ONE OF MY CLIENT (CONSTRUCTION COMPANY) HAS NOT PAID PROVIDENT FUND FOR EMPLOYEES (DEDUCTED BUT NOT REMITTED TO GOVT. IN TIMELY MANNER) SINCE 8 MONTHS FOR THE FINANCIAL YEAR 2011-12 AS A REASON OF NON AVAILABILITY OF FUNDS.
IT HAS A ROAD CONSTRUCTION SITES IN DIFFERENT STATES IN INDIA. NOW THEY WANTS TO PAY PART OF PF AMOUNT FOR ALL THE EMPLOYEES IN HYDERABAD LOCATION(CENTRAL HEAD OFFICE).
MY QUERY IS: 1.CAN IT POSSIBLE TO PAY THE PART AMOUNT OF PF? 2.IS THIS COMPULSORY TO PAY PF INCLUDING EMPLOYER CONTRIBUTION? 3.WHAT ARE THE CONSEQUENCES ARISES IF THEY DEPOSIT ONLY EMPLOYEE CONTRIBUTION?
01 March 2012
THERE ARE TWO CONTRIBUTIONS ONE IS EMPLOYEES CONT AND ANOTHER IS EMPLOYERS CONT SO FAR AS EMPLOYEE CONT IS CONCERNED THE SAME IS ALLOWED AS DEDUCTION UNDER SECTION 36(1)(va) IF THE SAME IS PAID BY THE DUE DATE SP IN THE RELEVANT PF ACT. OTHERWISE THE SAME WILL BE ADDED TO INCOME OF THE ASSESSEE. SO FAR EMPLOYERS CONT IS CONCERNED THE SAME WILL BE ALLOWED TO BE DEDUCTED ON PAID BASIS CA MANOJ GUPTA JODHPUR 09828510543
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