Dear Freinds,
Can anybody guide me.
How long we should keep company accounts records for EPF Inspection .
Because EPF inspector comes to our Office and given a notice to Show All accounts records like Cash Book , Ledger , Voucher etc since date of Last Inspection . Whereas our Last inspection date is 09.01.02 . So we have to show last 10years records .
Is there any provision to avoid to show since long years records ? Any circular etc.
Please share with me if any.
Tapas Ghosh
CM Flowmeters (India) Pvt. Ltd. / Kolkata
From India, Calcutta
3Can anybody guide me.
How long we should keep company accounts records for EPF Inspection .
Because EPF inspector comes to our Office and given a notice to Show All accounts records like Cash Book , Ledger , Voucher etc since date of Last Inspection . Whereas our Last inspection date is 09.01.02 . So we have to show last 10years records .
Is there any provision to avoid to show since long years records ? Any circular etc.
Please share with me if any.
Tapas Ghosh
CM Flowmeters (India) Pvt. Ltd. / Kolkata
From India, Calcutta
There is no time limit in PF ACT to keep the records. As per Income Tax act, you need to Keep 10 year records. Therefore you can not avoid to show them the records. regards Manjay
From India, Delhi
From India, Delhi
Dear
I am disagree with the Income Tax record limitation for 10 years. In accordance with the statutory provisions stipulated in Income Tax Act, 1961 it is five years, the record is kept. As far as question of PF records belongs truly there is no such specified tenure to keep the record. For inspection point of view, you can ask the inspecting authority the reasons for conducting PF inspection. At present such inspections are done only for the defaulting employers wherein monthly contribution is not deposited well within time limit and wherein membership dropped down drastically. You can provide detail of deposits for 10 years being a revenue matter and you are not bound to produce book of accounts for 10 years tenure, they could not put binding upon you.
Regards
R B Yadav
Advocate
From India, Gurugram
I am disagree with the Income Tax record limitation for 10 years. In accordance with the statutory provisions stipulated in Income Tax Act, 1961 it is five years, the record is kept. As far as question of PF records belongs truly there is no such specified tenure to keep the record. For inspection point of view, you can ask the inspecting authority the reasons for conducting PF inspection. At present such inspections are done only for the defaulting employers wherein monthly contribution is not deposited well within time limit and wherein membership dropped down drastically. You can provide detail of deposits for 10 years being a revenue matter and you are not bound to produce book of accounts for 10 years tenure, they could not put binding upon you.
Regards
R B Yadav
Advocate
From India, Gurugram
Dear Sir,
Thank you for your kind reply. You have mentioned in income tax Act is a provision for keeping record for FIVE years.
So could you please give us the circular reference with effecting date of the said provision. We would like to produce to the inspector as a reason that we are not keeping record beyond FIVE years.
Regards,
Tapas Ghosh
From India, Calcutta
Thank you for your kind reply. You have mentioned in income tax Act is a provision for keeping record for FIVE years.
So could you please give us the circular reference with effecting date of the said provision. We would like to produce to the inspector as a reason that we are not keeping record beyond FIVE years.
Regards,
Tapas Ghosh
From India, Calcutta
Dear Sir,
As such you need to maintain the records for the life long . as it is possible that an employee is working with your firm for the last 10 or 15 years .. But for inspection purpose you need show records for only last 7 years. This is as per the circular by EPFO ,, at present i do not have the copy of the same but i will search the same and post it over here. You can still search for the circular in citeHR because i have downloaded the circular from here.
regards
Vallabh
From India, Mumbai
As such you need to maintain the records for the life long . as it is possible that an employee is working with your firm for the last 10 or 15 years .. But for inspection purpose you need show records for only last 7 years. This is as per the circular by EPFO ,, at present i do not have the copy of the same but i will search the same and post it over here. You can still search for the circular in citeHR because i have downloaded the circular from here.
regards
Vallabh
From India, Mumbai
Dear
The inspection Policy of the EPFO is lying upon their website, you can download it from the website. As far as question of income tax record keeping belongs, it is five years and the copy of the notification is lying upon income tax website in archive items. Further last year ESI Corporation has also issued notification to this effect and the same is also lying upon website.
Thanks
Regards
R B Yadav
Advocate
From India, Gurugram
The inspection Policy of the EPFO is lying upon their website, you can download it from the website. As far as question of income tax record keeping belongs, it is five years and the copy of the notification is lying upon income tax website in archive items. Further last year ESI Corporation has also issued notification to this effect and the same is also lying upon website.
Thanks
Regards
R B Yadav
Advocate
From India, Gurugram
I would rather advise for production of whatever records are with you from a particular period and give in writing that-1. No records prior to this period are lying with you being old period and volumonous. 2. That you are ready to pay the liability ,if any, if raised in future out of any complaint filed by any ex emlployee at any stage.3. You may request in writing for supply of copy of complain't .if any ,lying at present with the RPFC for your verification and reply.
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
Dear Mr. Tapas,
Re. your query of how long to keep the records.
Your can keep the payment challans and other related records of payment for a period of 7 years.
Since you are in the Electronic age, you can scan and keep the things in the Soft Form of the previous records. Especially, it will help you in the long run at the time of settlement of a person as regard to Form-5, 10, Form-2 as well as your Company's registered records.
Hope the respected members will also agree for the same.
Regards.
Ravi.
Retd.Sr. HR & Comml. Exe.
From India, Mumbai
Re. your query of how long to keep the records.
Your can keep the payment challans and other related records of payment for a period of 7 years.
Since you are in the Electronic age, you can scan and keep the things in the Soft Form of the previous records. Especially, it will help you in the long run at the time of settlement of a person as regard to Form-5, 10, Form-2 as well as your Company's registered records.
Hope the respected members will also agree for the same.
Regards.
Ravi.
Retd.Sr. HR & Comml. Exe.
From India, Mumbai
Company law requires you to maintain all accounting records for a period of 8 years from end of the financial year. It requires accounting records but not the supporting working or computation beyond that is necessary beyond identification ofnthe transaction. Most companies follow the rules of keeping the record for 8'years.
. Most labour laws require you to keep records for 3 years (payment of wages act, minimum wages act, etc)
So in effect, if the inspector ask for the record, you can show him accounting records like payment vouchers and copies of challans. However, wage registers, etc are going to be available for only 3 years. So he can really speaking, check for 3 years.
Why did you allow the matter go to a show cause level ? Why did you not show him current and 3 years records when he came first ? It would have been simpler, unless you have things to hide. Now I don't know how acrimonious you have made the situation. If possible, give him a reply to the show cause offering to show records for 3 years and that you do not have older records. Further, speak to him and conscience him nothing wrong has been done and that he can check 3 years records. If he finds any difference, the he can always ask for other records. You can also find our what is wrong and whynhe is conducting an investigation
From India, Mumbai
. Most labour laws require you to keep records for 3 years (payment of wages act, minimum wages act, etc)
So in effect, if the inspector ask for the record, you can show him accounting records like payment vouchers and copies of challans. However, wage registers, etc are going to be available for only 3 years. So he can really speaking, check for 3 years.
Why did you allow the matter go to a show cause level ? Why did you not show him current and 3 years records when he came first ? It would have been simpler, unless you have things to hide. Now I don't know how acrimonious you have made the situation. If possible, give him a reply to the show cause offering to show records for 3 years and that you do not have older records. Further, speak to him and conscience him nothing wrong has been done and that he can check 3 years records. If he finds any difference, the he can always ask for other records. You can also find our what is wrong and whynhe is conducting an investigation
From India, Mumbai
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