Hi Friends,

We are deducting 12% as PF from employees and also contributing 12% as PF contribution(employers). Its a 100% owned foreign company.
Now foreign company directors saying that employers contribution can be restricted to 12% on Rs. 6500 for which they also got legal opinion from reputed consultancy.

They downloaded such information from http://epfindia.com/payments.htm :

CONTRIBUTION OF EMPLOYERS


Rates of Contribution:

a) The Employees' Provident Fund Scheme

In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:

Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.


Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.


Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.


Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.






Can employer contribution be restricted to Rs. 780(12% on 6500)?

Please explain with supportings. Its urgent.

Thanks in Advance.

A Private Limited company is having an authorised capital of 5cr now it wants to increase to 10cr
please suggest the procedure & related compliance to be followed.
wat compliance to be followed for authorised capital of 10cr.

Please let me know can HUF be partially parted out.i.e can son under HUF part him from HUF as member and give his shares to his mother on parting

Mr A & Mr B are partners of Firm M/s. XYZ & Co. now they want to admit Mr C and Retire Mr A so can they enter into agreement on stmap paper in name of advocate/chartered accountant ie stamp paper available s of advocate and not in name of partner

Hi my employeer used to pay us salary once in 15 days, now all of a suddern a new person joined my company and wants to change that pattern, He is stating that as per indian salary law we should not be paid every 15 days. could someone advice me is there is a LAW in india that we should get paid only once a month, or can we still get paid every 15 days. Please advice.

Good Evening Friends,

I have a query regarding the implication of EPF.

one of my company have around 20 employees and have CTC PM approx 60k per employee.

the company not yet registered under EPF.

As per EPF act the company come under the ambit of EPF.

As per the company management they are not in the position to fulfill all the compliance and liability of EPF..and want to deffer this liability till April 2012.

Please confirm how can i remove the implication.

Can i reduce the basic till 6500 Pm of every employee ?

ONE PERSON HAVING TWO DIN BY MISTAKE. HE WANTS TO SURRENDER ONE DIN AND RETAIN ONE DIN. HE IS DIRECTOR IN MORE THAN ONE COMAPANY AND HE WANTS TO RETAIN THE DIRECTORSHIP IN ALL THE COMPANIES IN WHICH HE IS DIRECTOR. WHAT SHOULD BE DONE NOW. PLEASE GUIDE ME.

Our co. has 5 employees at present, all drawing basic salary exceeding 6500. Co. is engaged in providing technical services of computer. Is EPF applicable to it?

my firm has availed loan under cgtsme cash credit for rs.40.00 lacs. as we have suffered a huge loss and now it is not in a position to repay the amount. what will be the consequences if we have not paid the loan amount.

Dear Sir/madam ,

if employee worked from apr to june and he resigned in july.What is the liability of the employer for the payment of profession tax which is to be paid for the half year ending october.
Is employer liable for full amount as per PT rules or proportion amount?

please reply