Dear Seniors,
I received a notice from EPFO regarding justification required from us that why our member and EPF contribution decreased in year 2015 as compare to year 2014.
What approprate answer we will provide to the department which is justified and withdraw this show cause notice.
In actual all the decreased member resigned by their own and company has not forced them to do so. also we can write to the department the decrease of orders from the buyers.
Seek your valuable advise.
regards
Neeraj Sharma
From India, Gurdaspur
2I received a notice from EPFO regarding justification required from us that why our member and EPF contribution decreased in year 2015 as compare to year 2014.
What approprate answer we will provide to the department which is justified and withdraw this show cause notice.
In actual all the decreased member resigned by their own and company has not forced them to do so. also we can write to the department the decrease of orders from the buyers.
Seek your valuable advise.
regards
Neeraj Sharma
From India, Gurdaspur
Hi Neeraj. You can reply with the same reason and mention the employees left on their won & due to the existing business situation we have not hired anyone as replacement
From India, Bangalore
From India, Bangalore
Dear Mr Neeraj,
Pls. go thru the attached circular of June'14 about the New Inspection Scheme. Since in your case the remittance has decreased, the optional inspection may be done as per the guidelines. You may reply stating the facts that the no of manpower has reduced during the period under comparison which has resulted in the reduced PF/EPF remittance. They may verify all the records & conclude based on the facts.
Regards,
Rajendra Zala
From India, Rajkot
Pls. go thru the attached circular of June'14 about the New Inspection Scheme. Since in your case the remittance has decreased, the optional inspection may be done as per the guidelines. You may reply stating the facts that the no of manpower has reduced during the period under comparison which has resulted in the reduced PF/EPF remittance. They may verify all the records & conclude based on the facts.
Regards,
Rajendra Zala
From India, Rajkot
Mr. Neeraj,
How anyone else not related to your company, can know or suggest you with what reason the management of your company reduced the members and the EPF? That can be known only to the management, if anything placed on record. If not, get information from the concerned departments to make out appropriate justification.
However, about your proposed reply, "In actual all the decreased member resigned by their own and company has not forced them to do so. also we can write to the department the decrease of orders from the buyers, if you take a deep thinking, both the reasons are quite contradictory to each other. On one hand you say the members resigned at their own, but on the other your second proposed reply suggests that the management, itself, reduced the members by retrenchment on reduction in demands for products of the company.
In case the EPFO gets the audited P&L statement of the company verified, how would you like to satisfy the EPFO on that contradiction?
From India, Delhi
How anyone else not related to your company, can know or suggest you with what reason the management of your company reduced the members and the EPF? That can be known only to the management, if anything placed on record. If not, get information from the concerned departments to make out appropriate justification.
However, about your proposed reply, "In actual all the decreased member resigned by their own and company has not forced them to do so. also we can write to the department the decrease of orders from the buyers, if you take a deep thinking, both the reasons are quite contradictory to each other. On one hand you say the members resigned at their own, but on the other your second proposed reply suggests that the management, itself, reduced the members by retrenchment on reduction in demands for products of the company.
In case the EPFO gets the audited P&L statement of the company verified, how would you like to satisfy the EPFO on that contradiction?
From India, Delhi
Neeraj,
PFO will come to know regarding the increase/decrease in PF contributions and number of members from your ECR. They would have found that during the inspection which could have been done due to such a decrease in PF contribution & member number.
However, I am sure you would have furnished all the exiting employees details at the time of the ECR uploading and the same would find it's mention in Part C of your ECR along with the reason under the last column where it is asked.
You can draft a reply against this notice from the PFO stating that the reduction in PF contributions have been due to reduction in number of members which is due to voluntary resignation. Due to the sluggishness in the Market and dull business, our company management has decided to hold the recruitment of these vacancies. Hence, the pf contributions for 2015 have been lower than 2014.
It's likely that the PFC might issue you another notice seeking for further clarification. You can reply on the same line as we have discussed above.
Good Luck,
A.B.
From India, Mumbai
PFO will come to know regarding the increase/decrease in PF contributions and number of members from your ECR. They would have found that during the inspection which could have been done due to such a decrease in PF contribution & member number.
However, I am sure you would have furnished all the exiting employees details at the time of the ECR uploading and the same would find it's mention in Part C of your ECR along with the reason under the last column where it is asked.
You can draft a reply against this notice from the PFO stating that the reduction in PF contributions have been due to reduction in number of members which is due to voluntary resignation. Due to the sluggishness in the Market and dull business, our company management has decided to hold the recruitment of these vacancies. Hence, the pf contributions for 2015 have been lower than 2014.
It's likely that the PFC might issue you another notice seeking for further clarification. You can reply on the same line as we have discussed above.
Good Luck,
A.B.
From India, Mumbai
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PF notice to establishments 28082019.pdf
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