EPFO – Forwarding of Landmark Judgment delivered by the Hon’ble Division Bench of Madhya Pradesh High Court on the issue of considerable components of Basic Wages

• Tuesday, June 28, 2011, 7:23
• Corporate Law
• Featured, Notification

Montage Enterprises Pvt. Ltd versus Employees Provident Fund (Madhya Pradesh High Court)-  In aforesaid case, the Madhya Pradesh High Court has contended that; 1. Conveyance allowance is included in the definition of basic wages because it is universally, necessarily and ordinarily paid to all across the board. 2. Special allowance is included in the basic wages since it is paid to all the workers and there are no specific criteria to determine the amount of special allowance.However it is pertinent to note that, review petition has been filled by Montage Enterprise Pvt. Ltd before the Gwalior bench of Madhya Pradesh High Court as against the aforesaid judgment. In view of the same, the aforesaid judgment of Madhya Pradesh High Court is not definitive.

EMPLOYEES’ PROVIDENT FUND ORGANISATION
(Ministry of Labour & Employment, Govt. of India), Head Office

-
Bhavishya Nidhl Bhawan, 14, Bhlkaiji Camaji Place, New Delhi – 110 066.No. Coord./4(6)2003/Clarification/Vol.II/2482 Dated: 21.06.2011Sub: Forwarding of Landmark Judgment delivered by the Hon’ble Division Bench of Madhya Pradesh High Court on the issue of considerable components of Basic Wages – regarding,Sir,Please find enclosed herewith a copy of Judgment dated 24.03.2011 in the matter of Montage Enterprises Pvt. Ltd versus Employees Provident Fund, Indore & one another delivered by the Hon’ble Divisional Bench of Madhya Pradesh High Court Bench at Gwalior whereby, the Hon’ble Court has laid down a principle for treatment of certain allowances like Conveyance/Transportation allowance, Special Allowance etc. as component of “Basic Wages” for the purpose of Provident Fund liabilities if the same are being paid uniformly, necessarily and ordinarily to all employees. The same may be utilized as per merits of the case.

Yours faithfully

End: As above.

(Anita S. Dixit)

Regional PF Commissioner-I (Coord.)

Download

Montage Enterprises Pvt. Ltd versus Employees Provident Fund

Related posts:

1. WHETHER THERE IS A DIRECT CONFLICT OF DECISIONS DELIVERED BY DIVISION BENCH IN HOPE INDIA LTD. V. CIT [239 ITR 740] AND HAMILTON & CO. PVT. LTD. V. CIT [1994 ITR 391]?
2. Supreme Court decided to refer to a larger bench the issue of imposition of entry tax
3. Andhra Pradesh High Court stays Service Tax On Lawyers
4. EPFO decides to give monthly updates of contributions instead of annual statement
5. Landmark SC decision defining ‘inputs’ in Maruti Suzuki case doubted; issue referred to Larger Bench of SC

8 Comments on “EPFO – Forwarding of Landmark Judgment delivered by the Hon’ble Division Bench of Madhya Pradesh High Court on the issue of considerable components of Basic Wages”

• Ashok Asthana wrote on 28 June, 2011, 10:28

  Please upload the attachment also. Thanks
• admin wrote on 28 June, 2011, 12:01

  Its already there
• P V Rama Rao wrote on 28 June, 2011, 16:28

  Due to some technical problem the attachment is not opening. Pls mail me the same.
• aksaxena wrote on 29 June, 2011, 17:14

  I have gone through the judgement but Mrs Dixit order is not clear Pf official can issue the order for implementation but not issued in my point of view the employer break the basic wages in so many allowance to avoid pf contribution similarly it will not attract gratuity, lta, medical and etc. if possible the ministry should amend the various law to give benefit in welfare act at-least.
• MurthyRSN wrote on 29 June, 2011, 17:14

  please mail me the attachment
• admin wrote on 29 June, 2011, 17:31

  Please click the link it the post to download attachment.
• Mayank wrote on 6 July, 2011, 15:44

  Please send me a copy of Judgement
• Tripti wrote on 5 August, 2011, 18:15

  Plz. Sir mail me as it is not visible and m working on the same so need to know… For this i will be greatful to you ,, my mail ID – tripti.mba09@gmail.com

  Thanks and Regards,
  Tripti

Write a Comment