Registration in employee provident fund

Save Share

This query is : Resolved

Quick Summary

This discussion explores whether a statutory body, operating from government premises and not holding a shops and establishment license, is required to register with the Employees' Provident Fund (EPF). Key considerations include whether the organisation is profit-making, the number of employees, and their salary levels. It's clarified that if all employees earn over £15,000 per month, EPF registration is generally not compulsory, even if the organisation has more than 20 employees, especially if a separate, gazetted provident fund is already maintained.

Prajakta Potdar

Prajakta Potdar (Querist)
Follow

12 March 2021 Statutory body which comes into existence under section 3 of Advocate Act, which has alloted premises in Government premises, so not having shops and establishment license, is liable to registered in EPF? Actually it is not a profit making organisation and not comes under private sector.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 March 2021 Yes, provided it employes more than 20 employees and makes payment 15000 or less.

Prajakta Potdar

Prajakta Potdar (Querist)
Follow

13 March 2021 But if that has separate provident fund in nationalized Bank and salary of all employees is greater than 15000.00 then is it compulsory to transfer to epf? As far as my knowledge, epf is for private sector employees. The said statutory body's income is exempted as per Supreme Court judgment. And it is not a profit making organisation. The rules of separate provident fund are published in government gazette. Provident fund is duly deducted and kept separately along with Employers contribution . Please guide, by prima face all features of statutory body are like public sector, and for public sector is it compulsory to keep provident fund in EPF ? Please guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 March 2021 On such a case EPF is not compulsory as employees are drawing pay more than 15000. Most of the PSUs are following separate PF trust of their own.
You can continue the present arrangement.
No need for EPF registration.

Prajakta Potdar

Prajakta Potdar (Querist)
Follow

13 March 2021 Thanks for your valuable guidance. One more query . If number of employees in such statutory body exceeds 20, can they continue the same provident fund of their own or not? Please guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 March 2021 As salary is more than 15000 for all the employees, number of employees condition not applicable.

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