Dear All
I m working with Manufacturing Co. and it is a partnership firm. But now a new partner has come in partnership deed and we are paying him salary, earlier we have not given any salary of other partner. Sir I have a query, can we deduct the pf share from his (new partner) salary or not?
From India, Shimla
11I m working with Manufacturing Co. and it is a partnership firm. But now a new partner has come in partnership deed and we are paying him salary, earlier we have not given any salary of other partner. Sir I have a query, can we deduct the pf share from his (new partner) salary or not?
From India, Shimla
If you are paying him as salary then sure you should deduct PF share of both EE & ER in respective share
From India, Bangalore
From India, Bangalore
Under accounts and income tax act, salary to partners is a part of profit
at best its drawings in anticipation of profits and just a measure of how much profit will go to each partner.
So i dont think you need to deduct PF on partners salary
I dont think it matches the definition of employee under PF act
From India, Mumbai
at best its drawings in anticipation of profits and just a measure of how much profit will go to each partner.
So i dont think you need to deduct PF on partners salary
I dont think it matches the definition of employee under PF act
From India, Mumbai
Partner is not an employee, his salary is taxable under Income from Business/ Profession and even under PF act Partner of a Firm is employer and employee - so no need to deduct PF from Partners Salary.
However same person can be considered as Employer and Employee in PF, e.g. Manager or Salaried Director will be treated as employer and at the same time PF can be deducted from their salary as they are employee.
From India, Calcutta
However same person can be considered as Employer and Employee in PF, e.g. Manager or Salaried Director will be treated as employer and at the same time PF can be deducted from their salary as they are employee.
From India, Calcutta
A partner of the firm cannot be construed as an Employee. However, the partners of an establishment receiving salaries will not be included as Employees for its coverage under EPF & MP Act.
Case Law References:
Prakash D. Shah & Others V/s Union of India, 2003 (Bombay HC)
Om Roller Flour Mills V/s Union of India, 2002 (Calcutta HC)
From India, Mumbai
Case Law References:
Prakash D. Shah & Others V/s Union of India, 2003 (Bombay HC)
Om Roller Flour Mills V/s Union of India, 2002 (Calcutta HC)
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf