Dear All,
Can anybody suggest me on this situation, A company incorporated in 2006-07 having 150 employees, as of now it has not registered under any PF, ESI, PT Act and also it has not filed its Annual Returns with ROC (unknowingly).
Now Co. has roughly calculated the PF Liability i.e. Rs.30Lakhs, since it has not deducted any amount from Employees it doesn't want to contribute such a huge amount.
Can it be rectified by registering now? will the Dept of PF/ESI/PT ask for the previous data? What kind of penalties can attract now?
Shall the company go forward and register or silently shall it windup and format a new company.
am :confused: please help me out.
From India, Bangalore
Can anybody suggest me on this situation, A company incorporated in 2006-07 having 150 employees, as of now it has not registered under any PF, ESI, PT Act and also it has not filed its Annual Returns with ROC (unknowingly).
Now Co. has roughly calculated the PF Liability i.e. Rs.30Lakhs, since it has not deducted any amount from Employees it doesn't want to contribute such a huge amount.
Can it be rectified by registering now? will the Dept of PF/ESI/PT ask for the previous data? What kind of penalties can attract now?
Shall the company go forward and register or silently shall it windup and format a new company.
am :confused: please help me out.
From India, Bangalore
Hi,
You just find out when the employee numbers crossed 20+,from that day onwards pf is applicable.
As you are going for the first time for the PF Registration,you have an option to calculate PF in this manner ,
if any employee basic salary is more than 6500,make it restricted to 6500 for employee and employer contribution.
So On an avg employee/er contribution is 780 (6500*12%).
And also you can request the PF Authority to wavier the Employee contribution amount for that period ,as you have not deducted from employees salaries.
Regards,
Rsritha
From India, Hyderabad
6You just find out when the employee numbers crossed 20+,from that day onwards pf is applicable.
As you are going for the first time for the PF Registration,you have an option to calculate PF in this manner ,
if any employee basic salary is more than 6500,make it restricted to 6500 for employee and employer contribution.
So On an avg employee/er contribution is 780 (6500*12%).
And also you can request the PF Authority to wavier the Employee contribution amount for that period ,as you have not deducted from employees salaries.
Regards,
Rsritha
From India, Hyderabad
Dear Members,
I think we need to set the record stright...
The liability of Employer for complance under PF Act, is from the date of applicability of the act, to the establishment. It can not be wished away. The employer is under obligation to remit his part of contributions under section 6 TOGEATHER with Employees' contribution + administration charges + inspection charges.
Section 8A of the act authorises the employer to deduct the employees' contribution from the wages of the concerned, as a statutory contribution payable or as DEBT.
The PF inspectors are entitled to charge the employer for non complaince under section 7A of the act. Such proceedings can be very tormenting and employer could feel harassed, besides facing auction of assets by PF authorities to realise the workers legitimate PF dues.
Sonuayesha, It is my considered opinion that:
1.You should approach the territorial RPFC with all relevant records and come clean with facts; assess your liabilities and deposit the money.
2.Notify all employees in respect of whom you have deposited PF dues, to come and deposit their share of contribution in your office. In case they fail to do it, initiate recovery proceedings in a court of law.
As a HR professional you should ALWAYS render sound advise, which will deliver mental peace to the employees and employers alike. Any suggestion from any quarter for denying legitimate dues to employees should be summarily rejected, as your loyalties rest with employees during such decision event.
From India, Changanacheri
I think we need to set the record stright...
The liability of Employer for complance under PF Act, is from the date of applicability of the act, to the establishment. It can not be wished away. The employer is under obligation to remit his part of contributions under section 6 TOGEATHER with Employees' contribution + administration charges + inspection charges.
Section 8A of the act authorises the employer to deduct the employees' contribution from the wages of the concerned, as a statutory contribution payable or as DEBT.
The PF inspectors are entitled to charge the employer for non complaince under section 7A of the act. Such proceedings can be very tormenting and employer could feel harassed, besides facing auction of assets by PF authorities to realise the workers legitimate PF dues.
Sonuayesha, It is my considered opinion that:
1.You should approach the territorial RPFC with all relevant records and come clean with facts; assess your liabilities and deposit the money.
2.Notify all employees in respect of whom you have deposited PF dues, to come and deposit their share of contribution in your office. In case they fail to do it, initiate recovery proceedings in a court of law.
As a HR professional you should ALWAYS render sound advise, which will deliver mental peace to the employees and employers alike. Any suggestion from any quarter for denying legitimate dues to employees should be summarily rejected, as your loyalties rest with employees during such decision event.
From India, Changanacheri
Dear All,
First of all by rule you have to assess all the liability and remit the money accordingly still you have not deducted the employee share.
But if you have very few employee now a date from which you have not deducted a employee share you can request a PF commissioner for a waiver of all (or at least employee share). Though it is difficult to obtain such waiver but not impossible. (by rule it can be give)
Best Regards
From India, Nagpur
First of all by rule you have to assess all the liability and remit the money accordingly still you have not deducted the employee share.
But if you have very few employee now a date from which you have not deducted a employee share you can request a PF commissioner for a waiver of all (or at least employee share). Though it is difficult to obtain such waiver but not impossible. (by rule it can be give)
Best Regards
From India, Nagpur
I agree with Mr. Murthy, you need to come clean to the authorities and they will help you to rectify all matters.
From India, Mumbai
From India, Mumbai
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls