Académique Documents
Professionnel Documents
Culture Documents
Presented By:
RSPH & Associates
CA Hitesh Agrawal
Baroda.
(O) 02652342932/33 (M) 9998028737
(A)
Contract Labour (Regulation
& Abolition) Act, 1970
The main objective of this act is to regulate
the contract labour and abolish it in certain
cases.
Applicability
Every industry engaging 20 or more
workers on contract basis.
Every contractor engaging 20 or more
workers.
Form XII
Obligation of Contractor
Renewal of license Form VII
Register of workman
Form XIII
Employment Card Form XIV
Service Certificate Form XV
Muster Roll Form XVI
Wages register
Form XVII
Wage slip
Form XIX
Contd
Deduction for damage/loss
Form XX
Register of fines
Form XXI
Register of advances
Form XXII
Register of over-time
Form XXIII
Half yearly return Form XXIV
Notice of Commencement
Form VI A /Completion
Welfare Facilities
Canteen
Rest rooms
Urinals, Latrines
Drinking Facilities
First Aid Facilities
Section 16
Section 17
Section 18
Section 19
Contd.
IV)Payment of Bonus Act, 1965
V) Minimum Wages Act, 1948
VI)Payment of Wages Act, 1936
SAP System
Payment of Wages
Bills of the contractor of Labour Supply is
passed on the basis of the entry in SAP.
Payment to the contract labour is disbursed
in Contractor Yard.
Payment to the contract labour is disbursed
before the management representative
Representative stamps the register & signs
on it.
(B)
The Employee's Provident
Fund Act, 1952
Nothing but Social Security to
Employees
Introduction
Salary consists of two parts i.e. earnings &
deductions
Provident Fund is one of the statutory deduction done
by the employer at the time of salary payment
Provident Fund is governed by the Employees
Provident Fund Act 1952
Statutory
Contribution Rate
.
Account Number
Account Number Contribution Type
Contribution Rate
Employees PF
12% + 3.67%
1.1%
10
Employees Pension
Scheme
21
22
0.01%
TOTAL..
25.61%
Compliances.
Annual Returns
Employer shall send to the Commissioner
within one month of the close of the year, a
consolidated Annual Contribution Statement
(Form-6A) and individual employee sheet
(Form-3A) showing the contributions made by
the employees and employer during the year
( PF Year is March to Feb)
List of Forms
Forms For Claiming Benefits Under PF Scheme
Form
Purpose
13
For transferring the PF A/c of a member from one establishment
(revised) to another establishment covered under the Act / Scheme
14
19
20
31
List of Forms
Forms For Claiming Benefits Under Pension Scheme
Form
Purpose
10 C
10 D
27
List of Forms
Forms For Claiming Benefits Under EDLI Scheme
Form
Purpose
5 (I.F.)
28
Summary
Form
Purpose
Nomination Form
Return of Employees qualifying for membership to the Employees' Provident Fund for
the first time during every month. Within 15 Days of the following month.
10
12A
Consolidated Statement of dues and remittance By 25th of the following month to which the
dues relate.
3A
6A
29
30
Accounting of PF Contribution
Suppose total gross salary payable for the month of
January 2010 is Rs. 3,00,000
Out of above, basic salary which is eligible for Provident
Fund contribution is Rs. 2,00,000
Hence, the Employee Provident Fund contribution will be
calculated @12% of basic salary i.e. Rs. 24,000.00
Net salary payable to Employee is Rs. 3,00,000
Rs.24,000 = Rs. 2,76,000.00
The entry for above transaction will be made accordingly
Journal Entry
Dr. Employer PF Contribution Rs.24,000
Dr. PF administration Fees Rs. 2200
Dr. Employee EDLI Rs. 1,000
Cr. Employers PF payable Rs. 27,200
Now total PF payable will be Rs. 24,000+
Rs. 27,200 =Rs, 51,200 which you should
pay to PF department through its challan
(C )
Employees State Insurance Corporation
Employees - Benefits
Under ESI Scheme, the comprehensive and need based
package of Social Security Benefits in Cash and kind
include the following:
1) Medical Benefit
2) Sickness Benefit
3) Maternity Benefit
4) Disablement Benefit
5) Dependent Benefit
6) Funeral Benefit ( Upto Rs.10000/-)
ESIC Rates
PROFESSIONAL TAX..
Employer carrying out any business/Profession
No limit on No. of Employees (Even employer
employing only 1 employee then also he is liable)
Due date of payment is 15th of Next Month for
Employees share
Due date of payment for Employers share is 30th
September ( For F.Y.2011-12 due date was
30/09/2011)
Salary Register ,Salary Slip, Appointment Letter
to be maintained
Salary Slab
PT Rate
0-2999
Nil
3000-5999
20
6000-8999
80
9000-11999
150
200
Employers Share of PT
Sr.No.
Type of Person
Rate (Rs.)
500
1250
2400
2000
-:SUMMARY
OF REGSITERS & RECORDS
TOto
BEbe
MAINTAINED:Sr.N
Act
Documents
maintained
o.
1
Factories Act
a. Accident Register with Forms
b. Inspection Book
c. Muster Roll & Wage Register
d. Muster Roll for Exempted workers
e. Register of Adult Workers
f. Register of Compensatory holidays &
Overtime
g. Register of Leaves with wages
2
EPF & MP Act, 1952
a. Register of Contribution
b. Inspection book
3
ESI Act
a. Accident Register
b. Register of Contribution
c. Inspection Book
4
Payment of Wages
a. Register of Fines, Deduction &
Act,1936
Advances
5
Minimum Wages Act,1948 a. Wage Slip
6
Payment of bonus
a. Register A,B & C
Act,1965
7
Equal Remuneration
a. Register in Form D
Act,1976
8
Contract Labour (R&A)
a. Register in Form 13
Accountants Role
Maintain Records in good condition ( As there is no provision for how
many years books should be maintained)
Adhere to Statutory Due dates ( As missing payment due dates will
lead to penalty/interest on unpaid amount & will lead to chances of
disallowance under Income Tax Provisions)
Provide data to consultant well before time
Reconcile statutory deductions employee wise & total monthly salary
wise.
Get salary records audited from PF/ESIC Department once every five
years
If company has its own PF trust then get trust accounts audited with
Chartered Accountant & submit it to PF department( Rotation of CA
with every 3 years)
Accountants Role
Dos if company employing Labour Contractor:a. Work Order should be issued to the Contractor (
Before issuing work order copy of all statutory
licenses like PF/ESIC should be kept on record)
b. Take Copy of Labour License before start working
with contract labour
Accountants Role
c. Ensure Attendance register & Salary Register with
salary slip of Contract labourer available with the
company (Minimum wages to be paid )
d. Take copies of PF/ESIC paid challans from
Contractor & preserve them for future
departmental Audit ( As a principle employer if
contractor does not pay then company will be
liable)
e. Maintain Labour License Expiry register of all
contractor working in the company to avoid legal
obligations on organization
Accountants Role
Dos Before Finalization of Accounts at periodic interval:a) Salary as per Financial Statement = salary as per PF/ESIC
records
b) Match all statutory payments made with financial records
c) Ensure Year end outstanding payment is matching with
contribution paid in April
d) Ensure proper deduction of TDS of employees.
..THANK YOU..