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Ajay Agarwal (Executive)     07 June 2012

Pf notice treating total salary as basic

Dear Seniors,

Our manufacturing unit ( Hyderabad based ) crossed 20 workers in last year and we started paying PF on basic. We kept basic as 25 % of total salary. 

Now we received a notice from PF Office, Hyderabad demanding Rs. 1,85,000/- . for year 2011-2012.  They calculated PF on total salary and not on only basic. 

In this case, what should we do ? Should we go for appeal or not ? If yes, then which court will have jurisdiction. One consultant told that we need to appeal in Delhi.



Learning

 5 Replies

A K CHANDOK (SELF)     09 June 2012

Dear Mr. Ajay,

As per provisions under the Act, You can file Review application u/s 7-B with in 45 days if any new facts are given which were earlier not submitted during 7-A proceedings. Generally these are not accepted.

Other statutory remedy is to file an appeal u/s 7-I of the Act before the EPF Appellate Tribunal at Delhi with in 60 days of receipt of 7-A orders ,WITH FURTHER EXTENSION OF 60 days with sufficient reasons for dealy and with reqyest for condonation of delay.

For further advice or filing of Appeal in EPF Appellate Tribunal, you may contact me after viewing my website --www.akchandok.com or by e-mail at chandokak@yahoo.co.in  You may contact me on phone at 09988021715

Dr.A.K.CHANDOK, Advocate

Regional P.F. Commissioner (RETIRED)

Ajay Agarwal (Executive)     09 June 2012

Dear Dr. Chandok,

Thanks for your reply. What are the chances of winning in tribunal? It is clear that EPFO adopt different yard stick for different employers. There are many employers in India, who show 20 to 60% of gross salary ( where gross salary is Rs.5000 to 6500 ) as basic and pay PF on basic only.  EPFO officers happily accept that.

Can they discriminate this way ? 

A K CHANDOK (SELF)     09 June 2012

Pl. send the copy of 7-A orders for clarity of facts.

Ajay Agarwal (Executive)     09 June 2012

Dear Dr. Chandok,

Sending scanned copy to you by email. It will be sent by Mr. Vikash, Hyderabad.

Ajay Agarwal (Executive)     10 June 2012

We wish to file an application under sec 7B. Which of the following points should be covered ?

(1) many of the employees no more working with us and untraceable. Department cannot give them any benefit so demand should be dropped / reduced.

(2) our existing employees want minimum deduction and they can give it in writing. should we add their representation ?

 


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