Dear Seniors, we have having our PF inspection and we have provided the inspector with all the data he had asked for but he is extending it every time now in his next visit he wants to see the ledger accounts of plant and machinery, vehicles etc. Is he entitled to see these ledgers. I know how inspections work but the P&M ledger is beyond my understanding. Kindly let me know if we need to keep these ready for him too. Kind Regards
From India, New Delhi
PF Inspector can ask 4 record from where u get number of workers u employed.
but l demanding for ledger of machinery and vehicles is no sense. You ask why he need this.

From India
Dear Member,

In my opinion, in case an employer has complied with the provisions of Employees' Provident Funds & Miscellaneous Provisions Act, 1952, Scheme and Rules/Regulations framed thereunder properly, then there is no harm in producing all records as may be required by the Inspecting Authority under above Act. The Inspecting authority has to satisfy himself before finalizing and submitting his report to the higher authorities and this is possible after he will verify the Accounts Books of the Unit. The inspecting authority cannot restrict his inspection to only a selected wages accounts heads of the accounts books because sometimes, the wages for the miscellaneous types of jobs viz.- payments to contractors, job work,maintenance and repair work, casual and loading and unloading etc. work amounts are booked in miscellaneous including in Plant & Machinery Accounts. The employers, in my opinion, maintain Accounts Books as per their own sweet discretion as well as convenience.

However, I will suggest you to read and examine provisions of Act specially Section 13 of the same which describes the powers and functions of the "Inspectors" appointed under above said Act.

In case of any doubt, I will also suggest if your unit may take up the matter with higher authorities of EPFO on above subject.

With regards;

From India, Noida
Hi Sohana,
The Inspector has every right to demand the records which he presumes to have relevance within the scope of his inspection.
Kindly go thru Sec.13 of the Act as well as on EPFO portal please refer the Manual for Inspector so that you will have better clarity in the matter.
Rajendra Zala

From India, Rajkot
Dear All Members,
i have lalso same problem regarding PF Enforcemnt officer asked about the Balance sheet , Trival Balance sheet, TDS certificate in form no.16-A at inspection time but i am confuse why some document require for inspection ? if require how he cross check with document ?
Upendrasinh R Zala

From India, Mumbai
You should ask the Inspector that why he requires Plant & Machinery Leger A/c's. He can ask for balance sheet and can ask for details of expenses Ledger if he has any doubt. Plant and Machineries Ledgers are part of Fixed Assets. Moreever, if his behaviour is rude then simply & politely ask him to give in writting whatever information he requires to finalise his inspection report.

From India, Bahadurgarh
Dear friends,

It's common that Inspectors of EPF, ESI, IT ask for all records. It's only with a view to ascertain circumstantial evidences of Income & Expenses which are accounted in different/various heads either purposely or incidentally camouflaged in order to minimise or evade contribution towards these funds. Many a time contract employees' payments are not classified under the Salary & Wages of the firm as a 'Direct Expenses' instead shown in different heads like Repair & Maintenance or under Capital Work-in-Progress or Plant & Machinery depending on which item these expenses are incurred wherein some element of Labour payments also involved which, in his view attracts PF/ESI contribution (though they might be covered by the contractor under his own employer code). In the event you are not providing these documents/details he is at his discretion estimate the labour component in each category and levy/ask/send demand notice to your firm to remit the estimated contribution in the absence of non-provision of relevant documents. Then it's your responsibility to fight with him showing whatever documents you feel you could show to him. Here only role of experienced 'Consultants' comes to play. These consultants bridge the gap and settle for some in between figs. and helps to close the issue. This is the modus-operandi of these Inspections. Now you decide what to show or not to show.

From India, Bangalore
Dear friends, Greetings to all
Under EPF Act contribution is based on Basic+ DA not exceeding Rs 6500/-where as under ESI it is gross salary up to Rs.15000/-.
Under ESI Act the contribution is levied on labour components where as under EPF there is no question of Labour Components for working out the dues.
I do not see any reasons why PF Inspector should ask for Expenses on P&M accounts.However ESI inspector can ask for it because he has to find out labour component to find out the dues accordingly.
Asking the employers to produce the ledger of Plant and Machinery by PF inspector is nothing but a modus-oprandi to harass the employer with a view to extract RISHWAT/BRIBE.
Let us join hands to make Bharashtachaar Mukt Bharat Hamara---Jai Bharat Party.
Thanks & Regards
RL Dhingra, Advocate ,
Labour Law Consultant, Delhi

From India, Delhi
The PF inspectors are demanding to produce balance sheet , P&L account and other documents to acees the liablility and omitted wages for PF contributions and evasion assessment. But as rightly said by advocate in his view that , PF inspector have nothing to do with those records. only attendance and wages register is enough to find the compliance.
From India
Dear all
as per inspection in our company, the demanding of pf inspector was following records:-
1. Salary / Wages Register
2. Name of workers
3. Register of Contractor
4. No. of Workers of each contractor
5. Form 5A (Annual return by Principle employer)
6. Filled Format of wages for prescribed format
7. Consolidated statement of Challan
8. Orginial copy of monthly challan
9. Form 6A detais
10. Balance Sheet
11. Trial Balance

From India, Dehra Dun

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