Employees’ Provident Fund Organisation

(Ministry of Labour & Employment, Govt. Of India)

Bhavishya Nidhi Bhawan, 14- Bhikaji Cama Place, New Delhi – 110066

No. Exem/10(16)2016/28265

Date:- 01/02/2017

To

All. ACC Zone,
All Regional PF Commissioner,

In-Charge of Regional/Sub-Regional Offices.

Subject: Modifies guidelines for rates of Levy of Surcharge in view of New Pattern of Investment prescribed by the Government of India vide notification No. S.O. 1433 (E) dated 29.05.2015 to be levied on BoT of the Exempted/Relaxed Establishments by RPFC on A/c of deviation from the prescribed pattern of investment – Regarding.

Sir,

The guidelines on rate of surcharge to be levied on Board of Trustees of the exempted / relaxed establishments by RPFCs on account of deviation from the prescribed pattern of investment were circulated vide circular No.- E-111/18(1)04/Sub-Committee/2961 dated 06.05.2014.

2. The Government of India has since notified a new pattern of investment to be followed by Trusts of exempted establishments vide notification S.O. 1433(E) dated 29.05.2015. Copy of the same is annexed herewith as Annexure -‘A’. Under the new pattern of investment some new categories/sub-categories of investment options have been introduced. In view of this development, need for modification in the rates of levy of surcharge approved earlier by the Sub-Committee was felt.

3. In view of the new pattern of investment prescribed by the Government, the issue of levy of surcharge and its rates was placed before the Sub-Committee of Central Board of Trustees, EPF on Exempted Establishments in its 41st meeting held on 12.01.2017. After detailed deliberation and recommendation of Sub-Committee of Central Board of Trustees, EPF on exempted establishments in its 41stmeeting held on 12.01.2017, the following general guidelines are issued to bring appropriate deterrence on deviation in adhering to the investment guidelines.

Sr. No. Investment Category
(Percentage Amount to be Invested)
of Deviation

Rates

1.   Government Securities and
Related Investments.(Minimum 45% and Upto 50%)
1st 0.25% of amount* in shortfall or excess of prescribed percentage of investment in the category.
2nd 0.50% of amount* in shortfall or excess of prescribed percentage of investment in the category.

1.00% of amount* in shortfall or excess of prescribed percentage of investment in the category.

3rd
2. Debt Instruments and Related Investments. (Minimum 35% and Upto 45%) 1st 0.50% of amount* in shortfall or excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
2nd 1 00% of amount* in shortfall or excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
3rd 2.00% of amount* in shortfall or excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
3. Short-term Debt Instruments and Related Investments. (Upto 5%) 1st 0.50% of amount* in excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
2..d 1.00% of amount* in excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
3rd 2.00% of amount* in excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
4. Equities and Related Investments. (Minimum 5% and Upto 15%) 1st 0.50% of amount* in shortfall or excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.

1.00% of amount* in shortfall or excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.

2nd
3rd 2.00% of amount* in shortfall or excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
5. Asset Backed, Trust Structured and Miscellaneous
Investments. (Upto 5%)
1st 0.50% of amount* in excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
2nd 1.00% of amount* in excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.
3rd 2.00% of amount* in excess of prescribed percentage of investment in the category plus 10% of the surcharge so worked out.

[* to the extent of deviation in the investment pattern (excess or shortfall in respective category as the case may be), proposed to be regulated by levy of surcharge.]

4. Deviation can be regulated by levy of surcharge within the securities class given in the prescribed investment pattern If the Trust invests in a security/scrip in which investment is not at all permitted, it cannot be said to be a deviation but violation which may attract cancellation/withdrawal of exemption/relaxation.

5. For the purpose of extent of deviation, the term “investment surplus” for any financial year shall mean the sum total of fresh contribution receipts of maturity proceeds, commission amount plus any other accruals (including interest on investment) less payments and

6. Any deviation in the patter of investment in any one year prior to 01/04/2014 will be treated as first occasion as proposed in circular dated 05.2014, if deviation has happened after a gap of three years from the year in which deviation occurred last.

7. Further, prospective deviation (from 04.2014) on maximum of three occasions may be regularised by levy of surcharge as stated at Para 9 and any deviation beyond may result in cancellation of exemption or withdrawal of relaxation as the case may be, apart from levy of surcharge as stated above. Further, the deviation in any one particular year irrespective of approved asset class may mean one occasion.

8. All the RPFCs In-Charge of Regional/Sub-Regional may levy surcharge at the rates prescribed above to regulate the deviations from 2015-16

9. The amount of surcharge levied shall be paid by the establishment within 30 days from the date of order of ‘ If the surcharge is not paid within the time so stipulated, it will attract interest at the rate as provided under Section 7Q of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

10. These guidelines are general in nature. In any exceptional case, a proposal in writing to vary from the prescribed surcharge in the above guidelines, maybe forwarded to ACC (Compliance) for decision of CPFC keeping the overall interest of the members in consideration.

This issues with the approval of CPFC].

Yours faithfully

(K. L. Goya!)
Addl. Central PF Commissioner -1 (Exemption)
Ph No. 011-26170928

Copy to:

1. CVO

2. FA & CAO Addi. CPFCs (Zones)

3. Director (NA TRSS)

4. Director (OL) for Hindi translation

5. PS to CPFC for information

6. RPFC-11 (NOC) for web uploading

Employees’ Provident Fund Organisation

(Ministry of Labour & Employment, Govt. Of India)

Bhavishya Nidhi Bhawan, 14- Bhikaiji Place, New Delhi – 110066

File no. HO/IMC/132/Pattern20151/42

Date: 26.06.2015

File no. HO/IMC/132/Pattern2015/12937

To

The all Additional CPFCs

RPFCs In-Charge of RO/SRO, EPF

Subject: Copy of Gazette Notification of Pattern of Investment 2015 for EPF Exempted Establishments.

Sir,

In continuation of this Section letter no. HO/IMC/132/Pattern2015/2015/8004 dated 09.06.2015 vide which a copy of draft notification of new Pattern of Investment 2015 was forwarded for information with a request to bring it to the notice of all exempted establishments under your jurisdiction and further instruction that the said pattern will be applicable to all exempted establishments w.e.f. 29Th May, 2015, please find attached copy of Gazette notification of said Investment Pattern 2015 for exempted establishments notified by Ministry of Labour & Employment, Govt. of India vide S.O. No. 1433 (E) dated 29.05.2015.

It is requested to bring it to the notice of all exempted establishments under your jurisdiction.

Encl: – As above.

Yours faithfully,

(Vishal Agarwal)

Regional P.F. Commissioner-II (IMC)

Download Notification No. S.O. 1433(E) dated 29.05.2015

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Tags : EPF (296) EPFO (263) Provident Fund (231)

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