31 March 2010
A company which was registered with PF and was paying its PF deducted from employees for sometime. After a few years, since no employee's Basic pay is less than Rs 6,500, it stopped deducting PF and so, stopped its own contribution, as well.
Can a Company opt out of PF at this kind of situation though it is registered and was paying before ?
It will be great, if I can get a detailed reply to this.
31 March 2010
Once a company registered under PF then it cannot surrender registration under untill company is doing business. It may possible in future company employ any employee who will have salary less then 6500/- then company will deduct PF. Also PF should be deducted on contractual employees.
01 April 2010
Agree with Ramesh. For an existing member of PF liability of company continues even after salary of existing members exceed 6,500. However the company may restrict his contribution upto Rs. 6500 for an existing member whose salary exceeds the said limit.
CAclubindia
