Type:Preventive Compliance
Frequency: Specific Day
Action to be taken:
Pay to the Government Provident and Insurance Funds each month, a specified percentage of pay of all employees ...S.O. 1437 dated July 9, 1998 puts Inspection Charges at 1.10% of pay
Audit Requirement:Are administration charges being paid every month to the Provident Fund alongwith the monthly contributions ?
Supporting Documents:Proof of payment of administrative charges
To be complied on the following days every year
15-January;
15-February;
15-March;
15-April;
15-May;
15-June;
15-July;
15-August;
15-September;
15-October;
15-November;
15-December;
Related Keywords:
Contributions
Provident Fund
Related Sections:
Employees Provident Fund Scheme, 1952
Chapter:Contributions|
30:Payment of contribution:
(1) The employer shall, in the first instance, pay both the contribution payable by himself (in this Scheme referred to as the employer's contribution) and, also on behalf of the member employed by him directly or by or through a contractor, the contribution payable by such member (in the Scheme referred to as the member's contribution).
(2) In respect of employees employed by or through a contractor, the contractor shall recover the contribution payable by such employee (in the Scheme referred to as the member's contribution ) and shall pay to the principal employer the amount of member's contribution so deducted together with an equal amount of contribution (in the Scheme referred to as the employer's contribution) and also administrative charges.
(3) It shall be the responsibility of the principal employer to pay both the contribution payable by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor and also administrative charges .
Explanation.-For the purposes of this paragraph the expression "administrative charges" means such percentage of the pay (basic wages, dearness allowances, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee and in respect of which provident fund contributions are payable as the Central Government may, in consultation with the Central Board and having regard to the resources of the Fund for meeting its normal administrative expenses fix.
Employees Provident Fund Scheme, 1952
Chapter:Declaration, Contribution Cards and Returns|
38:Mode of payment of contributions:
(1) The employer shall, before paying the member his wages in respect of any period or part of period for which contribution are payable, deduct the employees contribution from his wages which together with his own contribution as well as an administrative charge of such percentage of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee and in respect of which provident fund contribution are payable, as the Central Government may fix, he shall within fifteen days of the close of every month pay the same to the Fund by separate bank drafts or cheques on account of contributions and administrative charge :
Provided that if the payment is made by a cheque, it should be drawn only on the local bank of the place in which deposits are, made:
Provided further that where there is no branch of the Reserve Bank or the State Bank of India at the station where the factory or other establishment is situated, the employer shall pay to the Fund the amount mentioned above by means of Reserve Bank of India Governmental drafts at par separately on account of contributions and administrative charge.
(2) The employer shall forward to the Commissioner within twenty-five days of close of the month, a monthly abstract in such form as the Commissioner may specify showing the aggregate amount of recoveries made from the wages of all the members and the aggregate amount contributed by the employer in respect of all such members for the month :
Provided that an employer shall send a Nil return, if no such recoveries have been made from the employees:
Provided further that in the case of any such employee who has become a member of the Pension fund under the Employees Pension Scheme, 1995, the aforesaid Form shall also contain such particulars as are necessary to comply with the requirements of that scheme.
(3) The employer shall send to the Commissioner within one month of the close of the period of currency, a consolidated Annual Contribution Statement in Form 6-A,showing the total amount of recoveries made during the period of currency from the wages of each member and the total amount contributed by the employer in respect of each such member for the said period. The employer shall maintain on his record duplicate copies of the aforesaid monthly abstract and consolidated annual contribution statement for production at the time of inspection by the Inspector.
Provided that the employer shall send to the Commissioner returns or details as required under sub paragraphs
(2) and (3) above, in electronic format also, in such form and manner as may be specified by the Commissioner.
Employees Provident Fund Scheme, 1952
Chapter:Declaration, Contribution Cards and Returns|
39:Fixation of administration charges:
The Central Government may, in consultation with the Central Board and having regard to the resources of the fund available for meeting its normal administrative expenses, fix the percentage of administrative charges payable under sub-paragraph (1) of Paragraph 38 above.
