With salary of Rs. 14,500/-, non-deduction of PF is in violation of PF Act 1952, and sooner or later the non-compliance will come to light during PF inspection or otherwise, then the company will not only pay the contribution but interest and penalty along with facing prosecution proceedings. Perhaps the company may not be showing the expenses under salary head and hoping to evade the statutory liability being confident of not getting caught, but it is this overconfidence that will prove to be their undoing. It does not appear to be an isolated instance and it may be a regular practice they are doing till they get caught.