EPF Exemption surrender guidelines-Processing of pending cases. Transfer of Trust funds and third party audit-EPFO

EPF Exemption surrender guidelines-Processing of pending cases. Transfer of Trust funds and third party audit-EPFO

For Web Circulation Only

Employees’ Provident Fund Organisation
(Ministry of Labour, Govt. of  India)
Bhavishya Nidhl Bhawan, 14- Bhikaji Cama Place,New Delhi – 110066
www.epfindia.gov.in,www.epfindia.nlc.in

No. C-Ex/32(6)13/Cancellation Order/24832                                                                            Date: 27 DEC 2016

To
All Addl. Central P.F. Commissioner (Zones),
All Regional P.F. Commissioner/OIC of Regional Offices,
All Regional P.F. Commissioner/OIC of Sub Regional Offices.

Subject :- Guidelines for processing the cases of surrender of EPF Exemption – Regarding

Sir,

Please find enclosed herewith the Guidelines for processing the cases of surrender of EPF Exemption. The said guidelines have been approved by the Central Board of Trustees in its 215th meeting held on 19.12.2016.

2. All Regional PF Commissioners are requested to review  and process the cases of surrender of EPF Exemption pending with Regional/Sub Regional Office as per the guidelines laid in the Annexure overleaf.

Yours faithfully

(K. L. Goyal)

Addl. Central PF Commiss ioner-I (Exemption)
Ph No. 011-26170928

ANNEXURE

Guidelines for processing the cases of surrender of EPF Exemption granted to Establishments

The guidelines , as approved by Central Board of Trustees, EPF in its 215th meeting held on 19.12.2016, for processing the cases of surrender of EPF  Exemption granted to Establishments , is as under:-

(i) An application in this regard by the employer, addressed to the appropriate Government concerned , through the Regional P.F. Commissioner concerned has to be preferred.

(ii) Application for surrender of exemption should be supported with resolution of the Board of Trustees and copy of notification/order issued by the  appropriate Government granting exemption in favour of the establishment.

(iii) Application for surrender of exemption should invariably be from a prospective date.

(iv) If an exempted establishment expresses its inability to run the P.F. Trust and intends to surrender exemption granted to it from a specified date after resolution of the Board of Trustees ,Regional F. Commissioner concerned should promptly facilitate transfer of Trust funds to the statutory fund and ensure compliance of the establishment as un-exempted from the date specified in the resolution/establishment’s application.

(v) Regional P.F. Commissioner concerned shall get the Trust Fund audited by a Third Party Auditor so as to ascertain financial health of the Trust and furnish an assessment report to the effect whether any liability is likely to arise on EPFO. However, it will not restrain Regional P.F. Commissioner from taking over the Trust fund and facilitating  compliance of the establishment as an un-exempted establishment.

(vi) Liability of EPFO in such cases will be limited to the extent of fund received from the Trust and loss, if any, incurred by the Trust will be got recouped/recovered by/from the employer .

(vii) While forwarding proposal for surrender of exemption Regional P. Commissioner concerned shall also furnish a certificate in unambiguous terms to the effect that the establishment has not violated any term and condition of grant of exemption.

(viii) Regional P.F.Commissioner concerned shall also furnish a report regarding up-to­ date compliance status of the establishment.

(ix) All pending cases of this nature may be reviewed and corrective steps taken at the end of the Regional P.F. Commissioners concerned.

(K. L. Goyal)
Addl. Central PF Commiss ioner-I (Exemption)