Deficit in PF Trust
This query is : Resolved
20 August 2009
The rules of the Trust provides that the interest shall be cedited to the members account at a rate as decided by the Board of Trustees but the rate in no case shall be less than the rate notified by the Central Govt. The deficiency shall be made good by the Employer.
The Trust has provided the interest @ 8.5% but the Income of the Trust is not suffient to meet the Interest amount
eg. The Total Interest provided by the Trust is Rs. 100,000
Income of the Trsut is Rs. 60,000
Surplus in the Income & Expenditure A/c b/f from previous year is Rs. 10,000
Now What shall be the liability of the Employer?
Rs. 40,000 (100,000-60,000)
or
Rs. 30,000 (100,000-60,000-10,000)
The rules of the trust are silent on the matter.
The Trust has provided the interest @ 8.5% but the Income of the Trust is not suffient to meet the Interest amount
eg. The Total Interest provided by the Trust is Rs. 100,000
Income of the Trsut is Rs. 60,000
Surplus in the Income & Expenditure A/c b/f from previous year is Rs. 10,000
Now What shall be the liability of the Employer?
Rs. 40,000 (100,000-60,000)
or
Rs. 30,000 (100,000-60,000-10,000)
The rules of the trust are silent on the matter.
21 August 2009
Rs.30000 has to be paid by the employer to the trust.
21 August 2009
Thanks a lot for your reply.
But sir can you please explain why we the libility of the employer is Rs. 30,000 and not Rs. 40,000.
shouldnt we deal on year to year basis?
But sir can you please explain why we the libility of the employer is Rs. 30,000 and not Rs. 40,000.
shouldnt we deal on year to year basis?
20 July 2024
Why Rs. 30,000 and not Rs. 40,000:
The surplus from the previous year (Rs. 10,000) is available to offset part of the current year's shortfall. This reduces the amount that needs to be covered by the Employer.
The liability of the Employer is to make good the deficiency after considering the surplus from the previous year
The surplus from the previous year (Rs. 10,000) is available to offset part of the current year's shortfall. This reduces the amount that needs to be covered by the Employer.
The liability of the Employer is to make good the deficiency after considering the surplus from the previous year
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