There is nothing new as already it has been held by the Honble S C that any allowance paid uniform ally is subject to PF deduction. Otherwise also various High Courts have given different judgments on such issues and latest matter is still pending before the Hon,ble Sup.Court and the things will take the final shape after outcome of this case.
On the other hand, the employer is bound to deduct and deposit PF due as per statutory provisions only.The ceiling is still at Rs.6500 only. If an employee want to contribute on higher salary he can do so only with the consent of his employer but who is not bound to deposit his share on such increased amount.
Again, if the employer want to restrict the ceiling upto 6500, he can do so, if he is contributing on higher salary, he can reduce but only with the permission of RPFC .
However,CPFC has given a big relief to the employers by streamlining the working of officers concerened whereby enquries will be held only when found from documents on record, for a period of 7 years in normal cases, only after serving a notice, supplying basis for enquiry and only in respect of identifiable employees etc etc.
A.K.Chandok
RPFC (Retd.)
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A.K.Chandok
RPFC (Retd.)
<link no longer exists - removed>