Friday, 22 May 2020

Specific Process To Claim Provident Fund Advances Under EPFO

Extension Of Working Hours For Factories In Karnataka

Government of Karnataka vide notification No.KAE 33 KABANI 2020 has exempted all factories registered under The Factories Act, 1948 in the state from the provisions of Section 51 (Weekly Hour), Section 54 (Daily Hour) with effect from 22nd May 2020 to 21st August 2020 subject to conditions that no adult worker shall be allowed or required to work in a factory for more than ten hours in any day and Sixty hours in any week and provision of Section 59 regarding overtime wage shall continue to be applicable without any change.

Amendment Of Maternity Benefit Forms Under Employees State Insurance (General) Regulations, 1950

Maternity Benefit Amendment in the Claim Forms:

ESIC vide notification No. N-12/13/1/2016-P&D has amended The Employees' State Insurance (General) Regulations, 1950 to bring following changes as mentioned, 

(1) Revised Form 17 (Certification/Notice of Pregnancy) and Form 19 (claim for Maternity Benefit and Notice of work) 

(2) Under Regulation 87, which regulates notice of pregnancy by an insured woman, newly inserted Regulation 87A shall now provide for Notice of Commission Mother to be submitted in the amended Form 17 to the appropriate branch office 

(3) Under Regulation 88, which regulates the claim for maternity benefits commencing before confinement, newly inserted Regulation 88A shall require submission of a declaration by an insured woman of her surviving child or children 

(4) Under Regulation 89 which provides for a claim for maternity benefit only after confinement or for miscarriage,      (a) Newly inserted Regulation 89C shall require submission of a claim for Maternity Benefit by Commissioning Mother in the amended Form 19. Provided further if commissioning mother and another woman both are insured, the claim will be provided only to the commissioning mother. Claim against miscarriage will not be payable to the commissioning as well as to the other woman 
(b) Newly inserted regulation 89 D shall require submission of a claim for Maternity Benefit by Adoptive mother in the amended Form 19 as well

Thursday, 21 May 2020


Attention is invited to the Gazette Notification - Reduction of statutory contribution rate from 12% to 10% for the wage months May, June & July 2020 vide Notification CG-DL-E-18052020-219425 dated 18.05.2020

Notification Guidelines:

As part of the government's Rs 20 lakh crore stimulus package, EPF contribution of both employer and employee has been reduced to 10 percent of basic wages and dearness allowances from existing rate of 12 percent for all class of establishments covered under the EPF & MP Act, 1952 for three months, May, June, July 2020

The reduction in statutory rate of contributions from 12% to 10% for wage months May, 2020, June, 2020 and July, 2020 for all class of establishments covered under the EPF & MP Act, 1952 announced on 13.05.2020 by the Central Govt. as part of Atma-Nirbhar Bharat package has been notified vide SO 1513 (E) dated 18.05.2020 published in the
Gazette of India.


It is applicable to all class of establishments covered under the EPF & MP Act, 1952 and exempted establishments. The establishment availing PMRPY benefits can remit contribution at reduced rate.

The establishments like Central and State Public Sector enterprises or any other establishment owned or controlled by or under control of the Central Govt. or State Govt shall not be applicable.

This clause shall not be applicable to the establishments eligible for relief under the Pradhan Mantri Garib Kalyan Yojana guidelines issued by the Employees’ Provident Fund Organization vide its Office Memorandum No.C-1/Misc./2020-21/Vol.II/Pt. dated 9th April, 2020 The Establishments covered during wage months of May-July, 2020 will be eligible for reduced rate for eligible remaining period from date of coverage.

Contribution Rate Summary:
Account Head
Upto wage month April 2020
From wage months May 2020 to July 2020
Employee’s PF Contribution – A/c.No: 1
Employer’s PF Contribution – A/c.No: 1
3.67% (12%-8.33%)
1.67% (10%-8.33%)
Employer’s EPS Contribution – A/c.No: 10
EDLI Contribution - A/c.No: 21
Administrative Charges – A/c.No: 2
0.50% (Mini.Rs.500/-)
0.50% (Mini.Rs.500/-)
No change in inspection charges in A/c.No.22 in respect of EDLI exempted establishments

Please Note: The reduced rate of contribution (10%) is minimum rate of contribution during period of the package. The employer, employee or both can contribute at higher rate also. 

Please refer the FAQ_EPFO on Reduced rate of Contribution Dt:20/05/2020.

Friday, 15 May 2020

Exemption For Employers From Various Labour Laws In Madhya Pradesh

Governor of Madhya Pradesh vide notification no.166 dated 6th May 2020 has promulgated The Madhya Pradesh Labour Laws (Amendment) Ordinance, 2020 amending The Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 and The Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 which shall come into force from the date of publication in the Gazette. 

Details of the Ordinance are as below, 

1) The Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 has now been made applicable to every undertaking wherein the number employees on any day during twelve months preceding is more than hundred instead of fifty as it stood prior to the amendment 

2) Under the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 a new provision has been added empowering the Government to exempt any establishment or any category of establishment from any or all of the provisions of this Act by issuing a notification subject to the conditions specified. Please refer notification for detailed information

Amendment To The Applicability Of The Contract Labour (Regulation And Abolition) Act, 1970 In Gujarat

Government of Gujarat vide notification No.GHR/2020/59/CLA/152020/210/M-3 has extended the applicability of The Contract Labour (Regulation and abolition) Act, 1970 to the establishments and contractors in Gujarat from existing applicability of employing ten or more workmen to twenty or more workmen.

Wednesday, 13 May 2020

Revised TDS/TCS Rate Chart from 14.05.2020 to 31.03.2021

In the press conference held on May 13, 2020 the Finance Minister, Smt. Nirmala Sitharaman, announced that the rates of TDS/TCS in respect of specified payments/receipts shall be reduced by 25%. This concession in the rate shall be available for the tax deducted or collected between 14-05-2020 till 31-03-2021. This relief shall not be available to a salaried and non-resident taxpayer. For you ease understanding we have prepared the TDS/TCS rate chart for better clarity.

Hon’ble Minister of Finance and Corporate Affairs Shared the Fine Print of special relief and credit support to Economy Dt 13.05.2020

Key Highlights of Special packages:

Ø  Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs
Ø  Rs 20,000 crore Subordinate Debt for Stressed MSMEs
Ø  Rs 50,000 crore equity infusion through MSME Fund of Funds
Ø  New Definition of MSME and other Measures for MSME
Ø  No Global tenders for Government tenders of upto Rs 200 crore
Ø  Extending the Employees Provident Fund Support for business and organized workers for another 3 months for salary months of June, July and August 2020
Ø  EPF Contribution to be reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months
Ø  Rs. 30,000 crore Special Liquidity Scheme for NBFC/HFC/MFIs
Ø  Rs. 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs
Ø  Rs 90,000 crore Liquidity Injection for DISCOMs
Ø  Relief to Contractors given by extension of up to six months for completion of contractual obligations, including in respect of EPC and concession agreements
Ø  Relief to Real Estate Projects the registration and completion date for all registered projects will be extended up to six months.
Ø  Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately
Ø  Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” by 25% for the remaining period of FY 20-21
Ø  Due Dates for various tax related compliance extended