Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Applicability of PF

Save Share

This query is : Resolved

Venkat (Querist)

28 May 2010 COnsider two firms A and B.

A has 15 employees and 2 securities from security service. A is a manufacturing electronic products. Has 2 partners X and Y. Has Excise, VAT , service tax, SME certificates

B has 10 employees. Has three partners X Y and Z. ( X and Y are common to both the firms ). B provides software and installation commissioning services. Has VAT, SME (service) certificates.

Both are in the same building and B pays rent to A. B has sold software to A in addition to billing on other customers.

Can the head count of A and B combined to arrive at the PF coverage limit of 20 employees ?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

28 May 2010 Eventhough the 2 companies are working under the same building if employees are not interchanged often to do the work and strictly they are doing thier company job only then PF will not come into picture. If in the both the firms there are same partners then only pf will be applicable. Since B is having another partner Z it becomes a seperate entity for the purpose of PF Act.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now