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accounting treatment of EPF Entry under PMRPY Scheme

(Guest)

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 .

Please suggest

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8 Replies

Rohit jain (Chartered Accountant / Company Secretary) (221 Points)
Replied 11 November 2018

please give details of transaction for help

ASHISH (ARTICLE) (22 Points)
Replied 17 April 2019

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.

suman (accounts) (25 Points)
Replied 18 August 2019

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

Harsha Hegde (4 Points)
Replied 04 April 2020

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

CA Gaurav Sonar (CA ) (30 Points)
Replied 10 June 2020

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

1 Like

Govind maheshwari ( ARTICLESHIP) (2 Points)
Replied 25 July 2020

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.

Bhupendra (Student) (22 Points)
Replied 02 April 2022

What is the treatment of employee share in PMRPY??

Sukhavana Vidhya.V (ACCOUNTS MANAGER) (26 Points)
Replied 04 October 2022

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