Provident Fund - Doc Download [thread 382107]

Dear seniors,

I am working in an ad agency with a staff of 45 employees. It's a 5-year-old agency in Bangalore, but it is not registered under the PF account. Please advise me on how to register under the PF account and if there are any penalties for delays in filing returns or challans.

Additionally, could you please provide information on the documents required for registration?

Regards,
Ritu

Dear Ritu,

Please go through the [EPFO](http://epfindia.com) link and adhere to the same. You can download the forms, fill them out, and approach your district PF Commissioner's Office to get the registration done. When approaching the office, please mention that you are doing so on a voluntary basis and not in response to any notice.

Our members can guide you through the procedures up to a certain level, but in practice, it may be a bit different. Take the list of your employees for whom you plan to deduct the PF along with the form. The PF Commissioner's office will assign you an Establishment Code, and from that point on, you can start deducting the PF.

Dear Ritu,

Yes, any establishment having more than 20 workers has to be covered under PF/ESI (now they have proposed to 10 employees). You have to register for both ESI and PF. Attaching the list of documents needed to obtain ESI and PF code for your organization. Penalties will be there, but they will be recovered after you file your returns. (Penalties/damages will be collected for both PF & ESI). Your company has been running for 5 years; are you covered under the Shops & Commercial Act? It would be better to engage a consultant who can assist in obtaining all the necessary licenses to proceed further.

Thanks and regards

Dear Sir,

I am working with a Mumbai-based pharmaceutical company, and I would like to inquire about my PF money deposited into my account MH/39783/149.

Thanks and regards,
Mohd Nasir

Hi,

This is really useful for me. In my rural BPO, 60 employees are working with a Net Salary of Rs. 4000. We are going to calculate PF for them.

Kindly tell me your suggestions.

Dear Thangaraj,

You have to deduct 12% from the basic salary (Basic + DA) of employees. Could you please clarify whether Rs. 4000 represents the net salary or the gross salary? The net salary is the amount remaining after deductions such as ESI, PF, LOP, PT, etc.

If it is the gross salary, are you ensuring compliance with the minimum wages for the employees as per the Shops and Establishments Act?

Thank you.

Can anyone tell me what a new joiner has to do regarding the deduction of PF? My accounts department is saying you don't have to fill up any form.

Dear Sir,

As I'm working as an Admin/Accounts Executive in a recognized organization in Visakhapatnam, we are planning to implement PF for our employees, and we have a staff of 36 employees. However, I am unfamiliar with the process for PF implementation. Therefore, kindly guide me on how to complete the process.

Thanks & Regards, Tirumala Rao

Dear Ritu,

Please go through my earlier positions; you will find all relevant information for the same.

Sumit

First of all, YES, the establishment will be liable for a penalty under EPF. If you are wondering why? It is because it is mandatory for the establishment to be registered under the EPF Act when it has a staff of more than 20 employees.

EPF challan cannot be submitted online. (for [Login to view])

Now the solution: Register under EPF as soon as possible.

This part must not be followed: Show that the establishment has more than 20 employees for the last 2 or 3 months before registration. This way, your liability for a penalty (Section 14B & 7Q) will be reduced.

Now the hard part (still not recommending it): you have to prepare balance sheets and other documents to show the above. (if the inspection is being carried out by EPF officials)

Important: The penalty would be 100% (i.e., the amount deposited by the employer through challans for the last periods), and the interest would be equal to the amount announced by the EPF office yearly (say 9.5% for the last year).

Stay Cool

Atom

Dear Shenbagarajan,

Thank you very much. Actually, we are paying a net salary of Rs. 4000 without considering any allowances. My doubt is, if we take Rs. 3000 as the basic salary, then how should we split the remaining Rs. 1000 as allowances? Kindly suggest to me what allowances can be taken into account. Our BPO is in a rural area.

With Regards,
Thangaraj.P

Dear Thangaraj,

Which state do you belong to?

Even though it is rural, the minimum wage is applicable for all. If you are giving more than the minimum wage, you can go ahead with the following heads:

Basic + DA - 3000
HRA - 600
TA - 200
Medical allowance - 200

Else:

Basic + DA (As per minimum wages)
HRA (20 - 40% of basic)
TA (Transport allowance of Rs. 800 - maximum)

Dear Mr. Shenbagarajan,

Thank you so much for your kind information. I just used your information in the salary structure of my employees. I belong to Tamil Nadu.

Regards,
Thangaraj.P