My organization has been issued a notice by the enforcement department under section 7A of the EPF & MP Act, 1952 for the submission of relevant records. Can anyone clarify what constitutes relevant records? This is urgent.
From India, Hyderabad
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14From India, Hyderabad
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Dear Friend,
Well, my friend, this is a serious issue. This is an inquiry wherein the authority will thoroughly review all the records and penalize if any discrepancies are found. The authority has all the powers similar to a civil court, such as the examination of evidence (oral, documentary).
You have to provide all the documents like Income Tax Returns, PF returns, wage registers, muster rolls, etc. So, it's better to start gathering the information on that basis.
Regards
From India, Vadodara
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Well, my friend, this is a serious issue. This is an inquiry wherein the authority will thoroughly review all the records and penalize if any discrepancies are found. The authority has all the powers similar to a civil court, such as the examination of evidence (oral, documentary).
You have to provide all the documents like Income Tax Returns, PF returns, wage registers, muster rolls, etc. So, it's better to start gathering the information on that basis.
Regards
From India, Vadodara
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Dear
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
From India, Bangalore
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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
From India, Bangalore
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I had faced an inquiry when I was working with a manufacturing company, where we had to meet the P.F. Officer and ask him for the details to be submitted. In our case, they asked for TDS and bill passing records concerning each labor contractor. They then verified the P.F. deducted and remitted to the Regional P.F. Commissioner. Accordingly, the P.F. Officer would issue an order for the amount to be deposited for recovery, damages, along with penalties and interest.
The best way to deal with P.F. authorities is to hire a legal consultant specializing in P.F. matters. They can help settle the issue with fewer liabilities to the company.
Vipul
From India, Thana
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The best way to deal with P.F. authorities is to hire a legal consultant specializing in P.F. matters. They can help settle the issue with fewer liabilities to the company.
Vipul
From India, Thana
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Dear Praveen,
There are various reasons for issuing a 7A, and generally, it is issued when any company fails to submit the monthly contribution cuts. In this case, without any physical inspection of the Enforcement officer, the authority from the office sent a summons for appearance in 7A.
In another case, after a surprise inspection of Enforcement officers and after verifying records (they can also seize the records), they issue a 7A for the statement of the company. If the company has failed to deposit the contributions, it is better to pay at least the employees' contribution to avoid any legal matters.
Thanks,
rrtpan
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There are various reasons for issuing a 7A, and generally, it is issued when any company fails to submit the monthly contribution cuts. In this case, without any physical inspection of the Enforcement officer, the authority from the office sent a summons for appearance in 7A.
In another case, after a surprise inspection of Enforcement officers and after verifying records (they can also seize the records), they issue a 7A for the statement of the company. If the company has failed to deposit the contributions, it is better to pay at least the employees' contribution to avoid any legal matters.
Thanks,
rrtpan
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Hi, I am the consultant from Mumbai. If your company is in Mumbai or Thane region, then I can assist you as a Consultant. If you want any help, please mail me. I will guide you in this matter. As others have suggested, please get ready with your other financial documents.
From India, Mumbai
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From India, Mumbai
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Dear,
You have to prepare a statement related to wages and contributions 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. April to March of that year:
a) PF Wage
b) Account No. 1
c) Account No. 2
d) Account No. 10
e) Account No. 21
f) Account No. 22
Then total of all heads.
Apart from that, prepare a detailed report for every financial year (month-wise) regarding:
1. Total number of employees
2. Exempted employees
3. Basic Salary
4. Salary ledger details for every month (Seek assistance from the accounting department)
5. Exempted Salary
6. Challan Amount
7. Date of deposit of challan
Find the difference that may arise between your salary register and the salary shown by the accounting department in the ledger. Try to identify the cause of the difference and rectify it. The same procedure should be followed for your contractors; they must provide you with their summary as per the details listed above.
I hope this information will assist you.
Regards,
Sameer
91-9416454413
From India, Delhi
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You have to prepare a statement related to wages and contributions 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. April to March of that year:
a) PF Wage
b) Account No. 1
c) Account No. 2
d) Account No. 10
e) Account No. 21
f) Account No. 22
Then total of all heads.
Apart from that, prepare a detailed report for every financial year (month-wise) regarding:
1. Total number of employees
2. Exempted employees
3. Basic Salary
4. Salary ledger details for every month (Seek assistance from the accounting department)
5. Exempted Salary
6. Challan Amount
7. Date of deposit of challan
Find the difference that may arise between your salary register and the salary shown by the accounting department in the ledger. Try to identify the cause of the difference and rectify it. The same procedure should be followed for your contractors; they must provide you with their summary as per the details listed above.
I hope this information will assist you.
Regards,
Sameer
91-9416454413
From India, Delhi
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Dear Sirs,
We (principal employer) have received an order under Sec 7A of the EPF & MP Act, 1952, for payment of dues. In our case, the establishment to which the work was allotted failed to remit the PF dues to the concerned authorities. Also, the principal employer had given an undertaking that if the establishment fails, then the principal employer shall remit the dues to the workforce. Now, the establishment proprietor has been absconding, and the liability is on the PE (principal employer) to pay the dues.
Please suggest what is to be done.
Regards,
Priyanka
From India, Mumbai
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We (principal employer) have received an order under Sec 7A of the EPF & MP Act, 1952, for payment of dues. In our case, the establishment to which the work was allotted failed to remit the PF dues to the concerned authorities. Also, the principal employer had given an undertaking that if the establishment fails, then the principal employer shall remit the dues to the workforce. Now, the establishment proprietor has been absconding, and the liability is on the PE (principal employer) to pay the dues.
Please suggest what is to be done.
Regards,
Priyanka
From India, Mumbai
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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
From India, Bangalore
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From India, Bangalore
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If you are talking about Section 7A of the PF and MP Act, it pertains to a dispute regarding the applicability of this act or contributions. It is a serious matter. Immediately communicate with the PF official and also inform your management.
From India
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From India
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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 an inquiry and acts as a judge. The P.F. Department is represented by the E.O who shall submit his report/deposition before the Enquiry Officer based on the records seen/examined by him during the inquiry. He is liable to be cross-examined by the A.R. of the Establishment. The A.R. 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 the A.R. of the Establishment and shall determine the dues not paid or further payable based on the report of the E.O.
The Establishment, if not satisfied with the 7-A order, can file a review u/s 7-B against such determination, and in case of rejection of its review application, can file an appeal u/s 7I of the EPF Act before the EPF Appellate Tribunal in New Delhi within 60 days to challenge the 7-A & 7-B orders based on facts & law not considered judiciously by the Enquiry Officer.
S.C VERMA, Advocate
From India, Chandigarh
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The Establishment, if not satisfied with the 7-A order, can file a review u/s 7-B against such determination, and in case of rejection of its review application, can file an appeal u/s 7I of the EPF Act before the EPF Appellate Tribunal in New Delhi within 60 days to challenge the 7-A & 7-B orders based on facts & law not considered judiciously by the Enquiry Officer.
S.C VERMA, Advocate
From India, Chandigarh
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i am a manpower contractor & i want to take EPF code from department. under which head i will apply for this. regards ashutosh
From India, Calcutta
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From India, Calcutta
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Is there any time limit for inspection under 7A? For example, if a unit started in February 2014, and inspection has not been completed as of March 2017, can the industry exempt itself from inspection due to any specific time limit?
Regards, Sanjay M
From India, Ankleshwar
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Regards, Sanjay M
From India, Ankleshwar
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Inspection is governed by CIAW now, and they gather data from multiple sources, namely ESIC, EPFO, Income Tax, Labour Department, and statistics. If the industry is running smoothly and meeting payment liabilities regularly, they do not shortlist such establishments for a visit. They closely monitor defaulters and evaders, visiting them with solid data in hand.
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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,
MRP-HYD’BAD
E-Mail:
From India, Hyderabad
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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,
MRP-HYD’BAD
E-Mail:
From India, Hyderabad
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EPF & Misc. Provision Act.1952 & the scheme.ppt
Employee Provident Fund and MP Act, 1952.pdf