EPFO Guidelines: Processing of cases for surrender of EPF Exemption of Establishments
The EPFO has issued a Circular dt. 27 Dec. 2016 containing Approved Guidelines for processing of the cases relating to surrender of EPF Exemption granted to Establishments, as under:
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 P. 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. F. 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.