Dear Frnds,
I would like to know if a Company A & Company B is owning by a single Director and Company A is under PF contribution but Company B is having 3-8employee so as per act it was not contributing for PF.
I would like to know if COMPANY B is really coverable under PF or it is exempted(as per minimum number of employee for PF)?
Kindly clarify please
Reg
Anbarasu
From India, Chennai
I would like to know if a Company A & Company B is owning by a single Director and Company A is under PF contribution but Company B is having 3-8employee so as per act it was not contributing for PF.
I would like to know if COMPANY B is really coverable under PF or it is exempted(as per minimum number of employee for PF)?
Kindly clarify please
Reg
Anbarasu
From India, Chennai
hi Anbu,
1. You said both companies are owned by a single Director but tell me both companies are into the same business & in the same name or into different business & in the different name.
Because the director for these two companies may be the same but if these two companies are into different business in different name then you can not treat these two companies as one and hence the statutory implication for these two companies may be different based on the nature of the business, no of employees, Industry etc.
To my knowledge, there is no need to cover Company B under PF act as it has got below 20 employees in it.
Regards,
M.Kannan
From India, Madurai
1591. You said both companies are owned by a single Director but tell me both companies are into the same business & in the same name or into different business & in the different name.
Because the director for these two companies may be the same but if these two companies are into different business in different name then you can not treat these two companies as one and hence the statutory implication for these two companies may be different based on the nature of the business, no of employees, Industry etc.
To my knowledge, there is no need to cover Company B under PF act as it has got below 20 employees in it.
Regards,
M.Kannan
From India, Madurai
If the following points are jointly applicable to the two Co they can be clubbed together and the employees of the Co 'B' shall be covered under Co 'A'.
1-Unity of ownership
2-Unity of labour
3-Proximity
4-Same source of finance
5-Managed by same person
6-Same service condition
7-Functional integrity
8-Unity of purpose
9-Same book of a/c,balance sheet, bank a/c etc
Varghese Mathew
From India, Thiruvananthapuram
1-Unity of ownership
2-Unity of labour
3-Proximity
4-Same source of finance
5-Managed by same person
6-Same service condition
7-Functional integrity
8-Unity of purpose
9-Same book of a/c,balance sheet, bank a/c etc
Varghese Mathew
From India, Thiruvananthapuram
thank you sir..
Business is different but as per PF Inspector what mr.Varghese said is right..
they have been informing the same points.
Can you please share any documents or cases supporting this Mr.Varghese.,
Reg
Anbu
From India, Chennai
Business is different but as per PF Inspector what mr.Varghese said is right..
they have been informing the same points.
Can you please share any documents or cases supporting this Mr.Varghese.,
Reg
Anbu
From India, Chennai
If they are separate companies under companies act, then they can not be clubbed together.
The pf inspector can "pierce the veil" if he finds that the second company was formed only to avoid pf, and that the business comes from same sources and executed by the same team. Meaning that they employees do work of executing the orders for both the company.
From India, Mumbai
The pf inspector can "pierce the veil" if he finds that the second company was formed only to avoid pf, and that the business comes from same sources and executed by the same team. Meaning that they employees do work of executing the orders for both the company.
From India, Mumbai
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HC All - Trainees not covered for PF -2010.pdf