ADP India being one of the best payroll outsourcing company often produces newsletters to help retailers... For further information visit www.adp.in

1. STRICTLY STATUTES
A Newsletter from ADP India
SEPTEMBER
2013
TABLE OF CONTENTS
EDITOR’S NOTE
Pages
Hello Readers,
The month of August 2013 saw some
developments in the EPF and Gratuity space.
interesting
The EPFO is lately becoming tougher with defaulting
employers for not remitting the PF contribution. As part of this
recent development, the EPFOs official website listed the
names of top defaulting employers, in an effort to warn them
and has asked the exempted EPF trusts to send their
pending income tax proposals by November.
We appreciate these moves by the EPFO, as it is in the
positive direction of ensuring that the employers do not cheat
their employees of their benefits. Also, publishing the list is a
good move that will help to create awareness among the
employees and general public and dissuade the employers
from future defaults.
In two separate judgements, our High Courts have
re-affirmed the rights of employees with regard to Gratuity
settlement, directing the employers to include travelling
allowance for calculation of Gratuity and pay the employee
with interest for the delayed settlement. These benchmark
judgments we hope would now help to clear a lot of long
pending petitions and ensure justice, to many petitioners,
across the country.
This issue covers these developments in detail, along with
other interesting information in the statutory compliance
space. We hope you enjoy reading this issue and find it
useful.
Please do share your inputs / suggestions and help us to
enrich the newsletter content. You may write to us at
contactadp@adp.com
Regards,
Editor
Compliance calendar for
Aug 13 (Time line for Sep
13)…
02
An insight into PF Trusts
pending approval…
03
Certificate of Coverage
(COC) to be issued by
Regional / Sub-regional
PF Offices…
04
Employer’s Share of EPF
Contribution can be
reduced to Rs. 6500/…
05
Delayed payment of
Gratuity will attract
Interest...
05
Travelling Allowance is
Included for calculation of
Gratuity…
06

2. Page 02
STRICTLY STATUTES
A Newsletter from ADP India
Compliance Calendar for September 2013
Due Date
Scope
Due Under
Mode
Professional Tax Remittances
10th Sep 13
Andhra Pradesh & Madhya Pradesh
State-wise regulations
By Challan
15th Sep13
Tamil Nadu
State-wise regulations
By Challan
15th Sep13
Gujarat
Gujarat PT regulations
By Challan
20th Sep 13
Karnataka
Karnataka PT regulations
By Challan
21st Sep 13
West Bengal
WB PT regulations
By Challan
30th Aug 13
Sep
Maharashtra, Assam & Orissa
State-wise regulations
State Wise regulations
By Challan
Kerala
Kerala State Labour
Welfare Fund
By Challan
15th Sep 13
Central - Remittance of Contribution
EPF & MP Act 1952
By Challan
15th Sep 13
Central - International worker with wages
and nationality
EPF & MP Act 1952
Statement in IW1
Main Code & Sub Codes - Remittance of
Contribution
ESIC Act 1948
By Challan
Labour Welfare Fund Remittances
20th Sep 13
PF
ESI
21st Sep 13

3. Page 03
STRICTLY STATUTES
Flash News
An insight
into PF
Trusts
pending
approval
A Newsletter from ADP India
Through a web circulation No. C-II/MISC/02/06/EX/EZ/Vol-I/9360,
dated 16th Aug 2013, the Employees Provident Fund Organisation
(EPFO) asked 295 exempted private provident fund trusts to send
their pending income tax exemption proposals by November. All
these trusts had been exempted on a ‘deemed’ basis so far. And,
these may get approval if, among other reasons, they have been
regular with submission of provident fund money deducted from
their employees’ salaries.
The EPFO website has a list of the top 50 defaulters. Many
companies, which deduct contribution towards PF from their
employees’ salaries, do not deposit the amount with their trust or
with EPFO. These companies continue this for years at length,
while most employees aren't aware of it.
EPFO has now said that, if a company is found to be
non-compliant with its PF deposits, it will not only have to pay the
dues, but also pay interest and penalty on the same, depending
on the number of days payment delayed.
This move from EPFO will encourage employers to deposit the
contributions in time, thus protecting employees from defaulting
employers.

4. Page 04
STRICTLY STATUTES
A Newsletter from ADP India
Certificate of Coverage (COC) to be issued by Regional / Sub-regional PF Offices
Through a Circular No. IWU/7(15)2011Gen(Software), dated 13th Aug 2013, the Employees Provident Fund
Organisation (EPFO) gave consolidated guide lines for issuing Certificate of Coverage (COC); whereby it is
conveyed that from 15th Aug 2013 onwards, the COCs will be issued by the Regional/Sub Regional PF offices, in
whose jurisdiction, a particular establishment in which the eligible member is employed, is covered.
In this context, the process flow for issuing COCs is reiterated as below:
All applications for COCs will be received and be acknowledged
by the inward section and entered into a separate register.
All Applications received by the inward section will be forwarded
directly to the Regional Commissioner (FA)/OIC as the case may
be. Entry of these applications will be made in a separate
register by the PA to Regional Commissioner (FA)/OIC and the
application will be sent to the concerned sections for
verifications of details of the employee and the signature of the
employer.
After verification, the concerned section will return the
application to PA to Regional Commissioner (FA)/OIC, to be
forwarded to the EDP cell for data entry.
Verification of data in the system through the application
software will be done by the Accounts Officer designated for this
purpose.
After verification of data, fair copies of the COCs will be printed
and the hard copy will be signed by the Regional Commissioner
(FA)/OIC.
Signed COCs will be dispatched through speed post to the
employer, to be handed over to the applicable employee.
COCs for of non-PF employees like the Bank employees etc, are
also issued by the EPFOs. However, such COCs will be issued on
receipt of Rs. 10000/-, through a bank draft, payable to EPFO;
and the same will be accounted in Account No.2 (Admin Account)
of the respective RO/SRO.
COCs can also be issued for the retrospective periods, if
compliance in respect of the member has been received by the
office.
Certificate of Coverage (COC)
exempts a citizen of a country
from contributing to the Social
Security Systems of the foreign
country where he is employed.
This exemption is applicable
only if there is a Social Service
Agreement (SSA) signed
between the employee’s home
country and the country of his /
her work. The list of SSA
signed countries with India is
available in the foreign
ministry website and can be
accessed at
http://www.moia.gov.in/services
.aspx?ID1=285&id=m4&idp=81&
mainid=73

5. Page 05
STRICTLY STATUTES
SIGNIFICANT RECENT JUDGMENTS
EMPLOYER’S SHARE OF EPF
CONTRIBUTION CAN BE REDUCED
TO RS. 6500/In a recent judgment (L.P.A. No. 293/2013 in SCA no.
3191/1995, D/-18-3-2013), Gujarat High Court has
pronounced that the employer’s share of EPF
contribution can be reduced to Rs. 6500/-. According
to this ruling, which was given in the case of Jamnagar
Rajkot Gramin Bank Officers’ Association (now
Saurash &1) vs. Saurashtra Gramin Bank through
Chairman & 1, now an employee may be allowed to
contribute on more than the statutory limit of Rs. 6,500
per month. And the employer’s obligation is only to pay
administrative charges.
DELAYED PAYMENT OF GRATUITY
WILL ATTRACT INTEREST
A Newsletter from ADP India
Now, the employer is not prohibited for reduction of
contribution on the amount exceeding Rs. 6,500
/month to mandatory stipulation of Rs. 6500/month,
as decided by Supreme Court (in the Case of
Committee for Protection of Rights of ONGC
employees & others vs. ONGC, Dehradun & others,
1990 (20 SCC 272) .
Until the action taken by the management is not
violative of any statutory provision, settlement or
agreement, any change in service condition by the
employer, cannot be considered under Article 226 of
our Constitution. And reduction of contribution by the
employer, to the mandatory stipulation of Rs. 6500 per
month is not violative of section 9A of the Industrial
Disputes Act 1947.
In another judgment in the case(W.P.(C) Nos. 159,280
and 281/2012, D/-13-3-2013) between Babul Ranjan
Singha, S/o Late Rash Mohan Singha, Tripura vs.
Tripura Road Transport Corporation & Ors., Gauhati
High Court has ruled that the stringency of fund would
not absolve the employer from its liability to the
delayed payment of gratuity that is legally due to the
employee.
The Court observed that the delay in payment of
Gratuity, on the part of the employer, would attract a
penal interest as provided under section 7 (3A) of the
Payment of Gratuity Act 1972. The Court directed the
employer to pay the employee the Gratuity that is due,
with interest @ of 6% per annum, from the date of
retirement within 4 months and further delayed
beyond 4 months warranting an interest of 8% per
annum

6. Page 06
STRICTLY STATUTES
TRAVELLING ALLOWANCE IS INCLUDED FOR
CALCULATION OF GRATUITY
A Newsletter from ADP India
the High Court challenging the orders of the
lower authorities, which was dismissed by a
single learned judge. The employer again filed a
Letters Patent Appeal (LPA) before two judges of
same High Court against judgment of the single
judge.
Judgment: But the division bench consisting of
Hon’ble Mr. S. Jayant Patel, J. and Hon’ble Mr.
Mohinder Pal, J dismissed the appeal by the
employer. The bench held that the employee is
entitled for Gratuity with interest, since the date of
his retirement. They also held that the lump sum
compensation, in lieu of reinstatement awarded
by the Labour Court, would not debar the
employee from getting Gratuity, as per the
provisions of the Payment of Gratuity Act 1952.
In a case (L.P.A. No. 529/2012 in SCA No. 830/2012,
D/-16-4-2013) of R. M Engineering Works vs.
Kushalbhai Manilal Chavda & 2 Ors., the Gujarat
High Court has ruled that the travelling allowance
is included for calculation of Gratuity.
Case History: The employer’s version of the case
is that the employee retired from 15.11.2000,
whereas the employee stated that he has not
reached the age of super annulation on 15.11,
2000, hence an Industrial dispute was raised. In
the meantime employer/appellant closed the firm,
and the Labour Court awarded Rs. 50,000 as lump
sum compensation towards reinstatement.
Thereafter, the employee filed an application
under the Payment of Gratuity Act claiming
Gratuity and the appeal filed by the employer was
dismissed by the Appellate Authority. Employer
then filed a Special Civil Application (SCA) before
The bench further held, that according to Section
2(s) of Payment of Gratuity Act, 1972 – Wages
include travelling allowance for calculation of
Gratuity, hence it cannot be excluded while
calculating wages for payment of Gratuity. The
ruling also stated that the liability to pay interest,
as per provisions of the Payment of the Gratuity
Act, 1972, on the amount of Gratuity, delayed by
the employer, accrues from the date of when the
employee is made to retire and not from the date
of lump sum compensation is awarded by the
Labour Court.

7. Page 07
STRICTLY STATUTES
ADP Global
A Newsletter from ADP India
ADP India
With more than $11 billion in revenues and more than
60 years of experience, ADP® (NASDAQ: ADP)
serves approximately 620,000 clients in more than
125 countries. As one of the world's largest providers
of business outsourcing and human capital
management solutions, ADP offers a wide range of
human resource, payroll, talent management, tax and
benefits administration solutions from a single source,
and helps clients comply with regulatory and
legislative changes, such as the Affordable Care Act
(ACA). ADP's easy-to-use solutions for employers
provide superior value to companies of all types and
sizes. ADP is also a leading provider of integrated
computing solutions to auto, truck, motorcycle,
marine, recreational vehicle, and heavy equipment
dealers throughout the world.
ADP India has enabled several companies across the
country, irrespective of their nature, size and
requirements, take advantage of its business
processing solutions to meet their business goals,
especially in the HCM Arena. By offering best-in-class
software and services, which reflects the company’s
continual efforts in R&D that span several years, ADP
empowers people and organizations to innovate,
increase HR operational efficiency, meet regulatory
and legislative requirements , find opportunities to
reduce cost and increase profits, and stay ahead of
competition.
The Company offers a wide range of human resource,
payroll, tax and statutory compliance solutions both
as Managed Services and On Cloud. It has been
certified for ISO 9001:2008 quality standards, ISO
27001:2005 information security standards and SSAE
16 Type II for its Data Centre.
Get the ADP expertise working for you.
A 60 year track record that speaks for itself.
ADP India
Thamarai Tech Park,
S.P Plot No. 16 to 20 & 20A
.
Thiru Vi Ka Industrial Est ate,
Inner Ring Road, Guindy,
Chennai - 600032.
Phone
044 - 66448000
Email
contactadp@adp.com