Whether PF is Applicable on some Exp.
Arihant AC
(Querist) 30 December 2008
This query is : Resolved
Respected Experts,
Whether PF is applicable on following heads or not
1. Purchase of Cars, stores, Labour Exp. 2. Free Services Exp.
3. Freight, Octroi & Unloading Exp.
4. Advertise & Sales Promotion
5. Commission Exp.
6. Hospitality Exp.
7. Security Charges.
8. Salary & Wages Exp. (In which we had already paid PF contribution of those Employees whose Salary is under Rs. 6500/- while others are exempted. In this Account Incentive is paid at quaterly & also Bonus & retrachment Salary is also includes).
9. Apprentice Exp.
10. Labour Work done out side Premices (Job Work done out side the premices)
Regards,
NAC
H. S. Thukral
(Expert) 30 December 2008
Your query is not understood properly. PF is payable on the basis of wages and not on the basis of expenses. Kindly go through the EPF Act.
Arihant AC
(Querist) 30 December 2008
Dear Experts,
Let me clear that all these are heads of our Audit Report & EPF Authority has make querry to pay contribution on all this heads. The heads and there exp. are shown as below.
1. Purchase of Cars, stores, Labour Exp. (In which labour Bill are complete out side material purchase & workdone outside premices)
2. Free Services Exp. (This is a Free Service done to New Vehicles & Claims unsettled at Manuf. )
3. Freight, Octroi & Unloading Exp. (This Exp. is for New Car Unloading by Transporter done by them)
4. Advertise & Sales Promotion (The payment made to Press & other Add Maker of Advertising purpose)
5. Commission Exp. ( Paid to Auto Consultant & Big Broker in which TDS is Deduct at prof. Level)
6. Hospitality Exp. (Paid for Hotels Bills & Refreshment made for Company's Inspection done by Manufacturer).
7. Security Charges. ( He is complying under PF from his own PF. No.).
8. Salary & Wages Exp. (In which we had already paid PF contribution of those Employees whose Salary is under Rs. 6500/- while others are exempted. In this Account Incentive is paid at quaterly & also Bonus & retrachment Salary is also includes).
9. Apprentice Exp. ( of whom we had there contract registerd under Apprentice Act)
H. S. Thukral
(Expert) 31 December 2008
There seems to be some misunderstandng. As I said the PF authorities are concerned about payment of contributions as applicable to employees as per current wages paid to them. They donot have any concern with the expenses you incur in running your organisation. Are you sure it is not authorties under Bonus Act and looking for allocable surplus by disallowing certain expenditures?
Hiralal Das
(Expert) 08 April 2009
I do agree with views of our ld. members/friends.
Thanks all of you.
