A restaurant was started in the year 1977 as a properitery business. A similar restaurant was started in the year 1985 at another place as a partnership venture between the properiter of the earlier firm and his wife. After 27 years the partnership was firm was shifted to the first floor of the properitery firm in 2013.Both the firms have seperate PAN no.,TIN no., Corporation License,Labour License, Food safety license, bank accounts,EB meters,and have been filing their retuns seperately. The properitery firm employs 12 persons and the partnership firm employs 9 persons and all of them receive more than 6500/-(basic plus dearness allowance) per month. Recently, the EPFO Enforcement Officer visited the premise and advised that the geographical proximity of both the firms will be taken into account and as there are more than 20 employees in both the firms put together, we should get registered under EPFO mentioning the geographical proximity.
1.Is his advice correct?
2.If we register one firm as advised, how do we file returns for both the firms and segregate the accounts?
3.He uses the words geographical proximity and financial proximity. What do they mean under EPFO Act/
Please, help us with clarification.
Gunapalan
