P.f Deduction Query

saswatabanerjee
The act provides a ceiling of Rs. 6500 for computation of PF
Nothing in ANY act requires you to pay more.
However nothing in the act prevents you from paying more.
Again, nothing in the act requires you to extend any additional payment to every employee.
In view of the above, you can very well have different rules for your 2 plants. The department will be on a wrong legal wicket if it tries to get you to pay PF higher than Rs. 780 per month. In fact, you are allowed to bring down the PF rate at your existing unit also.
There are cases that have been reported on this forum earlier. You can do a search for it.
rbi circular
Dear Raghuvir.
You need not use different rules for the companies belong to the same management. Therefore you can do the same as you follow for first unit as it will not pose any problem. You can contact your PF office and clarify with them whether the second unit can be covered under the same code or they will allot any sub codes.
Hope your doubts are clarified
N.Ragavendiran
raghuvirks
Thanks Mr.Ragavendran,
It is not the question of we do not want to use two rules. We would like to use the ceiling limiit of Rs6500 / for the new unit having new employees ,
My query is whether we can follow different rules for different units of the same company having same code. Will the pf dept object to this practice.
thanks
Raghuvir
Sudhakarant
Ceiling of Rs.6500/- is as per the stipulated norms. In one unit, you are not following the ceiling criteria. However, it is better to get a declaration from those people whose Basic+DA is above 6500/- wherein they should authorise the company to deduct 12% PF without applying the 6500/- ceiling.
hr8
Dear All,
Both unit is belongs to same company if it is in different place you need to get sub code in the near EPF office ceiling amount wants to be same in both branch.
Thanks
Anand
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