First of all YES. Establishment will be liable for penalty under EPF.
If you are thinking why ? Because it is mandatory for the establishment to be registered under EPF act at the time it has the strength of more then 20+ employees.
EPF challan can not be submitted on line. (for
)
Now the solution: Register under EPF as soon as possible.
This part must not be followed:Show the strength of the establishment more then 20 employees for the last 2 or 3 months before registration. This way your liability of penalty ( Section 14B & 7Q) will be reduced.
Now the hard part (still not recommending it) you have to make balance sheets and other documents to show the above said. (if the inspection being done by the EPF officials)
Important: Penalty would be 100% (i.e. the amount deposited by the employer through challans for last periods) and the interest would be equal to the amount which being announced by EPF office yearly (say 9.5% for last year)
Stay Cool
Atom
From India, Phagwara
19If you are thinking why ? Because it is mandatory for the establishment to be registered under EPF act at the time it has the strength of more then 20+ employees.
EPF challan can not be submitted on line. (for
Now the solution: Register under EPF as soon as possible.
This part must not be followed:Show the strength of the establishment more then 20 employees for the last 2 or 3 months before registration. This way your liability of penalty ( Section 14B & 7Q) will be reduced.
Now the hard part (still not recommending it) you have to make balance sheets and other documents to show the above said. (if the inspection being done by the EPF officials)
Important: Penalty would be 100% (i.e. the amount deposited by the employer through challans for last periods) and the interest would be equal to the amount which being announced by EPF office yearly (say 9.5% for last year)
Stay Cool
Atom
From India, Phagwara
Dear Shenbagarajan,
Thank Your very much, Actually we are paying net salary Rs.4000 without consideration any allowances. My doubt is that If we take Rs.3000 as Basic salary then how to split the reaming Rs.1000 as a allowances? Kindly suggest me what are the allowances can be taken into account? Our BPO is in Rural.
With Regards,
Thangaraj.P
From India, Tuticorin
Thank Your very much, Actually we are paying net salary Rs.4000 without consideration any allowances. My doubt is that If we take Rs.3000 as Basic salary then how to split the reaming Rs.1000 as a allowances? Kindly suggest me what are the allowances can be taken into account? Our BPO is in Rural.
With Regards,
Thangaraj.P
From India, Tuticorin
Dear Thangaraj,
Which state do you belong?
Even though it is rural Minimum wage is applicable for all.
If you are giving more than the minimum wage you can go ahead with the following heads
Basic + DA - 3000
HRA - 600
TA - 200
Medical allowance - 200
Else
Basic + DA ( As per minimum wages)
HRA (20 - 40% of basic)
TA(Transport allowance of Rs.800(maximum)
From India, Mumbai
Which state do you belong?
Even though it is rural Minimum wage is applicable for all.
If you are giving more than the minimum wage you can go ahead with the following heads
Basic + DA - 3000
HRA - 600
TA - 200
Medical allowance - 200
Else
Basic + DA ( As per minimum wages)
HRA (20 - 40% of basic)
TA(Transport allowance of Rs.800(maximum)
From India, Mumbai
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