Dear Naveen
Please do not give the same as Conveyance Allowance. Please make it as Reimbursement of Conveyance charges to all the employee. Please take a undertaking from the employees and obtain the signature on the undertaking that they have spent on the Conveyance and pay them on Voucher, so that the PF, ESI and Tax will get exempted.
From India, Kumbakonam
1166Please do not give the same as Conveyance Allowance. Please make it as Reimbursement of Conveyance charges to all the employee. Please take a undertaking from the employees and obtain the signature on the undertaking that they have spent on the Conveyance and pay them on Voucher, so that the PF, ESI and Tax will get exempted.
From India, Kumbakonam
It is still not comprehendible as to how "travelling allowance" can be part of wages even if paid as part of salary every month since the definition of "wages" under Sec.2(22) itself expressly excludes it without qualifying it. However since ESI itself laid down certain guidelines in it's circular, it is better to go by it's circular to compute ESI contributions with regard to travelling or conveyance allowance. Thanks Prasoon.
So far as P.F contribution on conveyane allowance is concerned, it is better to go by Apex Court's decision in appeal in Surya Roshni's case as Trilok Dhir pointed out.
B.Saikumar
HR & Labour Law Advsior
Mumbai.
From India, Mumbai
So far as P.F contribution on conveyane allowance is concerned, it is better to go by Apex Court's decision in appeal in Surya Roshni's case as Trilok Dhir pointed out.
B.Saikumar
HR & Labour Law Advsior
Mumbai.
From India, Mumbai
The current view taken by ESIC is that if the conveyance allowance is paid in fulfillment of contract of employment or wage agreement whether express or implied it would attract the scope of 'wages' . consequently contributions are are payable on such amount. This is notwithstanding an explicit proviso to the contrary under sec 2(22) of the ESI Act. Incidentally, as few others have referred earlier , Hon high court of Madras has has held that the conveyance allowance are not wages under sec2(220 of the act and no contributions are payable on such amount. As I understand, notwithstanding the High court decision most employers in Tamil Nadu state are paying contributions on conveyance allowances for various obvious reasons . well, if an employer really wants to avoid paying contributions and yet be legal about it, there are ways
From India, Hyderabad
From India, Hyderabad
PF-12% & ESI-1.75% Employee Must be deducted as per Act and rules but conveyance need not to be deducted, if it exceeds above the limit then its deducted
And the income Tax and the Professional tax has to be deducted as per the ACT
From India, Chandigarh
And the income Tax and the Professional tax has to be deducted as per the ACT
From India, Chandigarh
Dear Sir, During the recent past, different views and decisions are coming up from various sources pertaining to splitting up of wages for the purpose of compliances under various Acts and Schemes.
Hon'ble Madras High Court in the matter of ESI V. Cosmopolitan Club, Chennai has held that Conveyance allowance does not form part of wages to attract ESI contributions.
Hon'ble MP High Court and Hon'ble Punjab & Haryana HC and other court have given their verdicts on splitting up up of wages for EPF deductions .The EPFO has filed SLP in Hon'ble Supreme Court of India against the verdict of Hon"ble M P High Court which is pending and the EPFO HAS HELD IN ABEYANCE, its circular dated 23-05-2011 keeping in view of its SLP filed against decision of Punjab & Haryana HC.
In such a situation, we must await the final verdict of Honble Apex Court.
A K CHANDOK
RPFC (Retd.)
<link no longer exists - removed>
09988021715
From India, Chandigarh
Hon'ble Madras High Court in the matter of ESI V. Cosmopolitan Club, Chennai has held that Conveyance allowance does not form part of wages to attract ESI contributions.
Hon'ble MP High Court and Hon'ble Punjab & Haryana HC and other court have given their verdicts on splitting up up of wages for EPF deductions .The EPFO has filed SLP in Hon'ble Supreme Court of India against the verdict of Hon"ble M P High Court which is pending and the EPFO HAS HELD IN ABEYANCE, its circular dated 23-05-2011 keeping in view of its SLP filed against decision of Punjab & Haryana HC.
In such a situation, we must await the final verdict of Honble Apex Court.
A K CHANDOK
RPFC (Retd.)
<link no longer exists - removed>
09988021715
From India, Chandigarh
Update on Surya Roshni Ltd vs EPF case.
The Supreme Court stays M.P High Court judgement in Surya Roshni Ltd vs EPF. case, which held that when special allowance, conveyance allow. and other allowances are paid universally to all employees, they would be treated as part of basic wages for PF contributions.
The court has stayed the judgement of M.P high court while hearing the petition filed by Surya Roshni Ltd.
regards,
Kamal
From India, Pune
The Supreme Court stays M.P High Court judgement in Surya Roshni Ltd vs EPF. case, which held that when special allowance, conveyance allow. and other allowances are paid universally to all employees, they would be treated as part of basic wages for PF contributions.
The court has stayed the judgement of M.P high court while hearing the petition filed by Surya Roshni Ltd.
regards,
Kamal
From India, Pune
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ESI-Not-applica ble-on-Conveyan ce-Allowance.do c
Revision in conveyance allowance in Maharashtra from 1.10.2013.pdf