What Should Employers Do When RPFC & CPFC Delay EDLI Exemption Certificates?

If an organization has an exemption in the EDLI scheme but lacks a certificate for the same, as per the requirement by RPFC, the organization has already submitted all required documents to RPFC & CPFC for obtaining the exemption certificate hard copy as per the provision of the EDLI Scheme, 1976 under Section 17(2A) of the EPF & MP Act, 1952. However, RPFC & CPFC did not issue the EDLI exemption certificate to the employer.

When the organization stopped the contribution (0.5%) in AC-21 (EDLI) without obtaining the exemption certificate and submitted the same contribution to LIC as a premium for the last five years against the EDLI exemption, but without receiving the EDLI exemption certificate from RPFC & CPFC, what steps should be taken by an employer in this condition?

Kindly suggest what we can do to obtain the same, and if it is non-compliance, then what penalty should be imposed on an employer in this case while the employer has already submitted all required documents and stopped the contribution in A/C 21 in the PF challan without obtaining the exemption certificate.

Please suggest and advise on the same ASAP.

You are advised to write a letter to the RPFC and CPFC immediately, giving the facts that you have made an application for the said exemption and accordingly you have stopped the contribution in A/c. 21 and A/c. No. 22 with EPFO and started paying to the LIC scheme for the last 5 years.

Please note that if you do not receive a refusal letter for your application submitted within the stipulated time/reasonable time, the application shall be deemed to have been granted.

You are required to pay inspection charges at the rate of 0.005% of the basic wages and dearness allowance, subject to a minimum of Re. 1 per month, and submit a monthly return to the RPFC.

I would like to bring to your kind notice that we have been regularly depositing the amount in PF challan on A/C 22 at the rate of 0.01% without any breaks initially. Could you please advise on which account of the PF challan we should pay the inspection charges of 0.005%?

EDLI Return Form 7 (IF) Submission

Additionally, we have not been submitting the EDLI return Form 7 (IF) for the last 5 years since we stopped contributions in A/C 21 and started depositing the premium to LIC for the EDLI scheme. Can I now submit the monthly EDLI return Form 7 (IF) to RPFC?

I would appreciate your suggestions and advice on these matters. I am eagerly waiting for your reply.

Thank you.

Dear seniors, can anyone suggest how we can apply for an exemption from EDLI? Currently, we are contributing towards Account 21. Could someone please provide a brief overview of the steps to obtain an exemption for EDLI?

Regards,
Poorna Sasidhar

Thank you for your reply. I have already prepared the January 2013 month challan dated 13/02/13. I have been regularly processing online PF challans since April 2012, and I have submitted the amounts in A/c 22=0.01% on wages month-wise starting from April 2012. As per your advice, I will try to enter inspection charges at the time of processing the February month challan.

However, as per recent information shared by a member of the Cite HR forum, the EPF office has sent an exemption order stating that the employer is liable to pay 0.01% or a minimum of Rs. 1 as inspection charges in A/c 22. Is this true? If it is, I have already been paying 0.01% in A/c-22 regularly every month. In this scenario, is it mandatory to pay the same in the challan or not? Please advise/clarify the same.

Thank you.

You are advised to approach your EPFO office and find a solution to the issue. The information I have provided is based on the law. The procedural details should be obtained locally.

Regards,