COMPLIANCE NEWS @ MYND: State update from Andhra Pradesh

                                          Compliance Update from Andhra Pradesh

We are forwarding herewith  a copy of notification along with a copy of order  bearing  G.O.MS.No. 18 dated  16 June , 2015, In exercise of the powers conferred under sub-section (4) of section-73 of the Andhra Pradesh Shops & Establishments Act, 1988 (Andhra Pradesh Act No.20 of 1988), the Government of Telangana hereby permit all the Shops & Establishments as defined in section 2 (21) of Andhra Pradesh Shops & Establishments Act, 1988 to keep open on all 365 days of the year in Telangana State for a period of one (1) year only, subject to the following conditions:-

  

(i)  The working hours of the employees shall be 8 hours per day and 48 hours in a week. Record of over time will be maintained in the Wages Register separately in respect of the employees who worked beyond normal working hours. 

(ii) Every employee will be allowed to avail a Weekly Holiday as per the list exhibited (form 24) at the main entrance of the shop on rotation basis. 

(iii) If the employees are found working on any Holiday or after normal duty hours without proper indent of Over Time, the exemption granted will be liable for cancellation.  

(iv) Working hours of the shop shall be between 9.00 A.M. to 11.00 P.M. 

(v) In case of Women employees who are required to work beyond 8:30 P.M., transport arrangements will be provided to the women employees. A notice to this effect in Telugu and English will be exhibited at the main entrance of the shop indicating the availability of transport.  

(vi) All employees will be provided with Appointment Letters and copy of the same will be furnished to the jurisdiction inspector and acknowledgement will be preserved in the shop for inspection at any time.  

(P.T.O.) 

 (vii) Visit Book will be maintained exhibiting a copy of the exemption for verification by the inspector for compliance with the conditions on exemption. 

(viii)The exemption will be valid for one (1) year only and subject to compliance with the conditions of exemption and also compliance with the welfare provisions applicable under various Labour Laws and renewal will be considered. 

(ix) The wages for the employees will be credited to their saving bank account. 

(x) EPF & ESI deductions shall be implemented in respect of the eligible employees. 

(xi) The Employer shall cooperate in implementing the “Duties of Inspection” under Rule 28 of the A.P. Shops & Establishments Rules, 1990 especially with regard to the implementation of the conditions and also the provisions of other Labour Laws for the workers employed in their shops. 

(xii) If any statutory violation is detected from the Employer of the Shop, the exemption will be cancelled before the sanction period. 

(xiii) The exemption will be remain in operation for a period of one (1) year from the date of publication of notification in the official Gazette unless it is revoked.

COMPLIANCE NEWS @ Mynd: Mandatory deposit of contribution through Internet Banking

We are forwarding herewith a copy of circular bearing  No. Bkg. 1(4)2010/Online Remittance/12871 dated 24^th June, 2015 from the Head office of the Employee Provident Fund Organization , New Delhi along with the copy of the order bearing No Bkg. 1(4)2010/Online Remittance/12870 dated 24^th June issued by the Central Provident Fund Commissioner New Delhi in exercise of the powers conferred by section 5 read with sub-section of (1) of section  7 of the EPF&MP Act 1952 has notified amendments in Parts 38(1) and 48 of EPF Scheme, 1952, making it mandatory for employers to pay the statutory contributions through internet banking.

It has also stated that an employer who makes payment of less than Rs. 1 lakh in a particular month as contribution under EPF & MP Act, 1952, and scheme framed thereunder , shall have option to make such payments through physical mode of payment  (bank drafts or bankers cheques or cheques) for transitory period is being considered at appropriate level.

Note: The employers remitting contribution below Rs. 1 lakh per month shall, however, have the option to remit such dues through the internet banking even during the interim period upto September, 2015.

The aforesaid order makes the employer of the establishment covered under the EPF & MP Act, 1952, to comply with the requirements as laid down in the said order. 

http://www.myndsolution.com/

COMPLIANCE NEWS: Submission of Form 11 (new) and seeding KYC details in UAN Portal

We are forwarding herewith a copy of circular dated No. Coord /40(24)2010/DPG Review Meeting/11388 dated 22nd June, 2015 from the Head office of the Employee Provident Fund Organization , New Delhi along with the copy of the order bearing No. Coord /40(24)2010/DPG Review Meeting/11387 issued by the Central Provident Fund Commissioner New Delhi in exercise of the powers conferred on him under para 78(3) of the Employees Provident Fund Scheme, 1952

The gist of the order is also attached herewith for your information and for taking further necessary action in the matter.

The aforesaid order makes the employer of the establishment covered under the EPF& MP Act, 1952, to comply with the requirements as laid down in the saidorder. 

http://www.myndsolution.com/statutory-compliances.html

Compliance News @ Mynd: Amendment in Section-192 A of the IT Act

Please find below the summary of the circular detailing the amendments issued by office of the Central Provident Fund Commissioner on applicability of changes in Finance Act 2015 ( insertion of section 192A regarding the taxation on withdrawal of PF Accumulations). Provisions of the said circular shall take effect from 1^st June 2015. The gist of the circular is being given here under-:

1.   Hither to fore no income tax was deducted on the PF accumulations refunded by the PF authorities on the members leaving employment of their employers.

2.   

      Consequent upon amendments carried out through the Finance Act 2015, effective from 1^st June 2015, Income tax will be deducted by the PF Authorities at the time of payment of PF accumulations to the members in the following cases-;

    Where the payment of accumulated PF balance is more than or equal to Rs. 30,000/-, with service less than five years TDS will be deducted  @ 10% provided PAN is submitted but where the members fails to submit the PAN the TDS will be deducted @ maximum marginal rate i.e. 34.608%.

3.    TDS shall not be deducted in the following cases-:

·    Transfer of PF from one account to another PF account.

·    Termination of service due to ill health of member, discontinuation/contraction of business by employer, completion of project or other cause beyond the control of the member.

·   If employee withdraws PF after a period of 5 years of continuous service , including service with former employer.

·     If PF payment is less than Rs 30,000/- but the member has rendered service of less than 5 years.

·    If employee withdraws amount more than or equal to Rs. 30, 000/-, with service less than 5 years but submits Form 15G/15H along with their PAN.

·     Form 15G and 15H may not be accepted if amount of withdrawal individual and senior citizen (60 years and above) is Rs. 2, 50,000/- and Rs. 3,00,000/- respectively. For format for Form 15G/15 H please refer attached document.

 Form 15H is for senior citizens ( 60 and above) while Form 15 G is for individuals having no taxable income.

Note: The provisions of the circular will not apply to PF Trust of relaxed/exempted establishments to whom provisions as contended Rule 8 ,fourth schedule, Part A- Recognised Provident Funds shall continue to apply.(Extracts already enclosed with the attached circular ).

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Reduction in rate of Admin Charges on PF/EDLI contributions

We are forwarding herewith copies of two Notifications bearing  No. S.O.323(E) dated 2nd February, 2015 and 324 (E) dated  2nd February, 2015 issued by Government of India, Ministry of Labour and Employment New Delhi.

Note:  The above mentioned two notifications relate to un- exempted establishments i.e. establishment to which EPF Scheme , 1952 applies. These notifications do not apply to exempted/relaxed establishments which are required to pay inspection charges in place of administrative charges. Similarly notification relating to payment of administrative charges on EDLI contribution apply to only such establishment which report compliance of EDLI , Scheme, 1956 to RPFC concerned. In other words the said notification does not apply to those who subscribe to group insurance policy obtained from an approved insurer.

The following table shows the changes brought about through these notifications:

A. Notifications bearing  No. S.O.323 (E) dated 2nd February, 2015, effective from 1st January 2015
Sr. No	Existing Provisions	Revised Provision	Impact
(i)	The rate of administrative charges payable under para 38 of the EPF Scheme,1952 at present is @1.10% of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon	This rate has now been reduced to 0.85% of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon)	Thus , as a result of the issue of present notification, the liability of an employer towards payment of such administrative charges shall stand reduced  except in cases of smaller establishments who were required to pay the administrative charges @ 1.10% of pay of the members employed by them amounting to rupees less than Rs. 75/-  per month in case of non-functioning establishment  having no contributing member and Rs. 500/- per month per establishment for other establishments.
(ii)	No minimum amount was prescribed for payment of such charges	A minimum sum of Rs. 75/-  per month for every non-functional establishment having no contributory member and Rs. 500/- per month per establishment  for other establishments.
B. Notifications bearing  No. S.O. 324 (E) dated  2nd February, 2015 ,effective from 1st January 2015
Sr. No	Existing Provisions	Revised Provision	Impact
(I)	The rate of payment of administrative charges  on EDLI contribution was prescribed @ 0.01%  of aggregate of the basic wages , dearness allowance(including cash value of food concession ) and retaining allowance  if any payable by the employer in relation to his employees	This rate remains the same	The liability of the employer towards payment of such charges has now gone up in cases of establishments who were paying such charges amounting to less than Rs. 25 per month in case of non-functional establishments having no contributory members and less than Rs. 200 per month per establishment in case of other establishments.
(ii)	The minimum amount payable towards such charges was fixed earlier as Rs.2/- per month vide  notification No . S.O 237 dated 11th Jan 1989	This minimum amount has now  been enhanced to Rs 25 per month for every non-functional establishment having no contributory member and Rs. 200 per month per establishment for other establishments

Statutory Compliance Update: Mandatory filing of Return in Form 5 A

Please find enclosed herewith copy of circular dated  February 25, 2015 from Employees' Provident Fund Organisation with regards to mandatory filing of  return in form 5 A by the Employers of the establishment covered under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952.
 The Employees' Provident Fund Organisation has instructed all the employers to file a return online stating ownership in Form 5A showing the particulars of all the branches and departments owners, occupiers, directors, partners, manager or any other person or persons who have the ultimate control over the affairs of such factory or establishment.
 Note :  The deadline for  filing of return in Form 5 A is fixed as 31^st March , 2015.  Failure to make compliance would attract 'penalty' as stipulated by section 14 of the Employees' Provident Funds & MiscellaneousProvisions Act