Deduction of ppf for retainer

Querist : Anonymous (Querist) 04 January 2011 This query is : Resolved
As per law is it mandatory to deduct ppf for retainers? Please Reply soon. Its urgent...

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Ajay Bansal (Expert) 04 January 2011
Yes.After one year of service of anybody, PPF amount from his/her sailry will have to be deducted.

Uma parameswaran (Expert) 04 January 2011
Yes. PF amount shall be deducted from salary

R.Ramachandran (Expert) 04 January 2011
When you say 'Retainer' what exactly do you mean? Are they professionals? In fact what is their nature of job? Also please indicate what is your business.

Sankaranarayanan (Expert) 04 January 2011
hello PPF and EPF is different, PPf is for public and EPF is purely for the employess by employer for his employment.

Sankaranarayanan (Expert) 04 January 2011
the EPF amount is detected frm the Basic salary of the employee, if the basic salry cross over 6500 then the employer can detect only for 6500@ the rate of 12% 780rs.and the equal amount should be contributed by employer. then the amount should be remit in the bank with some document charges and all to the pf commissioner.

R.Ramachandran (Expert) 04 January 2011
Dear Mr. Sankar,
The question is whether it is mandatory to deduct towards provident fund from retainers?
(Let us keep aside the distinction between ppf and epf for a while).

A V Vishal (Expert) 04 January 2011
Agreed with Mr Sankar & Mr R.R, however distinction is required since if the payment is PPF then there is no necessity since PPF is a personal saving, further, if it is EPF then for a retainer there need not be any deduction since professional fees is paid to the retainer and there is no nexus of employer-employee relation.

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