Pf and esi

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rajni sharma (Querist)
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05 September 2016 Dear Sir, this is Rajni.
Please clarify me on the below points:-
1.What is the applicability of PF and ESI on manufacturing sole proprietorship unit?
2.What is procedure to registration?
3.What is procedure to deposit of PF and ESI and procedure of filing of return?
4.What forms will be required in it?
Please let me know book for the same.

Thanks & Regards,
Rajni

rajni sharma

rajni sharma (Querist)
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07 September 2016 pls answer my query...

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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10 August 2024 Certainly! Here’s a detailed clarification on Provident Fund (PF) and Employees' State Insurance (ESI) for a manufacturing sole proprietorship unit:

### **1. Applicability of PF and ESI on Manufacturing Sole Proprietorship Unit**

#### **Provident Fund (PF):**
- **Applicability:**
- PF is applicable if the manufacturing unit has 20 or more employees.
- For a sole proprietorship, if it has 20 or more employees, PF is mandatory.
- If the unit employs fewer than 20 employees, PF is not mandatory but can be voluntarily applied.

#### **Employees' State Insurance (ESI):**
- **Applicability:**
- ESI is applicable if the unit has 10 or more employees (in certain states, this number may be 20).
- Employees earning up to ₹21,000 per month (₹25,000 for persons with disabilities) are covered.
- For a sole proprietorship, ESI is mandatory if the number of employees and wage limits are met.

### **2. Procedure for Registration**

#### **Provident Fund (PF):**
- **Registration Procedure:**
1. **Apply for Registration:**
- Submit an application to the Regional Provident Fund Commissioner (RPFC) under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
- Use Form 9 for the registration of establishments.
2. **Documentation Required:**
- Proof of establishment (e.g., certificate of incorporation).
- Details of employees and their wages.
- Address proof of the business.

#### **Employees' State Insurance (ESI):**
- **Registration Procedure:**
1. **Apply for Registration:**
- Submit an application to the Employees' State Insurance Corporation (ESIC).
- Use Form 1 for registration.
2. **Documentation Required:**
- Proof of establishment (e.g., certificate of incorporation).
- Details of employees and their wages.
- Address proof of the business.

### **3. Procedure for Deposit of PF and ESI and Filing of Returns**

#### **Provident Fund (PF):**
- **Deposit Procedure:**
1. **Monthly Contributions:**
- Deposit the PF contributions to the EPFO account by the 15th of the following month.
- Contributions can be deposited online through the EPFO portal.
2. **Form 5 (for new employees) and Form 10 (for employees leaving or transferred) need to be submitted.

- **Filing of Returns:**
1. **Monthly Returns:**
- Submit Form 12A (summary of PF contributions).
- Forms 5 and 10 (if applicable) for new joinees and those who left.
2. **Annual Returns:**
- Submit Form 3A (annual statement for each employee).
- Submit Form 6A (annual return of contributions).

#### **Employees' State Insurance (ESI):**
- **Deposit Procedure:**
1. **Monthly Contributions:**
- Deposit ESI contributions to the ESIC account by the 15th of the following month.
- Contributions can be deposited online through the ESIC portal.
2. **Form 5 (for new employees) and Form 10 (for employees leaving) need to be submitted.

- **Filing of Returns:**
1. **Monthly Return:**
- Submit Form 6 (monthly return of ESI contributions).
2. **Annual Return:**
- Submit Form 7A (summary of annual contributions).

### **4. Required Forms**

#### **Provident Fund (PF):**
- **Monthly Forms:**
- **Form 5:** For new employees.
- **Form 10:** For employees who leave or transfer.
- **Form 12A:** Summary of contributions.

- **Annual Forms:**
- **Form 3A:** Annual statement for each employee.
- **Form 6A:** Annual return of contributions.

#### **Employees' State Insurance (ESI):**
- **Monthly Forms:**
- **Form 6:** Monthly return of contributions.

- **Annual Forms:**
- **Form 7A:** Annual summary of contributions.

### **Books for Reference**

1. **"Employees' Provident Funds & Miscellaneous Provisions Act, 1952 – A Comprehensive Commentary"** by Taxmann.
2. **"Employees’ State Insurance Act, 1948: With Rules & Regulations"** by Taxmann.
3. **"Practical Guide to PF, ESI & Labour Laws"** by the Institute of Chartered Accountants of India (ICAI).

These books offer detailed insights into compliance, practical issues, and are updated with the latest amendments and regulations.

### **Summary**

- **PF and ESI** are applicable based on the number of employees and their wages.
- **Registration** is done by submitting the necessary forms to EPFO and ESIC.
- **Deposits and Returns** are to be done monthly and annually using specific forms.
- **Required Forms** are for monthly and annual returns, including Form 5, 10, 12A for PF, and Form 6, 7A for ESI.

For further details and up-to-date procedures, refer to the EPFO and ESIC official websites or consult a labor law expert.

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