The co-operative societies employing less than 50 persons and working without the aid of power.
16(1)(a)
The establishment to which this Act applies shall continue to be governed by this Act , even if
the number of employees falls below 20 at a later date. [ 1(5)].
16(1)(b) Establishments under the control of state/central Govt.& employees who are getting
benefits in the nature of 16(1) (b) contributory P.F. or old age pension as per rules framed by
the Govt.
16(1)(c) Establishment set up under any central, provincial or state act and the employees who
are getting benefits in the nature of contributory P.F. or old age pension as per rules.

A member is required to contribute compulsorily upto Rs. 6500/- of his wages and he may
voluntarily opt to contribute beyond the wage ceiling of Rs. 6500/- (i.e. upto his wages).
During the course of membership, if the wages (Basic + Dearness Allowance including cash value
of food concession and Retaining allowances) has crossed Rs. 6500/- the member and employer are
required to pay PF contribution at least upto Rs. 6500/- only.

The above statement clarify that when no. of employees touch the limit 20, act will be
applicable and registration is compulsory and PF to be deducted up to Rs. 6500/- P.M. of his
wages.

Regards

CS Yogesh Tyagi

On Thu, 27 Feb 2014 11:10:33 +0530 wrote

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Thanks & Regards
CS YOGESH KUMAR TYAGI
B.Sc, M.B.A.(M), M.B.A.(F), LL.B., ACS
COMPANY SECRETARY
(M)9873009530

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[Aloke Ray]

Yes, registration is compulsory.  If the salary of all the staff is above Rs 6,500.00 then they become excluded employees and hence no PF deduction is required.

 

Registration is not dependent on the salaries paid but on the number of employees. Administration charges of Rs 7.00 pm is payable for PF and EDLI.

 

If you want any further assistance with this we can provide you the same.

 

Please email alok...@hotmail.com

 

Regards

 

Aloke  

 

Sent from Windows Mail

 

[DEBA PRATIM GHATAK]

Hi Aloke,
I think the 6500 limit is the maximum wages limit and not exempted/excluded limit. I mean PF contribution of employer shall be 12% of 6500 (780) at the max irrespective of the salary he is receiving. So if an employee is getting a salary of 50,000, employers' contribution to PF shall be 780 at teh max. But the employer is not exempted from making contribution. Exemption is applicable in ESIC only. Please check your facts and get back since I may be wrong also.
DP Ghatak, Durgapur
9434474982
--------------------------------------------
On Fri, 28/2/14, Aloke Ray <alok...@hotmail.com> wrote:

Subject: Re: [CA RUNGTA PD] Re: PF APPLICABILITY
To: "foru...@googlegroups.com" <foru...@googlegroups.com>
Cc: "echange-pro...@googlegroups.com" <echange-pro...@googlegroups.com>
Date: Friday, 28 February, 2014, 1:31 PM