PF Inspector's Authority to Request Balance Sheet
Whether a PF Inspector can ask for the balance sheet of the company when conducting an inspection of the contractor at the office/factory of the Principal Employer. The contractor has employed only 6 persons at the principal employer's site, although he has more than 50 workers on his payroll at different locations and diligently contributes to PF. He has maintained the muster roll, register of wages, PF Challan with ECR, and also RTGS letters showing the deposit of salaries in their bank accounts. Is asking for the balance sheet and calculating PF contributions based on 30% of wages paid by the contractor not an overstepping of boundaries? Under which provision of the PF Act or rules is demanding the production of the balance sheet permissible? Kindly guide.
From India, Pune
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26Whether a PF Inspector can ask for the balance sheet of the company when conducting an inspection of the contractor at the office/factory of the Principal Employer. The contractor has employed only 6 persons at the principal employer's site, although he has more than 50 workers on his payroll at different locations and diligently contributes to PF. He has maintained the muster roll, register of wages, PF Challan with ECR, and also RTGS letters showing the deposit of salaries in their bank accounts. Is asking for the balance sheet and calculating PF contributions based on 30% of wages paid by the contractor not an overstepping of boundaries? Under which provision of the PF Act or rules is demanding the production of the balance sheet permissible? Kindly guide.
From India, Pune
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Dear friend, I prefer to reserve my comments on the circumstances leading to the demand of the Inspector for production of the balance sheet as narrated in your post. Section 13(2) of the EPF & MP Act, 1952 empowers the inspector to demand any documents relating to the employment of persons or the payment of wages in the establishment.
From India, Salem
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From India, Salem
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PF Amount Balance Check.xls