UP/VNS/530537-A Inspection report M/S Sun Flower Convent School(Run by Puspak Shikhan Sansthan), Barahpur, Nandganj,Gazipur

Name of AEO - Shri T.D.Ram (Area Enforcement office) &-Shri V.K.Srivastava (Squad member)7A - Enquiry period (03/2011 to 08/2011)Document called for-through letter 29.11.2014, 31.03.2015 & 08.04.2015Date of visit- 08.04.2015 & 25.04.2015Bank details-State Bank of India Nandganj, Gazipur (A/C no- 32054209242)Responsible person- Smt. Pushpa Yadav, Manager

Brief introduction of the School

The Sun Flower Convent School (further referred as School) was covered with effect from 01.07.2010 under Employees Provident Funds and Miscellaneous Provision Act 1952 (further referred as Act) and accordingly coverage letter was issued. The School has obtained NOC from state government vide NOC-no 7827-33 with effect from 24.07.2011.The School got provisional affiliation with CBSC board New Delhi vide affiliation no 2131430 since 2012.The school is being run by the society namely Puspak Shikhan Sansthan, Barahpur, Nandganj,Gazipur. At present the manager of the school is Smt. Pushpa Yadav wife of Surya Nath Yadav. The school has no any branch declared in form 5A (copy enclosed)Pan no of the manager Smt. Puspha Yadav is BYXPP0255Q. (copy enclosed).Bank account no MCA 32054209242 of the school is being maintained at SBI Nanadganj, Gazipur. (copy enclosed).

Iniation of 7A enquiryBeing in default for deposition of EPF dues, proceedings u/s 7A of the Act was initiated for the period 03/2011 to 08/2011. Summon as required under the Act was also issued vide summon no 137791/UP/53053/Comp-I-II/7A dated 29.11.2011. Submission of records The School was directed to file the records before the assessing authority vide letter no 136953/ EPF/ SRO/ VNS/ COMP/ UP/53053 dated 06.08.2013 and directed to submit following details such as- Date of appointment in respect of excluded employees from their date of joining Rate of DA admissible from time to time Reason for not preparing forms no 16 which is mandatory by the employer.In compliance of the direction issued by the office, the School has already filed copy of balance sheet, salary register etc and other details as asked for to submit before the assessing authority.

Facts and findingsThe undersigned was directed to submit the deposition report vide letter no 1498/EPF/UP/VNS/53053 dated 18.11.2014.In compliance of office direction the undersigned issued a letter to the School for production of relevant records such as payment register, copy of balance sheet, details of excluded employees and their payment, details of school vehicle, bank details etc for verification vide letter no AEO/7A proceedings/ UP/VNS/53053 dated 29.11.2014 and followed by reminder dated 31.03.2015(Copy enclosed).The squad commissioned in the case visited the School on 08.04.2015 for verification. On spot Shri Deepak Singh, vice principal met and produced copy of balance sheet and details of excluded employees. Regarding rest of the records Mr. Deepak Singh told that the relevant records were already submitted in office and requested for a week time for re-submission. Therefore, the squad issued a letter by demanding the documents latest by 13.04.2015.The School was directed to produce the other records as demanded by the letter dated 29.11.2014 and 31.03.2015 latest by 13.04.2015 in the office of RPFC Varanasi for verification. The School intimated to the undersigned over phone that all the records are available and requested to visit the School for verification as per convenience of the squad. The squad members visited the school on 25.04.2015 to verify the records. On spot Shri Deepak Singh, Vice Principal met and produced relevant records for verification.Payment/salary registerSchool has produced records i.e payment sheet (Copy enclosed), attendance register, balance sheet (Copy enclosed) etc before the undersigned squad for verification.On verification it was found that the School has paid DA @20/- to all the employees at a uniform rate and no any anomaly was seen. The school has also paid HRA to their employees. As per payment register it was noticed that EPF was deducted on the essential component as prescribed under u/s 2(b) of the Act. Read with u/s 6 of the act. On verification it was noticed that the salary in respect of most of the employees are over and above wage limit prescribed under the Act.Most of the employees are excluded employees due to getting salary over and above wage ceiling prescribed under the Act. The payment is being made through bank account of their staffs.The squad verified the form no- 11 in respected of excluded employees. However the school has extended the EPF benefits, as per mutual understanding between the employees and the school, in respect of 10 excluded employees from time to time, whose details are as under-

ASHOK KUMAR SWAIN

DEEPAK KUMAR SINGH

B.L.RAI

JASSI SINGH

SOHAN YADAV

SUNIT KUMAR

AJAY KUMAR YADAV

KUMARI VISHWAKARMA

P.DHAN SEKHRAN

D.LAXMI PRABHA

The squad in the opinion that due to being excluded employees, extending of membership is an additional benefit to the employees and seems nothing wrong against the Act. On enquiry non-extension of EPF benefits about rest of the excluded employees the management told that these employees were not ready to contribute EPF. Therefore, the management could not deposit the EPF. Security chargesThe School vide letter (copy enclosed) intimated that no security agencies was deployed at the school. As per books and balance sheet no any charges booked against security and no security guard was found during visit working in the school.Vehicles The School provided the registration copy of vehicles (copy enclosed) engaged for transportation of the students. The registration no of vehicles is such as- (A) UP61-K-8721 (B) UP61-T-0546 (C) UP61-L-1640.

As per payment sheet it was noticed that the staff deployed on vehicles are getting EPF benefits.Hostel facilityThe School has no hostel facility at present since starting of the school.Query by assessing authorityThe school was directed vide letter no 136953/ EPF/ SRO/ VNS/ COMP/ UP/53053 dated 06.08.2013 and directed to submit following details such as- Date of appointment in respect of excluded employees from their date of joining Rate of DA admissible from time to time Reason for not preparing forms number 16 which is mandatory by the employer.In respect of the query raised above by the assessing authority, the squad members enquired about the position and submitted position point wise as under- Following 10 employees are excluded (Copy enclosed) employees from their date of joining as per getting salary over and above prescribed wage ceiling, which is verified with reference to the payment sheet as per details given below-

slnoNameDate of JoiningWages

1ASHOK KUMAR SWAIN30-03-200710000

2DEEPAK KUMAR SINGH30-03-20077020

3SHIV SHANKAR PRASAD02-04-20087020

4B.L.RAI30-03-20077020

5RASHID SIDDQUE02-04-20087020

6SHAILENDRA SRIVASTAVA30-03-20087020

7AWANISH SINGH01-07-20106600

8UPENDRA NATH SINGH01-07-20106600

9TANVER RIZVI01-07-20106600

10MANISH PASWAN01-04-20106600

During the corresponding period of enquiry @ 20% DA was allowed to all staffs. No any specific order was provided. Mr. Deepak Singh, vice-principal that that the management of the school has decided and the rates and accordingly payment was made. On verification it was found that the School has paid DA @20/- to all the employees and no any anomaly was seen. Shri Deepak Singh, Vice-Principal denoted that due to the total salary in a financial year in respect of any employees are always comes less than two lakh, prescribed non-taxable limit under Income Tax rule 1961, therefore, no TDS were deducted and deposited in Income Tax department. Observation issued by previous AEO and compliance positionFormer, AEO Shri J.P.Gupta vide inspection note dated 23.01.2013 directed to enroll the following employees from their date of joining. Shri Sunit Srivastava Shri Ajay Kumar Srivastava Smt. Kumari VishwakarmaIn compliance of inspection dated 23.01.2013 the management of the school has enrolled them by extending EPF benefits and allotted account no UP/53053/16, UP/53053/17 and UP/53053/18 respectively. Accordingly EPF contribution was deposited afterwards through ECR compliance.Facts & findingsThe 7A proceeding was initiated to ensure compliance in respect of the employees being in default for EPF dues for the period 03/2011 to 08/2011. On verification of payment sheet, attendance sheet and form no -11 and other records of the School it was found that the School was being in default of depositing EPF dues. As per copy of payment sheet it was clear that the EPF contribution was not deducted from the payment sheet of the School for the month of March 2011 and April 2011.The school has deposited the EPF contribution for the month March 2011 and April 2011 from the management side without deduction from their employees. This fact was also verified with the corresponding period of following month to check whether the deduction was recovered from their salary or not. As per payment register it was found that no amount was recovered from their salary. From the month May 2011 onwards EPF contribution was deduction through payment register. Mr. Deepak Singh, vice-principal denoted that the EPF Challan was submitted to the SBI Nandganj, Gazapiur along with the requisite cheque but the same was returned and credited the school account and intimated that EPF remittances could not be processed due to the reason that the branch is not authorized for EPF collection. The School has submitted an application dated 02.01.2012 issued by SBI Nandganj, Gazipur on behalf of his contention (Copy enclosed).RecommendationAs per records it was clear that the most of the payment was made through direct bank account of the staff and a most of the employees are excluded to the salary drawn over and above of wage ceiling i.e. 6500/- p.m. which was verified with reference to form no-11.It was also noticed that the establishment has not deposited the contribution (employees share only) for the period 08/2010 to 01/2011 on the ground that the employees has submitted an application in EPF office to waive the contribution for the period. The request of the employees and employer has been denied by the APFC vide order dated 17.02.2011.Keeping in view of the above it is recommended the dues calculated Rs. 21666-00 (Rs. Twenty One Thousand Six Hundred Sixty Six Only) may be assessed in respect of evaded employees.MonthWagesEmpEmprAdmEPSEDLIEDLI-AdmTotal

Aug-10300903611000003611

Sep-10300903611000003611

Oct-10300903611000003611

Nov-10300903611000003611

Dec-10300903611000003611

Jan-11300903611000003611

total180540216660000021666

Rs. Twenty One Thousand Six Hundred Sixty Six Only

The School may be directed to file annual returns and deposit the above dues calculated in respect of employees. Accordingly proceedings u/s 7-A may be concluded, if any clarification required please be intimated to the undersigned for further submission.To,The A.P.F.C.,Varanasi.Yours faithfully,

(Tilak Dhari Ram) (V.K.Srivastava)Enforcement Officer E.O/Squad Member

Copy to-M/S Sun Flower Convent School, Nandganj, Gazipur with the direction to deposit the dues and file return accordingly.

Encl:- 5A (copy enclosed) Copy of PAN in r/o Smt.Pushpa Yadav Copy of cancelled cheque Letter of the school Letter dated 29.11.2014,21.03.2015 and 08.04.2015 issued to the School Vehicles registration copy (3 pages) SBI latter dated 02.01.2012 Balance sheet for 2011-2012 and 2012-2013 Payment sheet for 03/11 to 08/11

(Tilak Dhari Ram) (V.K.Srivastava)Enforcement Officer E.O/Squad Member