provident fund
This query is : Resolved
11 May 2010
a company engaged in outsource activity not deducting PF on ground that it has less than 20 people.What would be its applicability to user of service
11 May 2010
PRIYA,
1) Who will be covered by the Pension Scheme?
ANS:-
Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after 16-11-95 is compulsorily to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.
2) What is a covered establishment?
ANS:-
Covered establishment is an establishment belonging to the class of industries / other establishments, which has been listed in the schedule appended to the Employees' Provident Fund and Miscellaneous Provisions Act 1952 and where 20 or more persons are employed.
Constitution of the Board of Trustees:
The employer shall constitute a board of trustees under the chairmanship of the
Employer for the management of the provident fund according to such directions as maybe given by the central provident fund commissioner or by the central government, as per case may be, from time to time. The provident fund shall vest in the board of trustees who will be responsible for and accountable to the employees’ provident fund organization inter-alia for proper accounts of the receipts into and payments from the provident and the balance in their custody.
The number of Trustees on the Board shall be so fixed as to afford, as far as possible,
Representation to workers in branches / departments of the establishment provided that the number of Trustees on the Board shall be neither less than FOUR nor more than TWELVE.
notwithstanding anything contained in this rule, the board of trustees may, on the joint
request in writing, of any employee of the establishment and the employer, enroll such
employee as a member or allow him to contribute on more than six thousand and
five hundres rupees of his pay per month if he is already a member of the fund
and thereupon such employee shall be entitled to the benefits and shall be subject to the
conditions of the fund, provided that the employer gives an undertaking in writing that
he shall pay the inspection charges payable and comply with all statutory provisions in
respect of such employee.
(e) every employee shall on becoming a member sign a declaration in the form set out in
annexure “b”. absence of such declaration will not, however, invalidate his
membership.
Every member contributing to the provident fund under sub-rule (a) herein may, if so
desires, contribute voluntarily to the provident fund an amount exceeding 12% of his
total monthly basic pay and dearness allowance. A member desiring to contribute to the
provident fund an amount exceeding 12% of his basic pay and dearness allowance per
month shall submit an application in the form set out in Annexure “E”. A member who
is permitted to contribute to the provident fund an amount exceeding 12% of his total
monthly basic pay and dearness allowance shall be allowed to change the rate of
voluntary contribution on his applying for such change in contribution, only at intervals
of a minimum period of one year. Such a change in the rate by way of voluntary
contribution shall only be given effect to from the beginning of an accounting period of
the Fund.
Provided that where the pay of the member exceeds Rs.6500/- per month where
contribution payable by the employer be limited to the amount on his pay of Rs.6500/-
only.
1) Who will be covered by the Pension Scheme?
ANS:-
Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after 16-11-95 is compulsorily to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.
2) What is a covered establishment?
ANS:-
Covered establishment is an establishment belonging to the class of industries / other establishments, which has been listed in the schedule appended to the Employees' Provident Fund and Miscellaneous Provisions Act 1952 and where 20 or more persons are employed.
Constitution of the Board of Trustees:
The employer shall constitute a board of trustees under the chairmanship of the
Employer for the management of the provident fund according to such directions as maybe given by the central provident fund commissioner or by the central government, as per case may be, from time to time. The provident fund shall vest in the board of trustees who will be responsible for and accountable to the employees’ provident fund organization inter-alia for proper accounts of the receipts into and payments from the provident and the balance in their custody.
The number of Trustees on the Board shall be so fixed as to afford, as far as possible,
Representation to workers in branches / departments of the establishment provided that the number of Trustees on the Board shall be neither less than FOUR nor more than TWELVE.
notwithstanding anything contained in this rule, the board of trustees may, on the joint
request in writing, of any employee of the establishment and the employer, enroll such
employee as a member or allow him to contribute on more than six thousand and
five hundres rupees of his pay per month if he is already a member of the fund
and thereupon such employee shall be entitled to the benefits and shall be subject to the
conditions of the fund, provided that the employer gives an undertaking in writing that
he shall pay the inspection charges payable and comply with all statutory provisions in
respect of such employee.
(e) every employee shall on becoming a member sign a declaration in the form set out in
annexure “b”. absence of such declaration will not, however, invalidate his
membership.
Every member contributing to the provident fund under sub-rule (a) herein may, if so
desires, contribute voluntarily to the provident fund an amount exceeding 12% of his
total monthly basic pay and dearness allowance. A member desiring to contribute to the
provident fund an amount exceeding 12% of his basic pay and dearness allowance per
month shall submit an application in the form set out in Annexure “E”. A member who
is permitted to contribute to the provident fund an amount exceeding 12% of his total
monthly basic pay and dearness allowance shall be allowed to change the rate of
voluntary contribution on his applying for such change in contribution, only at intervals
of a minimum period of one year. Such a change in the rate by way of voluntary
contribution shall only be given effect to from the beginning of an accounting period of
the Fund.
Provided that where the pay of the member exceeds Rs.6500/- per month where
contribution payable by the employer be limited to the amount on his pay of Rs.6500/-
only.
11 May 2010
Dear Priya,
As per me if the company no. of employeesa are not more then 20 and the salary is not less then 6500 then there is no compulsion of PF registration and it will not at all effect the service user.
As per me if the company no. of employeesa are not more then 20 and the salary is not less then 6500 then there is no compulsion of PF registration and it will not at all effect the service user.
11 May 2010
actually i wanted to explain you that
Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after 16-11-95 is compulsorily to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.
and Covered establishment is an establishment belonging to the class of industries / other establishments, which has been listed in the schedule appended to the Employees' Provident Fund and Miscellaneous Provisions Act 1952 and where 20 or more persons are employed.
employee contribution is 12% and employer is 8%.
Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after 16-11-95 is compulsorily to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.
and Covered establishment is an establishment belonging to the class of industries / other establishments, which has been listed in the schedule appended to the Employees' Provident Fund and Miscellaneous Provisions Act 1952 and where 20 or more persons are employed.
employee contribution is 12% and employer is 8%.
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
- Post Office RD Interest
- Reporting Income under Section 44ADA
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- TDS ON CASH WITHDRAWALS...
- Eway bill for machinery reparing
- Annual return of gst limit
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- 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
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
