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sushil khemka (director)     16 June 2011

Elegibility of pF in 2nd unit under sameltd company

sir,we have setup a industries in bihar under public limited company and we were under provident fund and paying  as provident fund and closed in 2007 but in 2006 we have started one more manufacturing unit under same company but in our second unit we were not covered under PF ACT because man power is below 20 person and came under provident fund act in 2008 becouse lmanpower increased from 20 person.My question is that  department is now saying that company wll be covered scince starting just becouse our first unit was covered.pls advice.from 2008 we have no dues or any irregularities ,how can department ask for pf dues after 3 years  from 2006 to 2008 where 80 % manpower hasbeen changed .



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 1 Replies

A K CHANDOK (SELF)     23 June 2011

Dear Sir, since your second unit started in 2006, it was to be treated as a unit coverable under section 2-A of the EPF &MP Act 1952. being a branch of a covered estt.     

   The Deptt. is right to seek compiance u/s 2-A of the Act, irrespective of the fact whether the employment strenght was less than 20 or more.

I will advice to report compliance to avoid further unnecessary damages and interest on belated remittances.

with regards,

Chandok ex RPFC


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