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Kuljit Pal Singh
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Manager Operations
Private Service (managar Hr)
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My organisation has been issued a notice by enforcement dept.u/s 7a of EPF & MP act 1952 for submission of relevant records. Now can anybody please clarify what are relevant records. Its urgent.
13th September 2008 From India, Hyderabad
Dear Friend
Well my friend this is serious issue....
This is a inquiry wherein the authority will throughly see all the records and penalise if not found ok.
The authority is having all the powers as civil court like examination of evidences(oral, documentary)
u have to provide all the documents like Income Tax Returns, PF returns, Wage registers, Muster rolls etc.
So better start gathering the informations on that basis.
13th September 2008 From India, Vadodara

As set out in the earlier post by Mr Singh it is a serious business & it is an inquiry which will fasten you with penal & monetary consequences :

7A. Determination of moneys due from employers. – (1) The Central Provident Fund Commissioner, any Additional Central Provident Fund Commissioner, any Deputy Provident Fund Commissioner, any Regional Provident Fund Commissioner or any Assistant Provident Fund Commissioner may, by order,
(a) in a case where a dispute arises regarding the applicability of this Act to an establishment, decide such dispute; and
(b) determine the amount due from any employer under any provision of this Act, the Scheme or the Pension Scheme or the Insurance Scheme, as the case may be,
and for any of the aforesaid purposes may conduct such inquiry as he may deem necessary.
(2) The officer conducting the inquiry under sub-section 1 shall, for the purposes of such inquiry have the same powers as are vested in a court under the code of Civil Procedure, 1908 (5 of 1908), for trying a suit in respect of the following matters, namely:-
(a) enforcing the attendance of any person or examining him on oath:
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavit;
(d) issuing commissions for the examination of witnesses,
and any such inquiry shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code 45 of 1960.
(3) No order shall be made under sub-section 1, unless the employer concerned is given a reasonable opportunity of representing his case.
(3A) Where the employer, employee or any other person required to attend the inquiry under sub-section 1 fails to attend such inquiry without assigning any valid reason or fails to produce any document or to file any report or return when called upon to do so, the officer conducting the inquiry may decide the applicability of the Act or determine the amount due from any employer, as the case may be, on the basis of the evidence adduced during such inquiry and other documents available on record.
(4) Where an order under sub-section 1 is passed against an employer ex-parte, he may, within three months from the date of communication of such order, apply to the officer for setting aside such order and if he satisfies the officer that the show cause notice was not duly served or that he was prevented by any sufficient cause from appearing when the inquiry was held, the officer shall make an order setting aside his earlier order and shall appoint a date for proceeding with the inquiry:
Provided that no such order shall be set aside merely on the ground that there has been an irregularity in the service of the show cause notice if the officer is satisfied that the employer had notice of the date of hearing and had sufficient time to appear before the officer.
Explanation.- Where an appeal has been preferred under this Act against an order passed ex parte and such appeal has been disposed of otherwise than on the ground that the appellant has withdrawn the appeal, no application shall lie under this sub-section for setting aside the ex parte order.
(5) No order passed under this section shall be set aside on any application under sub-section 4 unless notice thereof has been served on the opposite party.

Pls take local specialist legal advice,

With Regards

13th September 2008 From India, Bangalore
I had faced the inquiry when i was working with one manufacturing company, where we have to meet the P.F. Officer, and asked him , the details to be submitted before them, In our case, they have asked TDS & Bill passing records w.r.t. to each labour contractor, than they had verified with the P.F. deducted and remmitted to Regional P.F. Commissioner, Accordingly P.F. Officer will pass the order of amount to be deposited as a recovery , damages alongwith penalties with interest.
The best way to deal with P.F. authorities is to hire some legal consultant dealing with P.F, he will settle the matter in less liabilities to the company.

13th September 2008 From India, Thana
Dear Praveen,There are various reasons for issueing 7A and generraly it is issued when any company fails to submit the monthly contribution cuts, in this case without any physical inspection of Enforcement officer the authority from the office sent a summon for apperance in 7A.In other case after a surprise inspection of Emforcement officers and after varifying records, (they can also seize the record) they issue a 7A for the statment of the company.If the company had failed to deposite the contributions it is better to pay at least employees contribution to avoid any legal mattersThanks,rrtpan
15th September 2008
I am the consulatnt from Mumbai, if your company is in Mumbai or Thane region then I can assit you as a Consulatant
If you want any help pls mail me i will guide you in this matter
As other suggested pls get ready with your other finacial documents
15th September 2008 From India, Mumbai
You have to prepare a statement related to wages, contribution for the period for which you have been issued 7-A i.e. for the period for which you have been asked to produce records.
1. Apr to Mar of that year
a) PF Wge
b) A/c No.-1
c) A/c No.-2
d) A/c No. 10
e) A/c No. 21
f) A/c No. 22
Then Total of all heads.
and apart from that prepare a details report for every financial year (Month wise) regarding-:
1. Total No. of employees
2.) Exempted employees
3.) Basic Salary
4.) Salary ledger details for every month (Take help of a/c deptt.)
5. Exempted Salary
6.) Challan Amt.
7.) Date of deposit of challan
And find the difference which may come out in your salary register and whatever salary shown by a/c deptt. in the ledger. and try to find the cause of difference and remove that, the same thing you have to follow for your contractors also, they will have to give you their summary as per the details given above.
I hope this will help you.
16th September 2008 From India, Delhi
Dear Sirs,
We (principal employer) have recd an order under Sec 7A of the EPF & MP act 1952 for payment of dues,coz in our case, the establishment to which the work was alloted failed to remit the PF dues to the concerned authorities.
Also, the principal employer had given an undertaking that if the establishment fails ,then principal employer shall remit the dues to the workforce.
Now the establishment propreitor has been absconding and the liablity is on the PE (principal employer) to pay the dues.
Pls suggest, what is to be done.
21st April 2010 From India, Mumbai
Dear, Send a letter to EPF office pertaining to above and same submitt relevent documents which you are having. Take guidlines from your regional office regards, Basha
20th February 2013 From India, Bangalore
If younare talking about Section 7A of PF and MP Act, it comes in cas of an dispuit on applicability f this act or due of contribution. It is a serious matter. Immidiately communicate with the PF official and also to your managnt.
9th September 2013 From India
Under Section 7-A of the EPF Act, the APFC/RPFC is empowered to determine the EPF dues not paid or further payable by an Establishment. For this purpose, he initiates inquiry and act as judge. P.F. Department is represented by the E.O who shall submits his report / deposition before the Enquiry Officer on the basis of records seen/examined by him during the course of enquiry . He is liable to be be cross examined by the A.R. of the Establishment. The AR of the Establishment is allowed to file his submissions in support of his contentions. The APFC/RPFC/Enquiry Officer concerned shall record the proceedings of each hearing. He shall finally pass the speaking order giving reasons for accepting or declining the deposition of the E.O.or of the A.R. of the Establishment and shall determine the dues not paid or further payable on the basis of report of E.O.

The Establishment, if not satisfied with the 7-A order can file review u/s 7-B against such determination and in case of rejection of its review application can file appeal u/s 7I of the EPF Act before the EPF Appellate Tribunal at New Delhi within 60 days to challenge the 7-A & 7-B order on the basis of facts & law not considered judiciously by the Enquiry Officer.

S.C VERMA, Advocate
20th April 2014 From India, Chandigarh
i am a manpower contractor & i want to take EPF code from department. under which head i will apply for this. regards ashutosh
8th November 2016 From India, Calcutta
Is it any time limit for Inspection under 7A???
e.g. one unit starts in February 2014, and inspection not done till date i.e. March 2017
can industry exempt itself from inspection due to any specific time-limit
Sanjay M
23rd March 2017 From India, Ankleshwar
inspection is governed by CIAW now, and they get data from multiple sources, viz ESIC,EPFO, IncomeTax, Labour department, statics
if the industry is running smooth and discharging the payment liability on regular basis , then they don't shortlist such establishments for visit.
they keep close watch on defaulters and evaders, and visit there with firm data in hand.
23rd March 2017
Dear All,
My organisation has been issued a notice by PF Enforcement officer U/s 7a of EPF & MP act 1952 for Two types of irregularities.
1. Salary structure was changed from sept-2014. ( Till August-2014 we were paying contribution on Rs.6500/ and After Sept-2014 We are Paying Contribution on Rs.15000 )
2. There is a components of Sub contract expenses, Carriage outward charges and Labour Charges on which PF is liable. ( these three components was taken from balance sheet )
Can any one help me out preparing draft of this show cause letter reply. You can sent your draft to the below mention of E-Mail id.
Thanks & Regards,
17th June 2018 From India, Hyderabad
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