Understanding PF Contributions: Are They Applicable to Labour and Development Charges?

Please let me know, whether P.F. contributions are payable on Labour/Development charges/expenses? Whether the P.F. authorities can impose 25% as contribution on the Labour and Development charges which are reflected in the Balance Sheet of an organization?

Hi,

As far as the PF Charges are concerned, the following is applicable:

- Employee Contribution is 12% (8.33% - Pension Fund & 3.67% - Provident Fund)
- Employers Contribution is 12% + 0.5 EDLI + 1.10 PF Admin. charges + 0.10 EDLI Admin Charges.

Dear Ramesh,

Hope you're doing well. Please elaborate on your question a little bit. I guess the PF department inspects your accounts books? Is that so?

Best regards,
Umesh Chaudhary
welcomeumesh@yahoo.com

Hi everyone!

I'm in the 2nd year of Engineering at RV College of Engineering. I'm currently doing an internship in this company, and the boss has requested me to find a book or website that covers the rules and regulations of the HR Department. I have very limited knowledge about HR, so I would greatly appreciate it if any of you could help me out!

Thank you!

Dear,

Please let us know your question in detail. Why is a 25% labor charge imposed by the PF authority? On what basis do they impose fines for not depositing? Have you also deposited 0.5 EDLI, 1.10 PF Admin. charges, and 0.10 EDLI Admin Charges along with the PF amount?

Best Regards,
Sajid Ansari - Delhi

Hi,

I really did not understand the question. Could anyone explain the question in detail to me?

Dear Ramesh,

If you are covered under P.F. and the amount you have spent on Labour/Development charges/expenses related to your business at your workplace, then PF is applicable at 25.61%. However, if the expenses are incurred in some other place where you do not have direct control, then the PF is not applicable.

Regards,
Ravi Sauson

Everything is right that Mr. Sharma explained above, except for the EDLF Admin charges. As per my knowledge, that must be 0.01% not 0.10%. Anyone can correct me if I am wrong.

Regards,
Gopal

Hi Ramesh,

I think you are asking about the total contribution that has to be deposited in the PF Account. The calculation is as follows:
- 12% of Basic + DA - Employee's Contribution
- 12% + 1.1% + .5% + .01, i.e., 13.61% - Employer Contribution.

Regards,
Sanjeev

[QUOTE=ramesh.surabattula;766340]Please let me know,

Whether P.F. Contributions are payable on Labor/Development charges/expenses? Whether the P.F. authorities can impose a 25% contribution on the Labor and Development charges reflected in the Balance Sheet of an organization?

It seems after the inspection of records and going through the balance sheet, you must have shown some expenses on labor and development charges to increase the expenses, which PF Authorities could not digest... they can if not satisfied.

H Singh

Dear friends,

What forms must an employer receive from employees and submit to the PF office on behalf of the company?

Goutam Tapedar