Maneesh Kumar (B.Com M.Com STUDENT CWA IPCC) (507 Points)
27 February 2012
PLZ HELP ON PF.
MR.X WANT TO WITHDRAWL SOME AMOUNT IN HIS PF A/C .
WHAT IS THE INTEREST RATE ?
THIS AMT. TREATED AS A LOAN , ADVANCE.
MR.X NEED TO REDEPOSIT THIS AMT HIS PF A/C.
WHAT IS THE PROCESS TO TAKE AMT. DURING THE YR FROM PF A/C.?
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 28 February 2012
There is no clarity whether you have a separate Trust exempted u/s 17 of EPF&MP act.
According to your querry it is assumed that you have one such arrangement.
You must have PF Trust rules of your own, as assumed above, which would govern the Loans/advance s disbursement to PF members.
Normally the Rules provide for disbursement of PF Advances(not loan) for specified purposes.
The purposes include disbusement for refundable advances and non-refundable advances.
Non-refundable includes purposes like House-building,marriage of dependent,education of dependent etc,.
Refundable includes purposes like ceremonial functions of respecive custom/tradition,festivals of the religion etc,.
If it is a no-refundable advance,for the specified purposes, the amount would get reduced from subscripttions and contributions as per rules,whereas the refundable one would be recovered from the salary.
The amount of refundable advance has to be shown in a separate account and the recoveries are to adjusted to that a/c. Interest has to recovered on such refundable advances at a rate normally 1% p.a. above the statutory rate(now it is 8.25%) being paid to the members on their accruals.The interest so recovered would become the income of the Trust along with other incomes on ivestment of funds.
Hope it is clarified to some extent.
kkm
Maneesh Kumar
(B.Com M.Com STUDENT CWA IPCC)
(507 Points)
Replied 28 February 2012
THANKS .
NOW CLEAR MY DOUBT.
CAclubindia
