I have a doubt on EPF admin charge applicability to a firm which has not registered with EPF. My company have attained the employee strength on April 2014, but all employees of the company are above the EPF ceiling, and the contribution of employees engaged through a contractor was remitted by the contractor. So we have not registered with EPFO. During 2017-18, the company changed its policy and eliminated all contractors and absorbed the employees engaged through a contractor to its payroll and registered with EPFO. Now we are remitting EPF contributions regularly. After the inspection, the department demands minimum admin charges from April 2014 to March 2017. Whether we are liable to remit the same even we are not registered. Please advise.
From India, Kochi
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1From India, Kochi
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On the 1st instance, the minimum administrative charges are payable by the establishment that was liable to pay EPF in that specific period. However, if it is found that the contractor had no other contract other than this principal, then the department establishes that the contractor is part of the principal only. If you can provide Form 5/7/12/13/14 of the contractor in your support, showing that you have fully complied with the CLRA Act, then the department will initiate proceedings against the contractor; otherwise, the principal is liable.
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In any establishment, if more than 20 employees are engaged directly or indirectly, irrespective of whether they fall under PF deduction criteria or not, the establishment needs to be registered under the EPF Act of 1952. Thereafter, if there are no employees who fall under PF deduction, the establishment has to generate a challan and pay a minimum admin charge of Rs. 500 per month.
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Amendment in EPF Administration charges w.e.f. 01-04-2017.pdf
Registration for EPF-Procedures & documents.docx