Dear all
There is a confusion on payment of PF administration charges. I very well know that it is to be paid @ 1.1%. But on what wages. In our organisation we deduct PF @ 12% on Basic and DA (say for example it is more than 6500/-), but the management contribution is on Rs.6500/- only.
Our contention is that we are bound to pay administration charges on Rs.6500/- only for which we have rules specified in PF Act. But the PF officials
denied and are asking administrative charges on full wages on which PF is deducted. We tried to get the rule under which it is done. They have not given any rules but however insists that it should be paid on full wages.
Can some of you tell me whether our contention is right or PF authorities contention is correct. I will be much grateful if you can mention the rule specified in the PF act if the contention of PF authorities are correct and also
mention any court decisions for reference.
Please help me out as this has become a burning issue and my client is suffering.
Expecting to hear from you soon
Regards
Auditor Raman
There is a confusion on payment of PF administration charges. I very well know that it is to be paid @ 1.1%. But on what wages. In our organisation we deduct PF @ 12% on Basic and DA (say for example it is more than 6500/-), but the management contribution is on Rs.6500/- only.
Our contention is that we are bound to pay administration charges on Rs.6500/- only for which we have rules specified in PF Act. But the PF officials
denied and are asking administrative charges on full wages on which PF is deducted. We tried to get the rule under which it is done. They have not given any rules but however insists that it should be paid on full wages.
Can some of you tell me whether our contention is right or PF authorities contention is correct. I will be much grateful if you can mention the rule specified in the PF act if the contention of PF authorities are correct and also
mention any court decisions for reference.
Please help me out as this has become a burning issue and my client is suffering.
Expecting to hear from you soon
Regards
Auditor Raman