Pf Deduction From Employee (12%)

Dear Senior,
I have little confusion about pf deduction from employee because in our organisation one of the employee's basic has 9600 n not deducted his pf from employee.
1.Pls clarify me why not deducted PF from his salary?
2.I heard somewhere about pf which employees salary exceeds 6400 then will not deduct his pf...is it right?
3. But in 2nd question I have little confusion 6400 is taken basic or pf amt? kindly clarify......
Regards,
VIDYA

Dear Member,
The wage ceiling is fixed under this Act is Rs.6500/- as basic wages. If the basic wages exceeds the limit at the time of entry the provisions of the Act, does not apply and the employees are exempted to be a subscriber of this fund. However, if any employee who draws salary or wages more than Rs.6500/- as basic and they opt EPF scheme and the employer also accepts such offer and agrees to extend the benefit, then all the employees drawing more than fixed (Rs.6500/-) basic wage will be covered under this scheme otherwise it is not mandatory. In some organization, all the employees are covered and the EPF scheme, contribution for this scheme from the Employee as well as employer is restricted upto Rs. 6500/- as basic wages.

The deduction of pf is on the salary of up to 6500. but if the employee have a salary greater than this limit than the calculation is on the same limit.the employer contribution is
8.33% or maximum 541 towards to pension fund.
3.67% towards provident fund
the deduction of pf is on basic salary of the employee .

Dear Friends
According to the PF Act the Salary ceiling to be entitled for PF deduction is 6500 RS Basic PM. Then why it is so that PF is deducted even for those whose basic is more than 6500 pm
rgrds,
vidya