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Applicability of Provident fund

Amit Charnalia (Account Assistant) (40 Points)

11 July 2013

HI All,

Let me introduce myself i am pursuing CA and currently article assistant in CA firm having 8 employees not registered in provident fund, my principle outsourced me as an third party contractor for doing day to day account related work from last 2 years in an multinational company having 350 employees registered in provident fund , Now i came to the question

Is their any liability arise on the multinational company to deposite provident fund for me as CA firm is not registered in Provident Fund.

Thanks

Amit Charnalia

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3 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (4085 Points)
Replied 12 July 2013

All the establishments employing 20 or more persons (5 or more incase of Cinema Theatres) are brought under the purview of the Act from the very date of set up subject to fulfillment of other conditions. The provisions of the Act apply on its own force independently.

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Amit Charnalia (Account Assistant) (40 Points)
Replied 13 July 2013

Dear Sir,

Definition of Employee as per PF Act is as follows

“employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of

1[an establishment], and who gets, his wages directly or indirectly from the employer,

2[and includes any person]-

(i) employed by or through a contractor in or in connection with the work of the establishment;

(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or

under the standing orders of the establishment;]

So if we see as per above definition liability arise on the company to deposite PF on me is it right

Thanks

Amit

Anil Sharma (Accountant) (21 Points)
Replied 06 October 2013

Please note that you are the articled clerk of CA Firm and not of the Multinational Company secondly there seems to be contract with your principal and not with you. You are simply representing your firm. Hence company is not liable to deduct PF on you.