EPFO Launches E-returns for Exempted Establishments
To reduce the workload of exempted establishments and ensure better monitoring of provident fund investments, the EPFO has launched the facility for filing electronic returns.
Launching the software here, Labour Minister Oscar Fernandes said the facility would benefit over 3,000 exempted establishments that are now required to file their monthly and annual paper returns.
He said it was the Employees Provident Fund Organisation (EPFO) that had been entrusted with the responsibility to ensure that employees were paid provident fund and pension on time.
Labour Secretary Gauri Kumar called for close monitoring of exempted establishments as they managed the provident funds of over 56 lakh members, and the fund size of these establishments had exceeded Rs 1,59,000 crore.
The EPFO said it was also working on software to take care of transfers of employees from unexempted establishments to exempted ones and vice-versa.
K.K. Jalan, Central Provident Fund Commissioner, said EPFO was committed to strengthening e-governance and providing better services to its stakeholders.
According to the EPFO, the electronic return has six parts — establishment details, trust details, employment details, contribution details, investment details, and annual information.
The establishment details and trust details will be for one-time entry, and editing can be done later if required. Employment details and contribution details will be entered each month by all establishments complying as exempted under the EPF scheme. Investment details will have to be entered by the parent trust every month.
The participating units and branches can view the data. This part will have the details of receipts and payments, including investments by the trust.
Annual information will be made by the parent trust only at the end of each financial year, with details such as audit of accounts, interest declaration, maturity/interest in default, etc.
Business Line, New Delhi, 14-01-2014
From India, Malappuram
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1446To reduce the workload of exempted establishments and ensure better monitoring of provident fund investments, the EPFO has launched the facility for filing electronic returns.
Launching the software here, Labour Minister Oscar Fernandes said the facility would benefit over 3,000 exempted establishments that are now required to file their monthly and annual paper returns.
He said it was the Employees Provident Fund Organisation (EPFO) that had been entrusted with the responsibility to ensure that employees were paid provident fund and pension on time.
Labour Secretary Gauri Kumar called for close monitoring of exempted establishments as they managed the provident funds of over 56 lakh members, and the fund size of these establishments had exceeded Rs 1,59,000 crore.
The EPFO said it was also working on software to take care of transfers of employees from unexempted establishments to exempted ones and vice-versa.
K.K. Jalan, Central Provident Fund Commissioner, said EPFO was committed to strengthening e-governance and providing better services to its stakeholders.
According to the EPFO, the electronic return has six parts — establishment details, trust details, employment details, contribution details, investment details, and annual information.
The establishment details and trust details will be for one-time entry, and editing can be done later if required. Employment details and contribution details will be entered each month by all establishments complying as exempted under the EPF scheme. Investment details will have to be entered by the parent trust every month.
The participating units and branches can view the data. This part will have the details of receipts and payments, including investments by the trust.
Annual information will be made by the parent trust only at the end of each financial year, with details such as audit of accounts, interest declaration, maturity/interest in default, etc.
Business Line, New Delhi, 14-01-2014
From India, Malappuram
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Nice update, and thanks. If you could also explain briefly what the "exempted establishments" under the Act are, this thread will become more useful for all, especially the freshers.
Warm regards.
From India, Delhi
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Warm regards.
From India, Delhi
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Understanding Exempted Establishments
I am sure you are aware of what an "exempted establishment" is and the relevant chapter. You mentioned your intention of making this thread more useful, especially for freshers. Therefore, I would like to contribute to this topic and revise my understanding of it.
"Exempted establishment," as defined in section 2(fff), is an establishment to which an exemption is granted from the operation of all or any of the provisions of any scheme.
Under section 17 of the Act, exemption is granted by the Appropriate Government from any of the three schemes.
Exemption is granted under section 17(1)(a) to any establishment to which the EPF & MP Act applies if:
- The rules of the PF scheme with respect to the rates of contribution are not less favorable.
- Employees are enjoying other PF benefits as well.
Types of Exemptions
There are the following types of exemptions:
- Exemption of establishment as a whole - Sec 17 (1) (a)
- Exemption to a class of establishment or class of employees - Sec 17 (2)
- Exemption of individual employees - Para 27
- Relaxation - Para 79
- EDLI Exemption - Sec 17 (2A)
The employer of an "exempted establishment" is required to form a Board of Trustees (BOT) who maintain detailed accounts, submit returns to RPFC, and invest PF money as per Central Government directions. The BOT is duty-bound to transfer accounts of employees.
Purpose of Granting Exemption
The objectives/purposes of granting this exemption are:
- To allow employers with a good track record to provide flexibility for extending better benefits to employees.
- To overcome service-related issues.
- To aid and supplement the efforts of the Government to extend the Social Security Cover to the maximum number of people.
Regards,
From India, Mumbai
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I am sure you are aware of what an "exempted establishment" is and the relevant chapter. You mentioned your intention of making this thread more useful, especially for freshers. Therefore, I would like to contribute to this topic and revise my understanding of it.
"Exempted establishment," as defined in section 2(fff), is an establishment to which an exemption is granted from the operation of all or any of the provisions of any scheme.
Under section 17 of the Act, exemption is granted by the Appropriate Government from any of the three schemes.
Exemption is granted under section 17(1)(a) to any establishment to which the EPF & MP Act applies if:
- The rules of the PF scheme with respect to the rates of contribution are not less favorable.
- Employees are enjoying other PF benefits as well.
Types of Exemptions
There are the following types of exemptions:
- Exemption of establishment as a whole - Sec 17 (1) (a)
- Exemption to a class of establishment or class of employees - Sec 17 (2)
- Exemption of individual employees - Para 27
- Relaxation - Para 79
- EDLI Exemption - Sec 17 (2A)
The employer of an "exempted establishment" is required to form a Board of Trustees (BOT) who maintain detailed accounts, submit returns to RPFC, and invest PF money as per Central Government directions. The BOT is duty-bound to transfer accounts of employees.
Purpose of Granting Exemption
The objectives/purposes of granting this exemption are:
- To allow employers with a good track record to provide flexibility for extending better benefits to employees.
- To overcome service-related issues.
- To aid and supplement the efforts of the Government to extend the Social Security Cover to the maximum number of people.
Regards,
From India, Mumbai
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Thank you for your authoritative and definitive input, complete with relevant sections of the Act. Your write-up will be useful to everyone, especially those MBA students who seek information on "What do you understand by the term 'exempted establishment' under the EPF & MP Act."
As you have correctly observed, I am aware of such an Exempted Establishment, not only academically, but especially after having worked in one for several years. However, I wish to encourage members and thread-posters to add more information and make their threads wholesome and useful to all.
Please continue to enlighten us with your informative posts.
Warm regards.
From India, Delhi
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As you have correctly observed, I am aware of such an Exempted Establishment, not only academically, but especially after having worked in one for several years. However, I wish to encourage members and thread-posters to add more information and make their threads wholesome and useful to all.
Please continue to enlighten us with your informative posts.
Warm regards.
From India, Delhi
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Online Filing And Specified Timeline For Filing Of Returns By Exempted Establishments. pdf