Provident fund
This query is : Resolved
07 March 2013
Can a company deduct PF on the basic wages of employees having basic wages more than Rs 6500 pm. My co. is deducting PF of all the employees. Employees do not have any objection as it is beneficial for them but is it a loss for the co. or not. Please tell me whether the co. should do it or not.Is it a offence or loss fo the company????
07 March 2013
Though it is not mandatory but both Employer & employees can contribute towards provident fund if they wish to do so. It is not an offence.
Yes, it is additional cost for the company as you contribute 12% of employee’s salary.
Please note if basic salary of an employee was less than 6500 and he was contributing towards PF earlier, you can not terminate his membership even his basic salary has exceeded 6500 at any later stage. Of course, both employer & employee contribution can be restricted on 6500 in such cases.
Yes, it is additional cost for the company as you contribute 12% of employee’s salary.
Please note if basic salary of an employee was less than 6500 and he was contributing towards PF earlier, you can not terminate his membership even his basic salary has exceeded 6500 at any later stage. Of course, both employer & employee contribution can be restricted on 6500 in such cases.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
