Payroll and Compliance - The Monthly Chronicle

November 2017

The Aadhaar program was launched in 2009 with the main objective to provide universal identity to every Indian resident. Aadhaar is the world's largest biometric ID system, with over 1.171 billion enrolled members as of 15 August 2017.

There are many attached to having an Aadhaar number in today’s time, as many government schemes such as Provident fund, ESIC and other subsidies and are now linked with Aadhaar. The of the Aadhaar number cannot be ignored now, and it has been made mandatory for most activities, from registering a mobile number to filing your income tax return.

Aadhaar, being a universal identity card, enables the employer to verify the respective employee data on a real-time and accurate basis. Seeding the Aadhaar number with the UAN database enables every employer to verify the details submitted by their potential employees in less than 15 minutes. Earlier, this verification was a week-long process with high hiring costs.

Using Aadhaar as a verification process reduces cost as well as process time dramatically (refer infographic below). It also helps make the process paperless — there is no need to provide documents that show, say, proof of residence. The government is now developing an application and process that would provide a better and easier Aadhaar verification process.

Updated Frequently Asked Questions on Inspection Policy

The Provident Fund authority has provided a set of Frequently Asked Questions (FAQs) based on the Provident Fund Inspection Policy.
The FAQs have been prepared by the Central Information Commission and have been uploaded on the official Provident Fund website.
The FAQ file basically provides you and your company with the following details:

  • Inspection policy and criteria adopted by the Provident Fund organisation.
  • List of establishments exempted from inspection purview
  • Types of inspection and methodologies adopted for execution of each of such inspection
  • Frequency of inspection
  • Inspection report details
  • Action taken against establishments that are violating the rules and regulations
  • Other general instructions

To read the FAQs, please refer to the link.

Introduction of e-Sign at Unified Portal

The EPFO has provided a facility to employers for approval of KYC, PMRPY registration and establishment registration through digital signatures (DSC) at Unified Portal. However, it has been observed and brought to notice that many employers are facing difficulties in signing the documents using DSC and are unable to approve KYC details of their employees and\or register their employee under the PMRPY scheme.

To solve this problem, the EPFO has now introduced the free Aadhaar-based e-Sign in addition to the DSC to be used by employers. An authorized signatory who has registered for the e-Sign can sign documents by getting an OTP on the mobile registered with Aadhaar.

Authorized signatories whose DSC is not available at Unified Portal can instead register their e-Sign at Unified Portal and get it approved from the concerned EPFO field office.

The user manual for this process is here.

Revised Certificate of Coverage (COC) Application

In June, the process of obtaining a COC, in case of an employee going abroad for work to a country that has a Social Security Agreement (SSA) with India, has been revised. The old filing process and application has been scrapped, and a new online tool has been introduced, with a single-page COC application form.
A few minor changes were done this month on the application.
There are additional details to be submitted. The additional details are:

  • Details of family member accompanying the employee abroad
  • Details of business or industry of employer in which he or she involved in India.

The revised application link is attached here.

EPFO introduces New Facility to Link UAN with Aadhaar

This Diwali, EPFO announced a new facility wherein members can link their UAN with their respective Aadhaar number.
For using the facility, the member will have to provide his/her UAN. An OTP will be sent to the mobile linked with that UAN. After OTP verification, the member will have to provide his/her Aadhaar number. Another OTP will be sent to his/her mobile/email linked with Aadhaar. After OTP verification, if UAN details are matched with Aadhaar details, then UAN will be linked with Aadhaar.
After linking, the EPFO member may avail online EPFO services that are linked with Aadhaar.

You can access the facility here.


Compliance Calendar for the month of November, 2017
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th November 17 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15thNovember 17 Gujarat Gujarat PT regulations By Challan
20thNovember 17 Karnataka Karnataka PT regulations By Challan & Online
21st November 17 West Bengal West Bengal PT regulations By Challan
30thNovember 17 Assam & Orissa State-wise regulations By Challan
30th November 17 Maharashtra Maharashtra PT regulations Online
PF Central
15thNovember 17 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15thNovember 17 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
7th November 17 TDS Payment Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5thNovember 17 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline
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Sources: Government Notifications, Circulars, Press releases.


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