Dear Vaibhav,
In my opinion, being an IT company will not exclude your company from the coverage of the EPF Act. It is quite correct that the applicability clause of the Act do not specify the "IT Inustries" in the list of notified industries for coverage of the Act. However, the EPF Department covers such types of companies under the ambit of "Expert Services". Even many big IT companies like Wipro, Infosys etc. are either covered under the EPF Act or havce their own EPF Trust.Had they followed the same rule they too would have been out of the EPF net after all who wants to increase their input Cost.
Now, as per the EPF Act an establishment having the employees strength of 20 employees (including employees employed through a contractor like Security Guard, House Keeping Staff or all other hired staff) are required to be covered under the EPF Act. Now for the purpose of EPF Contribution, the employees Basic+DA Salary structure are to be taken inti account. In case an employee is drawing Gross Annual Wages of Rs.2.4 laks but his Basic+DA is less than 6500/- per month (not Rs.6000/- as per your freind) then he 'll be compulsorily required to be the member of the EPF Scheme. It is only when, and its avialable for the first time only, when an employees Basic Salary including DA is more than Rs.6500/- per month, then he can, as per his wish, as your friend suggested can remain out of bound of the EPF Covereage till he draws Basic Salary of more than the ceiling (as per Para 2(f)(ii) of the EPF Scheme.
Now in your case, even if all 20 employees are drawing (Basic) wages of more than Rs. 6500/ per month and even if all of them opt out of coverege of the EPF Act. I'd, as an EPF/ESI Consultant advice you to get your company registered under the EPF Act from the first date when the employees strength of your company including Contractor employees exceeded 20 in order to avoid any legal hassle later on. Because it'll not be very complicated/lengthy process. Furthermore, as a tool of retiral benefit if the employees of your company opt for coverage under the Act, they can save their hard earned money.
In case, none of your employees are under EPF coverage and you have been covered under the EPF Act and has been issued the Code Number, all you'll be required to do is to deposit Rs.7/- through a Bank Challan and file one coopy of the challan with the EPF Dept through the monthly Return of contribution and deposit a NIL Annual Return of contribution. You'll also be required to maintain a register of memebr, called eligibilty register, wherein you'll have to mention name of all employees even if thry are not member of the EPF Scheme with other particulars (except EPF Account Numbers and the date of EPF membership). You'll be required to get a declaration from the employees regarding their wish to be enrolled as member of the EPF Scheme and also Form-11. And thats it.
I have tried to provide you a detailed answer to your query, in case, there still remains anything which need clarification, you can either post it here or write to me at
.
From India, Delhi
26In my opinion, being an IT company will not exclude your company from the coverage of the EPF Act. It is quite correct that the applicability clause of the Act do not specify the "IT Inustries" in the list of notified industries for coverage of the Act. However, the EPF Department covers such types of companies under the ambit of "Expert Services". Even many big IT companies like Wipro, Infosys etc. are either covered under the EPF Act or havce their own EPF Trust.Had they followed the same rule they too would have been out of the EPF net after all who wants to increase their input Cost.
Now, as per the EPF Act an establishment having the employees strength of 20 employees (including employees employed through a contractor like Security Guard, House Keeping Staff or all other hired staff) are required to be covered under the EPF Act. Now for the purpose of EPF Contribution, the employees Basic+DA Salary structure are to be taken inti account. In case an employee is drawing Gross Annual Wages of Rs.2.4 laks but his Basic+DA is less than 6500/- per month (not Rs.6000/- as per your freind) then he 'll be compulsorily required to be the member of the EPF Scheme. It is only when, and its avialable for the first time only, when an employees Basic Salary including DA is more than Rs.6500/- per month, then he can, as per his wish, as your friend suggested can remain out of bound of the EPF Covereage till he draws Basic Salary of more than the ceiling (as per Para 2(f)(ii) of the EPF Scheme.
Now in your case, even if all 20 employees are drawing (Basic) wages of more than Rs. 6500/ per month and even if all of them opt out of coverege of the EPF Act. I'd, as an EPF/ESI Consultant advice you to get your company registered under the EPF Act from the first date when the employees strength of your company including Contractor employees exceeded 20 in order to avoid any legal hassle later on. Because it'll not be very complicated/lengthy process. Furthermore, as a tool of retiral benefit if the employees of your company opt for coverage under the Act, they can save their hard earned money.
In case, none of your employees are under EPF coverage and you have been covered under the EPF Act and has been issued the Code Number, all you'll be required to do is to deposit Rs.7/- through a Bank Challan and file one coopy of the challan with the EPF Dept through the monthly Return of contribution and deposit a NIL Annual Return of contribution. You'll also be required to maintain a register of memebr, called eligibilty register, wherein you'll have to mention name of all employees even if thry are not member of the EPF Scheme with other particulars (except EPF Account Numbers and the date of EPF membership). You'll be required to get a declaration from the employees regarding their wish to be enrolled as member of the EPF Scheme and also Form-11. And thats it.
I have tried to provide you a detailed answer to your query, in case, there still remains anything which need clarification, you can either post it here or write to me at
From India, Delhi
Dear all, Kindly let me know how to become HR consultant,i want to start HR consultant,so please let me know the complete procedure to work for clients Thanks & Regard Minesh Kumar
From India, Gurgaon
From India, Gurgaon
Yes, you have to make a Demand Draft for Rs- 3000 (There is no fixed Amount, it will consider as a security / advance payment and will be adjusted in the next contribution) in favor of "SBI A/c EPF"
Thanks
Sunny
Thanks
Sunny
There are three ways in which PF Act can be made applicable to a concern:
1.Automatic coverage :employing 20(10 as per recent ammendment) or more employees, including factories
2.Coverage by CG: where automatic coverage is not applicable and the CG wants to make the Act applicable, it may do so, by giving at least 2 months notice in the official gazette.
3.Voluntary applicability: less than statutory minimum number of employees but the employer and majority of employees agree to make the Act applicable through an application to the CPFC
From India, Delhi
1.Automatic coverage :employing 20(10 as per recent ammendment) or more employees, including factories
2.Coverage by CG: where automatic coverage is not applicable and the CG wants to make the Act applicable, it may do so, by giving at least 2 months notice in the official gazette.
3.Voluntary applicability: less than statutory minimum number of employees but the employer and majority of employees agree to make the Act applicable through an application to the CPFC
From India, Delhi
Dear Minkoo, If we opt out from EPF, does our company face any legal complication in the long run? Regards Binu
From United States
From United States
Dear srinivas
hi this rafiq, I had recently join at pathological company for bangalore.Head office located at hyd, We are expand in bangalore,my query is now i want to take saperate EPF & ESI code for emps. It is necessory to take code or not.pls can u clarify this one.
waiting for u r response.
From India, Hyderabad
hi this rafiq, I had recently join at pathological company for bangalore.Head office located at hyd, We are expand in bangalore,my query is now i want to take saperate EPF & ESI code for emps. It is necessory to take code or not.pls can u clarify this one.
waiting for u r response.
From India, Hyderabad
Dear Binu,
Thanks for the info, could you please provide the implementation date of EPF Registration for 10 or more employees firms. i din't find the amendment in epf web site. kindly provide the notification along with the effective date if possible.
Thanks & Regards,
Sujatha
From India, Bangalore
Thanks for the info, could you please provide the implementation date of EPF Registration for 10 or more employees firms. i din't find the amendment in epf web site. kindly provide the notification along with the effective date if possible.
Thanks & Regards,
Sujatha
From India, Bangalore
[quote=Binumol;463430]Dear All,
We are a start up Company doing CAD outsourcing work. As per the new EPF guidelines we need to register in EPF.Can anyone breif about the EPF registration formalities?
Dear,As per our requirement regarding EPF Rgeistration;following documents are required for deciding final date of coverage under EPF.1. Shops& establishment Registration2. Partnership Deed( In case Partnership OR Propoertership Owner) 3. Pan Number of firm4. copy of P.Tax Registration5. details of Gala Purchase(viz copy of agreement)6. 1st electricity Bill7. 1st sale Bill /Purchase Bill8. salary wages registers & attendance register since beginning9. month wise strength of number of employees since beginning10. list of partners/ owners along with their residential address11. Name of the Bankers, address of the bank and name of the person responsible for financial affairs.12. Balance sheet / P&L accounts13. Letterheads (20) If you have any queries, please contact me on 9892727246Warm Regards,Deepak Shinde
We are a start up Company doing CAD outsourcing work. As per the new EPF guidelines we need to register in EPF.Can anyone breif about the EPF registration formalities?
Dear,As per our requirement regarding EPF Rgeistration;following documents are required for deciding final date of coverage under EPF.1. Shops& establishment Registration2. Partnership Deed( In case Partnership OR Propoertership Owner) 3. Pan Number of firm4. copy of P.Tax Registration5. details of Gala Purchase(viz copy of agreement)6. 1st electricity Bill7. 1st sale Bill /Purchase Bill8. salary wages registers & attendance register since beginning9. month wise strength of number of employees since beginning10. list of partners/ owners along with their residential address11. Name of the Bankers, address of the bank and name of the person responsible for financial affairs.12. Balance sheet / P&L accounts13. Letterheads (20) If you have any queries, please contact me on 9892727246Warm Regards,Deepak Shinde
Dear,As per your requirmentregarding EPF Reg.following documents are required for deciding final date of coverage underEPF.1. Shops& establishment Registration2. Partnership Deed( In case Partnership OR Propoertership Owner) 3. Pan Number of firm4. copy of P.Tax Registration5. details of Gala Purchase(viz copy of agreement)6. 1st electricity Bill7. 1st sale Bill /Purchase Bill8. salary wages registers & attendance register since beginning9. month wise strength of number of employees since beginning10. list of partners/ owners along with their residential address11. Name of the Bankers, address of the bank and name of the person responsible for financial affairs.12. Balance sheet / P&L accounts13. Letterheads (20) If you have any queries, please contact me on 9892727246Warm Regards,Deepak Shinde
Hi Mr. Rafiq,
You no need to take one more registration, Actually both are central Acts, PF you can pay anyware in india (depends on your payroll process) and ESI you can take subcode.
Regards
Srinivas B
hi this rafiq, I had recently join at pathological company for bangalore.Head office located at hyd, We are expand in bangalore,my query is now i want to take saperate EPF & ESI code for emps. It is necessory to take code or not.pls can u clarify this one.
waiting for u r response.[/quote]
From India, Hyderabad
You no need to take one more registration, Actually both are central Acts, PF you can pay anyware in india (depends on your payroll process) and ESI you can take subcode.
Regards
Srinivas B
hi this rafiq, I had recently join at pathological company for bangalore.Head office located at hyd, We are expand in bangalore,my query is now i want to take saperate EPF & ESI code for emps. It is necessory to take code or not.pls can u clarify this one.
waiting for u r response.[/quote]
From India, Hyderabad
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Registration for EPF-Procedures & documents.docx
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