Provident Fund

This query is : Resolved

Srinivas Sharma KN (Querist)
Follow

11 February 2008 One of our client has sent the following questions, please send your advice:

1. We have taken the resposibility of running and maintenance of
Government hospitals under the public-private partnership concept. All
the required staffs are appointed by us and we receive Grant from
Government towards salary and administrative expenses. Do we need to
register under PF Act? If yes, do we need to pay the employers
contribution also along with employee contributions? Can we deduct
employer contribution from employees? We will not be reimbursed from
the Government towards employer contribution, if we pay and also we do
not have any other sources of funds for payment of employer
contribution. Other important point is that their services will be
discontinued once the Government hospitals are handed over back to
Government.

2. Apart from the above staff, there are other staffs who are working
in our NGO in difference projects, do they are also covered under the
PF Act once the registration is taken? All the salary payments are
made out of the budget given by the funding agencies. Once the funds
are utilized or the project in completed, they will not be in the
services of our NGO.

3. We are following cash basis of accounting and paying salary only
when the salary grant is received. The grant may be received monthly
or quarterly etc., Do we need to pay employee and employer
contribution (if applicable) monthly, if the grant is received
quarterly once?

pushpendra

pushpendra (Expert)
Follow

07 March 2008 Dear Srinivas

Really a Good querry, I will love to answer this. but presently i m out to the town. hope in next 2-3 days i will be in my office then i will respond this querry.

Srinivas Sharma KN

Srinivas Sharma KN (Querist)
Follow

10 March 2008 Thank you and expecting your reply

Upgrade to CAclubindia Pro. Subscribe Now!