PF, ESI, P.Tax

Skill Short > PF, ESI, P.Tax

PF (Provident Fund), ESI (Employee State Insurance) &P.Tax (Professional Tax) are the three compliances that are generally ignored by Small & Medium Enterprises as they are not aware about its applicability and consequences of failure to comply. SMEs are so much involved in their day to day operations that they generally tend to avoid any Compliance and since they are not highly educated or computer friendly, they hire an accountant who can look after all the compliances and aware them of the consequences of failure and thus ensure timely compliance.

PF is like a pension fund, it is introduced by the government via EPF Act, 1952 for the welfare of the employees of an organization who are not educated enough to know about Saving for the future and to safeguard their interest. PF aims to provide employees with a lump sum payment, after they retire or quit their job, for their well being.

Responsibility for PF deduction, payment & Return Filing is on the employer and any negligence on the part of the employer is penalized. Further PF is not applicable to all the organizations since it is a huge compliance burden and will become an hindrance in doing business you have just started. So you as an accountant must have knowledge about Applicability (i.e. when does PF act applies to an organization), Rulesand Rates of PF deduction, Time Limit of making payment to the relevant fund and Time Limit to file PF Return along with consequences of failure to comply with the law

ESI is like a health insurance scheme, it is introduced by the government via ESI Act, 1948 for the social security of workers in an organization who are not financially stable to bear the burden of medical expenditure in case of some accident at work place or diseases in general. ESI aims to provide medical treatment for workers and their dependents. There are several ESI hospitals, ESI dispensaries for the exclusive use of ESI beneficiaries.

Just like PF, responsibility for ESI deduction, payment& Return Filing is on the employer and any negligence on the part of the employer is penalized.Further just like PF, ESI is not applicable to all the organizations since it is a huge compliance burden and will become an hindrance in doing business you have just started. So you as an accountant must have knowledge about Applicability (i.e. when does ESI act applies to an organization), Rules and Rates of ESI deduction, Time Limit of making payment to the relevant fund and Time Limit to file ESI Return along with consequences of failure to comply with the law.

P.Taxis a tax levied by State Government on all Traders, Professions & employments. Further the amount of Tax is directly proportional to the income earned. Thus the amount of Tax differs from one State to another.

Just like PF & ESI, Responsibility for P.Taxdeduction from employee’s salary and payment of the same is on the employerand any negligence on the part of the employer is penalized. So you as an accountant must have knowledge about Rules and Rates of P.Tax deduction according to the State, Time Limit of making payment and Time Limit to file P.Tax Return ( if any) along with consequences of failure to comply with the law which again varies from State to State.

Further you can manage all the above compliances by using the PAYROLL Feature in Tally.ERP 9.

SKILLSHORT provides you with an opportunity to get trained in the above Compliances ( Applicability of each compliance, Rules & Rates of deduction, Time limit for payment & return filing and consequences of failure) by Qualified Chartered Accountants having both expertise & experience in the subject and that too at an affordable cost.