PF ceiling

Manish.Kumar · #1 (**permalink**) 18-08-2007, 04:06 PM

Dear All,
When a company has been contributing on actual basic to Provident Fund viz. the employees those are getting basic Rs. 10000, the company contributes 12% on 10000.

While the company has optional right to contribute on basic limited to
Rs. 6500.

My question is here can the company divert for PF contribution and deduct and contribute on the the ceiling basic i.e. Rs. 6500 from a fresh FY. Where since the begining company has been contributing to PF on actual basic.

My another question is can the company apply the PF ceiling Rs, 6500 for new entrants.

rgds.
Manish Kumar

bhushan dahanukar · #2 (**permalink**) 20-08-2007, 01:46 PM

Dear Manish,

Similar situation , I faced in of my earlier company. We have consulted with PF authorities in this regard.
In this case, since the co. is contributing 12% since beging if the salary limit beyond ceiling amount. You need to continue with the same practise because the you cannot reduce PF wages once you declared in the PF annual returns.
You can apply the ceiling limit to new entrants. Even their basic is more than Rs. 6500/-, you need to show PF wages upto Rs. 6500/- in PF records.
I suggest, you can still check with your legal counsel and PF authority.

regs
Bhushan

pbskumar2006 · #3 (**permalink**) 20-08-2007, 01:57 PM

Dear Friends,

The same thing is facing by me also, but in this aspect the PF authorities may not interfear. Since the statutory limt is Rs.6500/- being paid or not.
But , if the employee willing to contribute more voluntrarly no objections.

Regards,

PBS KUMAR

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