Labour Law consultancy services

The Employees' Provident Fund And Mp Act, 1952 (EPF)

Our Services

1. Preparing and submitting all relevant document for Registration
2. Obtaining the certificate of Registration and PF code from Provident Fund Department
3. Submitting Employees Nomination form with the department
4. Monthly Remittance of Challan
5. Filing of Monthly Return
6. Filing of annual Contribution detail in form 3A & 6A
7. Filing form 19 and 10C for withdrawal
8. Filing of Form 13 for Transfer

FAQ

Which establishment are covered by the Act?

Establishment which is factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed.
Any other establishment employing 20 or more persons which Central Government may, by notification, specify in this behalf.
Any establishment employing even less than 20 persons can be covered voluntarily under section 1(4) of the Act.

What is rate of Contribution?
Employee Provident Fund Employees share -  12%
Employee Provident Fund Employer share - 3.67%
Employees' Pension scheme - 8.33%
Employee Deposit Linked Insurance - 0.5%
Employee Provident Fund Administrative charges - 1.1%
Employee Deposit Linked Insurance Administrative charges - 0.01%

Such rate would be charged on Basic + Dearness Allowance (forming part of retirement benefits)

What are the benefits provided under the Scheme?

The following three kinds of benefits are provided under the scheme: (1) Withdrawal benefit (2) Benefit of non-refundable advances (3) Benefit of financing of Life Insurance Policies.

  • A member can withdraw the full amount standing to his credit in the Fund in the following circumstances immediately
  • Retirement after attaining the age of 55 years
  • Retirement due to incapacity for work
  • Migration for permanent settlement abroad
  • Mass retrenchment
  • Voluntary retirement
  • Closer of establishment
  • Transfer to an establishment not covered under the Act
  • Discharge with payment of retrenchment compensation, etc
  • In all other cases of leaving services he can withdraw the full amount if he remains unemployed after the waiting period of two months unemployment.
  • Non-refundable advances from the amount standing to the credit of a member in the Fund can be sanctioned for the following purposes:
  • Purchase of a house,
  • Repayment of a loan, for housing,
  • Unemployment due to lock-out or temporary closure
  • Unemployment due to illness
  • Marriage of a self of daughter, son, sister or brother
  • Education of son or daughter
  • Exceptional calamity, etc.
What are the Penal Provision under the act?
  • Liable to be arrested without warrants being a cognizable offence.
  • Defaults by employer in paying contributions or inspection/administrative charges attract imprisonment upto 3 years and fines upto Rs. 10,000.00 {Section 14}
  • For any retrospective application, all dues have to be paid by employer with damages upto 100% of arrears.
The Employees' State Insurance Act, 1948 (ESI)

Our Services

  • Preparing and submitting all relevant documents for Registration.
  • Obtaining the certificate of Registration and ESI code from Department.
  • Generating Insurance number to each employee.
  • Monthly Remittance of Challan
  • Filling of Half yearly return.

FAQ

Which establishment are covered by the Act?

  • Section 2(9) 'employee' under ESI means any person who is engaged /employed for wages/salary in connection with the work of the establishment to which this Act applies. But does not include any person whose wages (excluding OT) exceed the limit prescribed by the Central Govt. (which is 15000 pm now with effect from 1 May 2010).
  • Section 2(12) 'establishment/factory' under ESI means any premises whereon 20 or more persons are employed or were employed for wages.
  • If you combine both, you understand that if the total employees are 25 but out of which 14 are drawing gross more than 15000 pm, then only 11 employees come under ESIS and the criteria for 20 employees does not fulfil. Hence on above grounds it is not covered.
  • It has also been extended upon shops, hotels, restaurants, roads motor transport undertakings, equipment maintenance staff in the hospitals.
What are the components included in WAGES FOR ESI CONTRIBUTIONS?
  • Basic pay
  • Dearness Allowance
  • House Rent Allowance
  • City Compensatory Allowance
  • Overtime Wages (but not to be taken into account for determining the coverage of employee)
  • Payment for day of rest
  • Production Incentive
  • Bonus other than statutory bonus
  • Night shift Allowance
  • Heat, Gas & Dust Allowance
  • Payment for unsubstituted holidays
  • Meal / Food Allowance
  • Suspension Allowance
  • Lay off Allowance
  • Children Education Allowance (not being reimbursement for actual tuition fees

What is rate of Contribution?


Employer's contribution - 4.75%
Employee's contribution - 1.75%
What are the benefits provided under the Scheme?

Medical, sickness, extended sickness for certain diseases, dependents maternity, besides funeral expenses, rehabilitation allowance, medical benefit to insured person and his or her spouse.

What are the Penal Provision under the act?

Different punishment have been prescribed for different types of offences in terms of Section 85: (i) (six months imprisonment and fine Rs.5000), (ii) (one year imprisonment and fine), and 85-A: (five years imprisonment and not less to 2 years) and 85-C (2) of the ESI Act, which are self explanatory. Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.

Karnataka Profession Tax (PT)

Which establishment are covered by the Act?

Profession tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976:
Profession Tax shall be paid by every person exercising any Profession or calling or is engaged in any trade or holds any appointment, public or private as specified in the Schedule to the Act.
A person is defined under the Act to mean, any person who is engaged in any Profession, trade, callings or employment in the State of Karnataka and includes :-

  • Hindu undivided family (HUF)
  • Firm
  • Company
  • Corporations
  • Other Corporate bodies
  • Any Society
  • Any Club or Association
  • Every branch of a firm, company, corporation or other corporate body, any society, club or association is treated as separate person for the purpose of tax liability

Are there any Exemption
No tax is payable by persons who have attained age of sixty five years. Also no tax is payable for holding any Profession for less than120 days in that year.

What is the slab rate for Professional tax in Karnataka?
Professional tax in Karnataka on Salary or wage earners whose salary or wage or both, as the case may be, for a month is,

Upto 9999 - NIL
10000 to 14999 – Rs. 150 per month
15000 & above – Rs. 200 per month

What is the Penalty for non-payment of tax?
If an enrolled person or a registered employer fails, without reasonable cause, to make payment of any amount of tax, within the required time or date as specified in the notice of demand, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty equal to ten per cent, of the amount of tax due.

The Karnataka Shops And Commercial Establishment Act, 1961 (S & E)

Which establishment are covered by the Act?
Profession tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976:
Profession Tax shall be paid by every person exercising any Profession or calling or is engaged in any trade or holds any appointment, public or private as specified in the Schedule to the Act.
A person is defined under the Act to mean, any person who is engaged in any Profession, trade, callings or employment in the State of Karnataka and includes :-

  • Hindu undivided family (HUF)
  • Firm
  • Company
  • Corporations
  • Other Corporate bodies
  • Any Society
  • Any Club or Association
  • Every branch of a firm, company, corporation or other corporate body, any society, club or association is treated as separate person for the purpose of tax liability

Are there any Exemption
No tax is payable by persons who have attained age of sixty five years. Also no tax is payable for holding any Profession for less than120 days in that year.

What is the slab rate for Professional tax in Karnataka?
Professional tax in Karnataka on Salary or wage earners whose salary or wage or both, as the case may be, for a month is,

Upto 9999 - NIL
10000 to 14999 – Rs. 150 per month
15000 & above – Rs. 200 per month

What is the Penalty for non-payment of tax?

If an enrolled person or a registered employer fails, without reasonable cause, to make payment of any amount of tax, within the required time or date as specified in the notice of demand, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty equal to ten per cent, of the amount of tax due.