Hello members,
My company has paid Rs. 1 lakh as advances to an employee. His basic salary is Rs. 12,000. Now my question is, is it required to deposit PF (whether employee contribution or employer contribution) to the government at the time of payment of advances, or should we comply with PF provisions each month for which the advance has been given? I am asking this because we have received a notice from the government to deposit PF on the advance paid to the employee. Please give your suggestions.
From India, Jaipur
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My company has paid Rs. 1 lakh as advances to an employee. His basic salary is Rs. 12,000. Now my question is, is it required to deposit PF (whether employee contribution or employer contribution) to the government at the time of payment of advances, or should we comply with PF provisions each month for which the advance has been given? I am asking this because we have received a notice from the government to deposit PF on the advance paid to the employee. Please give your suggestions.
From India, Jaipur
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Salary advance is an advance recoverable from the employee either in one installment or monthly installments by deduction from salary. The advance amount is not a salary earned by working but only a loan from the employer. No PF shall be deducted from this amount. Just give a reply to the PF that the amount represents an advance paid to... and is recoverable from his salary. If you pay PF for the amount advanced, will the EPFO refund it every month when you collect it from the employee? No. If you have booked this amount as a salary advance, I don't think that the PF Enforcement Officer will take it as salary paid. If mistaken, you can just say that the amount represents an advance recoverable from the employee and not salary paid.
From India, Kannur
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4483From India, Kannur
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I do not think you have to pay PF contribution for the amount advanced by you to your employee. Can you exhibit the letter received from EPFO, in this forum, so that suitable reply could be framed.
From India, Aizawl
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From India, Aizawl
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