| I have a problem on which i need some legal views. My company employed few people in oct 2006 and started deducting PF pending registration with PF authorities. Important fact to note is contract letter mentioned that PF amount will be deducted from their salaries and equal amount will be contributed by the company. Now PF authorities alloted registration from Oct 2007 . The company wrote many letters to PF authorities requesting for advise on what to do with PF amounts as company cannot deposit the same due to lack of registration number for the said period. So what should be done to PF amount 1.deducted from employees 2.contributed by company (and provided in liabilities) 3.PF admin charges (provided in liabilities) Dear Pawan, This is not possible that you will submit your Coverage to the PF Deptt commencing date mentioned Oct-2006 & PF Deptt. will issue the code w.e.f Oct-07. That may be a clerical mistake. You can Deposited the contributions challans/returns on applied for basis. Please write a letter to PF Commissioner to rectify the PF code commencing Date. Secondly, have you paid all the contribution challans from Oct-06 onward & returns. If yes, then this is very easy process on both angle. If no, then that is very typical, because you have to paid all the contributions from Oct-06 onwards with penalty & damages and have to submit monthly & yearly returns. If your will not get rectified your code & will not submit the contributions that may create a great problem for you. i.e. employees may sue the case against the company that you are deducting the PF from their salary from Oct-06 & not depositing to PF Deptt. or PF Deptt. can inspect you records and can impose panelty on your company. I have the above is suffice for your queries. Rgds/Jitender Dear Mr.Pawan, 1. A. What is the date of commencement of the company? B. How many employees ( Workmen + Admin. Staff+ Managers +Sales personnel ) on the date of commencement and from when onwards, 20 or more persons were employed ? 2. From Oct. 2006, whether 20 or more persons were employed ? If yes, notwithstanding the allocation of code No. by EPF Dept., the Employer is liable of payment of PF contribution both in respect of Employer portion as well as employee portion. Though the liability to pay the total contribution is on the employer, the employer has the right to deduct the employee contribution from the wages of the employees. In case the no.of employees was 20 or more in Oct.06, non-payment of deducted PF contribution is a criminal offence and other legal consequences. Again, I would like to reiterate that allocation Code No. by EPF Dept. from Oct.07 is not an excuse, since it is the primary responsibility to ensure compliance with the provisions of EPF Act. 3. Since the damages would be more than 100% for non-payment of deducted contribution including imprisonment, Please act expeditiously without any further delay. A.Irudayam Advocate and HR Consultant +919940686632
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