Facing a Surprise PF Payment Demand? How to Contest and Get a Detailed Breakdown

We are a software company from Mumbai. Our employee strength varies from 15 to 20 depending on the workload. Recently, we received a Rs. 65K payment demand from the PF office. The notice gives a consolidated figure with no breakup. This happened after a PF officer did his inspection of our records. We are very particular about timely payments and would like to contest this claim. If anyone could guide us on what the next step is, it would be appreciated. No, we don't want to "settle" this the usual way it happens. What would be the next step? Also, how can we get a breakup of this consolidated settlement? Help appreciated.

If at any point in time, you had 20 employees in your organization, you had to register for PF. Once registered, even if the employee count decreases, it has to be continued.

I also suggest that you provide more clarity on the issue. For example, if the PF office has asked for some money, they must have mentioned the reason or the category under which it falls.

Thank you.

Regards.

With reference to your query, please mention under what grounds the PF authorities served notice to your organization. If you want more details, please feel free to talk with me.

Regards,
P.V. Rama Rao
[Phone Number Removed For Privacy Reasons].

We do have a PF number, and we are very particular about payment. We would like to know what the ways are to appeal against this demand notice.

Attached herewith is a part of the PF notice. Could anyone explain what is meant by EE ER A/C I A/C II and how can we obtain a breakup of these amounts?

Explanation:

- EE: Refers to the employee's contribution.
- ER: Refers to the employer's contribution.
- A/C No. 1: Contribution towards PF Fund.
- A/C No. 2: Contribution towards PF admin charges.
- A/C No. 10: Contribution towards Pension Fund.
- A/C No. 21: Contribution towards EDLI.
- A/C No. 22: Contribution towards EDLI Admin.

I would suggest you check your records and tally them with those of the PF office. There may be some contributions you have missed or some miscalculations by the PF Office. The matter is not that serious. Scrutinize the data, and hopefully, it will be resolved.

Key Questions for PF Demand Resolution

First question: Did you have more than 19 employees shown in your muster rolls at any time?

Second question: If you did, were any of them receiving a salary (basic + DA) less than ₹6,500?

The response to everything hinges on these two answers.