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Employee's Provident Fund Organization (EPFO) has added a provision of penalty in the agreements to be signed by four fund managers according to which fund managers have to declare minimum return to government security bench mark or have to face penalty; performance will be analyzed based on CRISIL's market interest bench mark.
Last month EPFO has appointed SBI, HSBC AMCs, Reliance capital and ICICI securities primary dealership as four fund managers to manage about Rs 3 lakh crore corpuses of 4.72 subscribers of EPFO for three years.
For the first year SBI has been allocated 35% of the fund, ICICI securities Primary dealership 25%, HSBC AMCs 20% and Reliance capital 20%; and going forward fund will be allocated on the basis of the performance of the last year as the best performer will get larger portion of corpus to manage. Subscribers of EPFO add about Rs 30,000 crore of funds every year which need to be invested.
Credit Rating Company CRISIL will analyse the performance of the fund managers and level of penalty and other details are being worked by CRISIL and EPFO; performance will be analyzed every quarter but penalty will not be imposed in the first two quarters.
EPFO will issue warning to the bad performers in the initial months and penalty will be imposed only at the end of the year and they could be even dropped for bad performance.
This move on the one hand will increase the competition between the fund managers but on the other hand can lower the quality of investment as if a fund manager has to be judged by the interest earned than he could ignore the risk and go for the return.
EPFO has appointed multiple fund managers HSBC AMCs, ICICI Prudential, SBI and Reliance capital for the first time in July 2008 to get better return on the deposits and their term ended on 31 March 2011; among these ICICI Prudential has given the highest return of 8.72%, HSBC 8.64%, SBI 8.61% and Reliance capital had given the lowest return at 8.57%
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Is Honorarium attracts Employee Provident Fund?
No
What journal entry for provident fund?
To record employee contributions to the provident fund: Debit Provident Fund Expense and Credit Employee Contribution Payable. To record employer contributions: Debit Provident Fund Expense and Credit Employer Contribution Payable.
How do you maintain our Employee Provident Fund record?
The Employee Provident Fund record is maintained by the EPF Organization and a copy of the latest statement will be provided to both the employee and employer as requested
Does the company or union decide witch Provident Fund to have in a company?
No. The government has the Employee Provident Fund which is mandatory for all employees of companies in India
Where is Mumbai's Provident Fund's office?
Employee Provident Fund Office‎Road No 7,Bandra East,Mumbai,Mumbai suburban,Maharashtra‎ - 022 26474444‎
If i dont pay provident fund am i permanent?
I dont think so. Every individual who is the employee of a company has to get provident fund. So, in your case I doubt that.
Is tax deducted from provident fund of an employee at the time of voluntary retirement?
No
What is the minimum required number of employees for under Employee's Provident Fund Act in India at present?
20 employees required for enrollment in provident fund scheme
What is cemtex department?
I doubt that it is related to your EPF (employee provident fund). So money is debited to the bank account which you would have asked to debit your provident fund money.
Is there any tax on general provident fund received on retirement of government employee?
No
What is the minimum employee strength required to pay Provident Fund by a company?
7
If the provident fund administrator returns contributions does the employer then refund both the employee and employer contributions to the employee?
Yes.
