Payroll and Compliance - The Monthly Chronicle (July 2017)


Due date for making ESI contribution has been changed to 15th of the following month
(Earlier the dates was 21st of the following month).

New Software for filing online returns of exempted establishments under Provident Fund

New Software for filing online returns of exempted establishments under Provident Fund

The Labour Standing Committee has recently reviewed the performance and found many shortcomings in the process of filing by exempted establishments.

In case there are returns pending for the period October 2016 to April 2017, they should be filed online latest by 15th June 2017 using the new online return form.

From June 2016 onwards, exempted establishments are advised to file returns for every wage month by the 15th of the following month after payment of contributions, by using the new online form uploaded by Employee Provident Fund Organisation (EPFO)

The performance and functions of exempted establishments will be regularly monitored and ranks assigned, based on performance. These ranks will be published on the EPFO website periodically.

There are additional data requirements in the new online form:

  • Claim (number) received during the month and settled
  • Date of transfer of contribution to the Trust
  • Investment of surplus funds in securities and bonds
  • Rate of interest declared in previous year
  • Date of filing returns online
  • Sufficient space should be provided for employer/ trustee feedback.

Note: Exemptions will be cancelled for exempted establishments not filing returns for three consecutive months.

Online PF withdrawal not possible if name in PAN, Aadhar and UAN are different

In order to apply for online Provident Fund (PF) withdrawal, the KYC details (viz., details of bank number, PAN, Aadhaar card number, Passport, Driving license, Election card etc.) are to be uploaded in the EPFO website. Also, the UAN number must be seeded with all KYC details and PF account details.

In a few instances, some account holders were unable to apply for online withdrawal of PF as the PAN and Aadhaar numbers were not getting verified. The EFPO department has come up with the reason for such occurrences: The account holders are unable to upload and attest KYC details because the name of the account holder in PAN and Aadhaar cards do not match.

All such account holders are advised to get the details corrected in all three documents (PAN, Aadhar and KYC details in EFPO site) by going to the EPFO website and filling up the joint declaration form. Once this is submitted to the PF office, details will be corrected in the UAN database, which will further enable them to submit KYC online.

India to approve two International Labour Organization resolutions on child employment

According to the 2011 census, there were 4.35 million child workers between the ages of five and 14 in India. Based on this huge number of child labourers, the Labour Ministry will soon propose two important changes in the rules of international conventions on child labour, marking an important step toward total eradication of child labour from the country.  
The Ministry is proposing to pass an amendment to the Child Labour Act, which will prohibit employing children below 14 years of age from any kind of work. In addition, there are also propositions to ban employment of children between 15-18 years in hazardous work. The labour department has also proposed to levy a penalty of a total sum of Rs 60,000, or imprisonment of up to two years, in case an employer hires children below the age of 14 years. The parents of such children employed are liable to be fined Rs. 5,000 and imprisoned for a period of six months to one year if they force their children below 14 years into labour for the second time after they are rescued.  

Universal Minimum Wage in India

During the last Union Budget, Finance Minister Arun Jaitley had mentioned the Universal Basic Wage concept for all Indians, which has been proposed under the ‘Code on Wages’ law. The concept of a Universal Minimum Wage merely means a basic income guarantee to all the workers in India across all industries.

If passed, the proposed bill under “Code of Wages” will substitute current laws like Minimum Wages Act of 1948, the Payment of Wages Act of 1936, the Payment of Bonus Act of 1965 and the Equal Remuneration Act of 1976.

As per the current law, a minimum wage of Rs 18,000 is applicable for workers in some scheduled industries or establishments in the law; this is the wage which any establishment hiring workers in these selected industries need to pay. States are free to set a higher minimum wage, within their jurisdiction, but Rs 18,000 is the minimum, as stipulated by the Centre. These limits and rates are to be changed and implemented under the new code of wages.

Compliance Calendar for the month of July, 2017
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th July 17 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15th July 17 Gujarat Gujarat PT regulations By Challan
20th July 17 Karnataka Karnataka PT regulations By Challan & Online
21st July 17 West Bengal West Bengal PT regulations By Challan
30th July 17 Assam & Orissa State-wise regulations By Challan
30th July 17 Maharashtra Maharashtra PT regulations Online
PF Central
15th July 17 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15th July 17 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
7th July 17 TDS Payment Income Tax Act, 1961 Online
31st July 17 TDS Quarter return for FY 2017-18 Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
31st July Chattisgarh State-wise regulations Offline
15th July - 1st Half yearly New Delhi State-wise regulations Offline
31st July - 1st Half yearly Goa State-wise regulations Offline
31st July - 1st Half yearly Daman & Diu State-wise regulations Offline
15th July - 1st Half yearly Gujarat Gujarat Labour Welfare Fund Offline
15th July - 1st Half yearly Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline
5th of every month Kerala (Kerala Shops & Establishment Workers Welfare Fund) Kerala State Labour Welfare Fund Offline
31st July - 1st Half yearly Madhya Pradesh Madhya pradesh Labour Welfare Fund Offline
15th July - 1st Half yearly Maharashtra Maharashtra Labour Welfare Fund Offline
15th July - 1st Half yearly West Bengal West Bengal Labour Welfare Fund Offline
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Sources: Government Notifications, Circulars, Press releases.


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