During an assignment of audit, i come to know that the audit party has paid admin charges @ 1.61% on basic salary during the year under provident fund obligations along with contribution.
My concern is that, whether this treatment is right or any ceiling limit for calculating admin charges (i.e. 1.61% on basis salary) is there, because i have read some where that it should be calculated by adopting a fixed ceiling limit of wages of rs. 6500 and this treatment done by accountant of my audit party has resulted into huge extra cost to the company.
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