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PF contribution in 3CD

Shaily Jain (Chartered Accountants) (1054 Points)

04 July 2011

For the purpose of Tax Audit (clause 16 b) will admin charges included in PF cont. by employer?

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7 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 04 July 2011

yes its to be included.

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Kshitij (Consultant) (62 Points)
Replied 04 July 2011

yes it has to be included...

Shaily Jain (Chartered Accountants) (1054 Points)
Replied 04 July 2011

Is it written somewhere? in notification or circular? In guidance notes of Tax audit it is not mentioned.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 04 July 2011

whole the sum paid to PF towards contribution to PF including EDLI/admin charges are allowable expenses in hands of employer.

None (student) (209 Points)
Replied 04 July 2011

READ MINUTELY CLAUSE 16(b) :- IT ONLY RELATES TO EMPLOYEES' CONTRIBUTION.....SO NO QUESTION OF INCLUSION OF ADMIN CHARGES........

FOR YOUR QUERY , YES ADMIN CHARGES WILL BE INCUDED IN PF CONTRIBUTION OF EMPLOYER AND IT WILL BE SEPARATELY DEALT WITH IN CLAUSE - 21

FOR MORE CLARITY , DOWNLOAD THE ATTACHED FILE WHICH CONTAINS THE SUMMERY OF ALL 32 CLAUSES WITH IMPORTANT POINTS.............

Attached File : 554775 758812 clausewise checklist for form 3cd.xls downloaded: 935 times

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Shaily Jain (Chartered Accountants) (1054 Points)
Replied 05 July 2011

Thanks for everyone...even i agree that it should be included but again it is not written specifcally... even in clause 21 which deals only for Sec. 43 B which says employer contribution to PF, Gratuity or any other fund for the welfare of employees.. now argue is that admin charges is the exp but not for the welfare of the employess.. employee will nt get these expenses...n so many thanks to Mr. Khan for checklist also

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 05 July 2011

its the admin charges for the fund, which is for welfare of employees, and employer is not getting any benefit either nor its penalty for him, so its part of contribution.