PF

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2010 If A Employee Have Less than 6500/- Basic salary Then Weather He is counted Under Criteria of 20 Person or More.

& If Any Sales Commission is paid Then Also The Commission (Not Fixed) is to Be Include in Rs. 6500/-

G.Ramesh

G.Ramesh (Expert)
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09 September 2010 No......It will not be included....but computed as salary income under income tax

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2010 For Which One Your ans is respected.

i mean -

q.1 - employee salary less than 6500 is counted under criteria of 20 employee or more for applicability of PF to particular establishment.

q.2 - sales not fixed commission, to be include for fulfilling criteria of rs. 6500/-

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Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2010 and for wat abt applicability of ESI.to firm.

G.Ramesh

G.Ramesh (Expert)
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09 September 2010 1. PF Applicable only if a firm is having 20 & above employees (Total Employees 20 Members, not 6500/- or other criteria)

2.Sales commission is a variable...if sales are made commission paid other wise not...hence commission will not be considered for fulfilling criteria

G.Ramesh

G.Ramesh (Expert)
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09 September 2010 Coverage

COVERAGE UNDER THE ESI ACT, 1948

The Act is applicable to the factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .

The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).

G.Ramesh

G.Ramesh (Expert)
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09 September 2010 Implemented or non implemented area to be checked with the ESI Officials based on that area

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2010 if a firm have more than 20 employee, but in that 90% are salried for less than rs. 6500/-

& firm not dedcuted PF at all & not deposited i mean PF no entry.
then what implications are their while auditing.

and " kya kya ho sakta hai"

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 September 2010 It will be reported in the audit, report,if the PF persons visit or inspection the penalty will be levied

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2010 What Will Be Maximum Penalty. acn be levied.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 September 2010 Whoever contravenes or makes default in complying with any provision of this Act or of any condition subject to which exemption was granted under section 17 shall, if no other penalty is elsewhere provided by or under this Act for such contravention or non-compliance, be punishable with imprisonment which may extend to six months, but which shall not be less than one month, and shall also be liable to fine which may extend to five thousand rupees.

G.Ramesh

G.Ramesh (Expert)
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11 September 2010 Agreed with Ramesh Krishnan

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