accounting treatment of EPF Entry under PMRPY Scheme

please give details of transaction for help

one company is showing full 12% part of employer contribution as its liability. However, its should be reduced since 8.33% is borne by GOI. what should be the entry if company has already shown 12% as its Liability in its Books.

Please reply ASAP.

Dear members I have a query regarding treatment of EPF Entry Inands of employer What will be the accounting treatment of rebate amount under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme during passing the entry in books of accounts ? Will it be treated under balance with revenue authorities or other because it will affect the books for each month of three years .  Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=491743

Dear member, how to calculate late payment penalty for pmrpy.gov.in payment?

Hello every one let me tell you what we are doing regarding this issue 

main objective of this scheme is to encourage the employer to hire more employee to avail benefit of this scheme and generate employment for new unskilled and semi skilled workers.

under employer contribution to the provident fund consist of 2 factor EPF (employee provident fund ) and  EPS (employee pension scheme)

Employer are required to contribute 3.67% in EPF and 8.33% in EPS (same as employee contribution which is 12%) 

this percentage are based on basic salary of month and does not include other allowance 

 

so under This PMRPY scheme central Government will contribute the 8.33 % share of EPS of the employer hench eligible employer now required to pay only 3.67% to the Provident fund 

 

in this scenario we are not receiving any direct benefit from government the share of contribution directly credited in the Employee PF account after employer make payment of 3.67% before 10th of the succeeding month 

 

so we pass the entry

EPF Employer Contribution Account   DR    ______

                To PMRPY Income Account                           _________                       

 

by this entry PMRPY benefit get set off with the employer contribution 

 

hope this information found useful for you 

RESPECTED SIR,

I WANT TO ASK QUERY REGARDING PMPRY SCHEME.

AS PER PF ACT, GOVT. WILL CONTRIBUTE 8.33% SHARE OF EPS OF THE EMPLOYER AND REMAINING 3.67% WILL BE PAID BY EMPLOYER. BUT IN MY CASE THAT 3.67% WAS ALSO PAID BY GOVT.

THAN WHAT WIL BE THE TREATMENT AND SALARY WILL BE CALCULATE IN THAT CASE.

 

What is the treatment of employee share in PMRPY??

To account the GOVERNMENT GRANTS under PF ABRY SCHEME towards Government undertaking to pay the EMPLOYEE CONTRIBUTION and EMPLOYER CONTRIBUTION for NEW EMPLOYEES

What are the accounting entries to be passed in books of accounts ?

Please guide whether shown below is correct ?

EMPLOYEE CONTRIBUTIN                       Dr.   Rs.1,800

EMPLOYER CONTRIBUTION 8.33%         Dr.   Rs.1249

EMPLOYER CONTRIBUTION 3.67%         Dr.   Rs. 551

TO     PF ABRY INCOME - GOVERNMENT GRANTS        ..    3,600

 

(TREATING the GOVERNMENT GRANTS as OTHER INCOME)

If the above entry is wrong, what is the correct entry to pass every month

whether to treat it as INCOME or as CURRENT ASSET ?(with examples of  full accounting) 

 

- V. Sukhavana Vidhya

Email : sukhavanavidhya.v @ gmail.com