Pf any changes - reg
Pradeepkumar
(Querist) 14 December 2012
This query is : Resolved
Dear Sir,
Kindly let me know the impact on the latest notification for PF deduction.
If any notification published in gazette of Govt of India.
Raj Kumar Makkad
(Expert) 14 December 2012
Last year, the Madras high court and the Madhya Pradesh high court in two separate cases had held that various allowances paid by the employer to its employees under different heads such as conveyance, education, food concession, medical, special holidays, night shift incentives, city compensatory allowance, etc., qualified as basic wages under section 2(b) of the PF Act and needed to be included while computing the PF contribution.
Based on these judgements, PF officials carried out audits on India Inc and raised demands to recover the differential PF contributions. Later, pending dismissal of the writ petitions filed by these companies, the audits were held in abeyance.
Following this circular, the PF officials may once again, commence audits of Indian companies to ascertain whether the PF contribution has been rightly computed and deposited,
