Reporting of undisputed statutory dues in caro

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If a company does not deduct the Provident fund on salary/wages of temporary employees, though as per PF provisions it is liable to deduct the same. The company does not deposit the emplyee as well as emplyer contributions of such employess and therefore the above are not appearing as payable in the books. In such case whether the above shall be considered as undisputed dues to be reported in CARO as irregularity in deposit of statutory dues. The argument of the company is that when they have not deducted PF it can not be considered as undisputed dues.
Replies (4)

s per the provisions of the Act, it applies to an establishment employing 20 or more workmen at any point of time during previous year. But the question is whether, an establishment which in usual course does not employ 20 or more workers, but only on some occasions temporarily employs extra staff is to be covered under the Act or not.

Madras High Court in its recent judgement in the case of M/s New Star English School, Nagapattinam has clarified this situation1. Here the Hon’ble court emphatically ruled that since the Act covers casual employees, temporary employees should be considered for assessing eligibility under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (the Act).

 

 

 

 

Company is employing 100 employees and out of it is saying only 45 are regular, others are temp/casual workers. It is complying with PF provision in respect of the Regular workers.

Its a company responsibility to deduct the PF.

 

The company should check whether PF is deducted or not on time n paid to Government 

Thanks for ur kind advise Amit, but thats for future. Present question is that whether non deduction amounts to "non deposit of undisputed statutory dues"liable to be reported in CARO. Wud need some Senior person's advise please. 


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