Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: due date for vat payment :: articles on VAT and GST in India :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARDS :: TDS :: cpt :: ACCOUNTING STANDARD :: empanelment
 
 
General »
 Non-performance: I-T dept transfers 245 commissioners
 Income Tax efiling: Tax implications resulting from clubbing of income
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd
  GST: How companies are gaming the system
 Goods And Services Tax transparency: Elimination of added taxes to boost investment in realty
 In a first, Income Tax department to charge govt official under new benami law
 Income Tax Return Filing: 10 common mistakes people make while filing return of income
 Income Tax efiling: A few essential facts for senior citizens to keep in mind
 Pre-GST discounts get Maharashtra 16% more sales tax in three months
 Here’s how self-employed should efile their taxes
 Advance tax given by individuals in June quarter rises more than 40%

Most companies don't have proper EPF provisions
February, 21st 2009

Many Indian companies have not made adequate provisions for employee provident fund(PF) and pension, as per a survey by consulting firm Mercer.

The survey showed that 88% of top Indian companies have not made required provisions for defined benefit PF scheme which is mandatory as per accounting standards laid down by ICAI.

Put simply, a defined benefit plan is where employee benefits are sorted out based on a formula using factors such as salary history and duration of employment such as the PF.

Companies either set up their own trust which manages the money deposited from employees PF or parks it with the employees provident fund organisation (EPFO), the body which controls and regulates all PF trusts in the country.

The money deposited with the trust earns interest over a period of time and has to confirm to returns prescribed by EPFO. If the trust earns lower returns then the company has to cover the gap and make a provision in its accounts for such a liability.

The Mercer survey which studied 34 top Indian companies spread across sectors such as automobiles, banking, energy & power, engineering & manufacturing , FMCG, IT, petrochemical, pharma and telecom shows only 12% of companies have made adequate provisions for provident fund in their accounts.

Moreover, 40% of the companies which did not make provisions indicated that it is practically not possible to measure the liability associated with such schemes.

Non-disclosure of liabilities arising out of employee benefits or not creating adequate provisions can have serious implications, especially in case of shrinking profits or collapse of businesses, said Mercer India business leader for retirement , risk and finance management Gautam Kakar.

ICAI prescribes accounting standards and guidelines for treatment of employee retirement benefits under AS-15. The Mercer survey looked into the practices followed by top Indian companies in providing these benefits and their compliance to the accounting standards which were revised in 2005.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions