PF Applicability? - Student Internship with Company

I Yadav (Finance) (34 Points)

04 September 2010  

 

From time to time, our company takes few students in their final MCA and BTech year on six months internship training as part of their degree program. We have letters from the concerned colleges for each individual stating that as part of the MCA /BTech degree the students are required to undergo six months of full-time internship training in a company during the final year of their degree.  Our company pays a stipend of Rs. 6000/- to 6500/- per month to such interns. The  EPF Gurgaon office is insisting that PF is applicable on the stipend being paid to these students.  This does not seems correct.

I request PF experts to please shed more light on the matter.