EXEMPTION

MANUAL
PREFACE
Welcome to the Exemption Division Manual of the Employees' Provident Fund Organization
(EPFO). This comprehensive guide is designed to serve as a valuable resource for our
dedicated employees, officials, and all stakeholders involved in the administration and
management of EPFO's exemption division.

The world of employee’s provident fund is ever evolving, and the intricacies of granting
exemptions are continually shaped by legislative changes, procedural enhancements, and
evolving industry standards. To navigate this dynamic landscape effectively, it is imperative
that we equip ourselves with a thorough understanding of the exemption division's
operations, processes, and objectives.

This manual has been meticulously crafted to offer a detailed insight into the functioning of
the exemption division, from its core principles to its day-to-day operations. By providing a
standardized and comprehensive reference, our aim is to foster transparency, consistency,
and excellence in the way we manage exemption cases and serve our valued stakeholders.

Through this manual we aim to provide clarity & guidance, promote consistency &
standardization in operations, ensure compliance in an ever – changing regulatory
environment, enhance efficiency of the EPFO Exemption machinery and most importantly
emphasize on Customer service and Stakeholder centricity.

We encourage all EPFO employees and officials to familiarize themselves with the contents
of this manual and to refer to it whenever needed. It serves as a valuable tool for both new
recruits and experienced professionals, promoting a unified approach to handling exemption
cases.

We hope that you find this Exemption Division Manual to be a valuable resource in your
journey to ensure a secure and prosperous future for all the EPF beneficiaries across the
nation. Your commitment and dedication to this noble cause is deeply appreciated. Thank
you for your service and unwavering support to EPFO's mission.

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ACKNOWLEDGMENT
The drafting, review and design of Exemption Division Manual would not have been
possible without the tremendous efforts by all officers of the division. At the outset we
would like to thank our CPFC for her continuous guidance and motivation without
which the Manual would not have seen the light of day.

The Manual has been successfully co-authored by Shri. Saurabh Suman Prasad -
Regional Provident Fund Commissioner – I, Shri. Subodh – Regional Provident Fund
Commissioner – II and Shri. Nella Raga Tarun – Assistant Section Officer.

The team has worked under the guidance of Shri R.M Verma - Additional Central
Provident Fund Commissioner Head Quarters (ACC – HQ, Exemption Division) and
Shri P. Veerabhadra Swamy – Additional Central Provident Fund Commissioner (ACC,
Exemption Division).

We would like to take this opportunity to also thank Shri. Uttam Prakash Regional
Provident Fund Commissioner – I for providing valuable inputs from time to time.
Lastly the team is thankful to Shri Uday Baxi (Additional Central Provident Fund
Commissioner, Zonal Office, Kanpur) for preparing the initial drafts during his tenure
as ACC (Exemption) in Head Office.

PURPOSE OF THE MANUAL

To foster transparency, consistency, and excellence in the way EPFO
manages exemption cases and serves its valued stakeholders.

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Table of Contents
1
1. Introduction ................................................................................................. 7
1.1 Context & Historical Background ........................................................................................ 8
1.2 Key Statutory Milestones ..................................................................................................... 8
1.3 The Legal Administration Contours ...................................................................................12
1.4 Exemptions and its Types ................................................................................................... 15
1.5 Definitions .......................................................................................................................... 18
2. Grant of Exemption ..................................................................................... 21
2.1 Introduction ........................................................................................................................21
2.2 Conditions of Exemption ...................................................................................................21
2.3 Stakeholder Roles & Responsibilities ............................................................................... 24
2.4 Specific Procedure ............................................................................................................. 26
2.5 Miscellaneous .................................................................................................................... 28
3. Regulation & Management of Exempted Establishments ............................ 30
3.1 Introduction ....................................................................................................................... 30
3.2 Stakeholder Roles & Responsibilities ............................................................................... 30
3.3 Process Flow ...................................................................................................................... 33
4. Cancellation of Exemption ...........................................................................37
4.1 Introduction ....................................................................................................................... 37
4.2 Trigger Points .................................................................................................................... 37
4.3 The Legal Framework........................................................................................................ 38
4.4 Stakeholder Roles and Responsibilities ............................................................................ 39
4.5 Process Flow .......................................................................................................................41
4.6 Exceptional Circumstances ............................................................................................... 43
4.7 Hearing of Court Cases ...................................................................................................... 44
5. Surrender of Exemption ............................................................................. 50
5.1 Surrender of Exemption .................................................................................................... 50
5.2 Stakeholder Roles & Responsibilities ............................................................................... 50
5.3 Process Flow ...................................................................................................................... 52
6. Third Party Audit & Compliance Audit ........................................................ 56
6.1 Third Party Audit ............................................................................................................... 56
6.2 Scenarios and Prescribed Performa for Third Party Audit .............................................. 57
6.3 Format for Third-Party Audit ........................................................................................... 57
6.4 Compliance Audit .............................................................................................................. 58
7. Governance Structure.................................................................................. 61
7.1 Need for a Governance Structure ...................................................................................... 61
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 7.2 Existing Governance Structure ......................................................................................... 61
7.2.1 Head Office .................................................................................................................. 61
7.2.2 Exempted Establishment Committee......................................................................... 63
7.2.3 Central Board of Trustees ........................................................................................... 64
7.2.4 Zonal Office ................................................................................................................. 65
7.2.5 Regional Office ............................................................................................................ 66
7.3 The Matrix of Timelines .................................................................................................... 66
7.3.1 Timelines and Responsibilities for Cancellation of Exemption ................................. 67
7.3.2 Timelines and Responsibilities for Regulation & Management of Exempted
Establishments .................................................................................................................... 67
7.3.3 Timelines and Responsibilities for Grant of Exemption ............................................ 68
7.3.4 Timelines for Grant of Permission to start compliance as an Unexempted
establishment ....................................................................................................................... 68
7.3.5 Timelines for Agenda preparation for consideration of appropriate Government ... 69
7.4 The Monitoring Mechanisms & Tools ............................................................................... 69
8. Forms and Templates ..................................................................................74

Glossary
CA Counter Affidavits
CBT Central Board of Trustees
CDSL Central Depository Services (India) Limited
ECR Electronic Challan cum Return
EEC Exempted Establishments’ Committee
EPF & MP Employees Provident Fund and Miscellaneous Provisions Act, 1952
Act
EPF Scheme Employees Provident Fund Scheme, 1952
FCA Fellow Chartered Accountants
FO interface Field Office Interface
GSR General Statutory Rules
HO Head Office
ICAI Institute of Chartered Accountants of India
KYC Know Your Customer
NCLT National Company Law Tribunal
NDC National Data Centre
NSDL National Securities Depository Limited
PA Past Accumulation
PF Provident Fund
RO Regional Office
SDS Special Deposit Scheme
SOP Standard Operating Procedure
TRRN Temporary Return Reference Number
ZO Zonal Office
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CHAPTER 1

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1. Introduction
a. The Employees’ Provident Fund (EPF) Scheme]1 is a mandatory social security
legislation for the working-class population of India. It is administered by the
Employees' Provident Fund Organisation (EPFO), the statutory arm of the Government
under the Ministry of Labour and Employment. The scheme aims to provide social
security and financial stability to employees after their retirement and acts as a
financial cushion to various contingencies during the lifetime.

b. Under Section 17 of the EPF & MP Act 1952]2, establishments can be permitted to
manage any or all the schemes under the EPF & MP Act 1952 for their employees. Such
establishments are known as “Exempted establishments”. Exemption is granted by the
Appropriate Government on a basic precondition that the rules of the Provident Fund
with respect to the rates of contribution of such an establishment are not less
favourable than those specified in Section 6 and the employees are in enjoyment of
other Provident Fund benefits which are again not less favourable than the employees
of the other establishments of a similar nature.

c. Regulation of the exempted establishments and their Trusts by EPFO ensures that their
employees do not suffer any disadvantage, simply on account of the establishment
having been accorded the privilege of maintenance of its own fund without having to
undergo the rigours of regular remittance of the statutory dues of its employees to
EPFO. Thus, at the core of the legislation is the ‘worker’ whose interest is supreme. As
such exemption to establishments and its regulation thereof only provides a level
playing field between a publicly delivered service and a privately managed service.

d. As on 01.04.2023 the total number of Exempted Establishments having link to file

online returns stands at 1305.

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1.1 Context & Historical background
This manual is an attempt at a consolidation of the various procedures and steps involved in
the grant, regulation cancellation and surrender of exemption from the EPF Scheme as
indicated in their respective standard operating procedures. This would enable all
stakeholders namely Establishment, Employer and EPFO to effectively perform their
respective duties by referring to this manual as a single source.

The fag end of the year 1951, witnessed the promulgation of the Employees' Provident Funds
Ordinance to provide for the institution of provident funds for employees in the factories and
other establishments in India. This was later replaced by the Employees' Provident Funds Act,
1952(Act) beginning 4th March 1952.

Under section 5 of the Act, The Employees’ Provident Funds Scheme, was framed. This
scheme first came into force on the 1st of November 1952. Since then, the day has been
rechristened as the EPFO foundation day.

Section 17 of the Act empowers the Appropriate Government to grant exemption prospectively
or retrospectively to an establishment to which the Act applies or to any establishment. The
provision was amended in 1988, allowing grant of exemption only after consultations with the
Central Board. Since 01.10.1988 the procedural aspect of the scheme has remained
unchanged.

1.2 Key Statutory Milestones

Year Statutory Milestones

Besides the introduction of the provisions related to exemption under

Section 17]3 of the Act, the provisions for granting exemption to a class of
1953
employees was provided in Para 27A of the Employees’ Provident Fund
Scheme 1952. The provisions of the exemption for the class of employees
under Para 27A deemed to have come into force with effect from 31st
October 1953.

The word “establishment” was added by substitution in the Section 17(1) (a)
and in the Section 17(2) making the provisions specifically applicable to an
establishment to which the Act applies, both for the purpose of the
1956 exemption to the establishment as a whole or to a class of employees.
Similarly, the word “establishment” was added by substitution in the Section

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Year Statutory Milestones

17(1) (b) making the provisions specifically applicable to any other

establishment, if the benefits provided to their employees, separately or
jointly were on the whole were more favorable than the benefits under the
Act.

The word “Factory and other establishments” was added by substitution in

Para 27A (1) enlarging the scope of application to factory workers where the
1957
EPF scheme applies. Correspondingly, the word “Factory and other
establishments” was also added in the proviso to Para 28 (3), which deals
with the transfer of accumulations from existing provident funds.

An explanation was added below the Para 28(2) of the EPF Scheme 1952,
which explained that the provident fund trusts are required to transfer even
1958
undistributed interest on the date of transfer of accumulations or
realized/realizable prior to the date the securities are actually transferred in
the name of the CBT, EPF

1960 Through an amendment of Para 28 (3), the role of erstwhile “Imperial Bank
of India” was replaced to “State Bank of India”.

1961 The power to grant exemption in respect of class of employees under Para
27A of the EPF scheme was delegated to the Appropriate Government.

The statutory duties of the employer of an exempted establishment, which

has been granted exemption for the whole establishment, class of its
1963
employees or any individual employee, were defined in Section 17(3) of the
EMP & MP Act 1952.

With effect from 30th November 1963, the provisions for cancellation of
exemption were added by institution of Section 17(4) in the EPF & MP Act
1952. The provision under 17 (4) (b) made it operational to such
establishments which has been granted exemption under Section 17(2) also.
With effect from 18th May 1963, the provisions for grant of exemption to an
individual member under Para 27 of the EPF Scheme 1952 was added by
substitution.

By amending the Section 17(4) (aa), the scope for cancellation of exemption
was enlarged by applying the same to the exemption granted under erstwhile

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Year Statutory Milestones

Family Pension Scheme 1976. Section 17(4) (aa) was further modified in
1988 by specifically adding by substitution Section 17(1C), which deals with
1971
Pension exemption.

Statutory provisions were amended in Section 17(5) which provides that

upon cancellation of any exemption, the amount of accumulation standing to
the credit of every employee be transferred within such time as provided in
the Scheme.

The Employee’s Deposit-Linked Insurance Scheme]4 came into operation in

1976. Statutory provisions were amended in Section 17(2A) and 17(2B) for
providing exemption from EDLI 1976 to any establishment if their Insurance
benefits were at par or more favorable than the EDLI 1976.

Section 17(4)(c) was instituted with effect from 01st August 1976 to provide
for the cancellation of exemption granted to an establishment from the
operation of the EDLI Scheme 1976.

The statutory duties of the employer of an exempted establishment, which

1976
has been granted exemption from the EDLI 1976 for the whole
establishment, class of its employees or any individual employee, were
defined in Section 17(3A) of the EMP & MP Act 1952.

The Section 17(5) was suitably amended for transferring the accumulations
standing to the credit of every employee when the exemption from the
Insurance scheme is cancelled.

Through an amendment of Para 28 of the EPF Scheme, the role of an

authority entrusted with the management of any provident Fund was further
enlarged by adding the provisions of Section 17(5). This enables for the
1985 receipt of Past accumulations statement showing the amount standing to the
credit of each subscriber on the date of such transfer within time specified in
the scheme.

Time periods were prescribed for transferring the accumulations as well as

the statement showing the amount standing to the credit of each member by
amending Para 28(1) (a).

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Year Statutory Milestones

Section 17(1A) was added on 01st October 1988. This provided that no
exemption shall be made without consultation with the Central Board. The
same amendment also provided for the application of Section 6, 7, 8 and
1988 Section 14 including 14B on the employer of an exempted establishment.
Statutory provisions regarding the constitution of a Board of trustees, its
terms and conditions of their trustee members as well as their primary
responsibilities were also institutionalized.

As a substitution of Section 17(2A), the power to grant exemption from EDLI

Scheme 1976 was delegated to the Central Provident Fund Commissioner.

By amending the Section 17(4) (a), the scope for cancellation of exemption
was enlarged by covering the defaults by the employer against the provisions
of Section 17(1), Section 17(1A) or the defaults by the Board of trustees
against the provisions of Section 17(3) for such cancellation.

Section 17(5) was amended for transferring the accumulations standing to

the credit of every employee when the exemption from the Pension scheme is
cancelled. Further in 1996, after inception of EPS 1995]5, it was modified to
substitute from “family pension” to “Pension”.

By amending the Section 17(5), it was provided to transfer even the forfeited
amount from the employer’s share of contribution to the credit of an
employee who leaves the establishment before completion of full period of
service.

The statutory provisions were amended in Section 17(1C) by substitution for

providing exemption from EPS 1995 to any establishment or class of
1996
establishments if their pensionary benefits were at par or more favorable
than the EPS 1995. Such substitutions indicate that such provisions were
available in respect of Family Pension Scheme 1976 that was merged into
Employees’ Pension Scheme of 1995.

2000 With effect from 06th January 2001, the Para 27AA was instituted in the EPF
Scheme 1952, defining terms and conditions of exemption.

2003 Appendix A to the Para 27AA of the EPF Scheme was substituted with effect

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 Year Statutory Milestones

from 30th October 2003 with a checklist of 31 conditions.

2012 Condition no. 16 of the Appendix-A to the Para 27AA of the EPF Scheme
1952 was amended to provide for the electronic format of the returns to be
filed by the exempted establishment.

The Central Board of trustees approved an easy process for the cancellation
of exemption by way of surrender]6 if the Board of Trustees desired
2016
surrender of exemption.

The Code on Social Security 2020]7 got Presidential assent. The exemption
provisions of the code yet to be notified, intends to infuse the concept of
2020
renewable exemption after every prescribed period instead of existing
provisions of enjoying exemption till the same is formally cancelled.

1.3 The Legal Administration Contours

a. The legal framework for the provisions related to Exemption is indicated under
Section 17]8 of the Act which is the overarching statutory provision governing all
aspects of Exemption. The corresponding enabling provisions are provided in the
Scheme (EPF Scheme,1952 as defined in Section 2(l) of the Act).

b. The Exemption from the EPF Scheme is granted by the Appropriate Government, on
an application by an establishment if its proposed scheme is not less favourable than
the statutory benefits provided under the Act and the EPF Scheme. EPFO acting as
the agency of the Appropriate Government monitors the functioning of the exempted
establishments.
c. The terms and Conditions, of exemption, is indicated in Section 17(1A)(b),(d) and
Section 17(3) of the Act read with Para 27AA of the EPF Scheme,1952 with a
provision for additional conditions as considered appropriate by the Appropriate
Government.

d. Regular Audits are conducted to see that conditions prescribed are not violated. In
the event of non-compliance of the terms and conditions of the Exemption
cancellation of such exemption is provided under Section 17(4) of the Act.

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 e. The consequence of cancellation is a statutory obligation cast upon the
establishment to transfer the entire corpus of its PF Trust to the accounts of the
Central Board of Trustees, EPF as per the provisions of Section 17(5) of the act read
with Para 28 of the EPF Scheme. This is done by way of a formal report originating
from the Regional Provident Fund Commissioner and subjected to rigorous scrutiny
before it is put up to the Appropriate Government for an informed decision as
regards cancellation by way of a gazette notification.
f. Besides cancellation of exemption, other actions as stipulated under the Act can also
be initiated to ensure that the interests of the workers remain protected.
g. The cancellation can also take the route of surrender, which is a voluntary action by
an exempted establishment to hand over the responsibility of managing the Trust
Fund back to EPFO. Thus amidst the vagaries of an uncertain business climate and
the fluctuations in the Capital market this has been found to be the preferred option
for the employers’ of exempted establishment keen on concentrating on their core
business and leaving the statutory task of managing the retirement corpus of their
employees to EPFO.
h. A subcommittee of the Central Board called “Committee on Exempted
Establishments”]9 constituted by Chairman CBT monitors and guides the
functioning of Exempted establishments in the country. Further the committee also
ratifies the proposals of grant, cancellation and surrender of exemption for their
placement before the CBT as a precursor to their final approval by the appropriate
Government.
f. A brief overview of the Act and Scheme provisions which lay down the legal
framework and are relevant to the context of Exemption are explained below.
i. “Act” means the Employee’s Provident Fund and Miscellaneous Provisions act,1952
ii. “Scheme” means the Employee’s Provident Fund scheme framed under Section 5 of
the Act and as indicated in Section 2(l) of the Act.
iii. “Appropriate Government” means the appropriate Government as defined in
Section 2 of the Act and explained as below
a. Central Government for the establishments under the control of the Central
Govt. or in relation to an establishment connected with a railway company, a
major port, a mine or an oil-field or a controlled industry or in relation to an
establishment having branches in more than one state, and
b. (b)State Govt in relation to any other establishment.

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iv. “Employer” as defined in Section 2(e) of the Act means
a. in relation to an establishment which is a factory, the owner or occupier of the
factory, including the agent of such owner or occupier, the legal
representative of a deceased owner or occupier and, where a person has been
named as a manager of the factory under clause (f) of sub-section (1) of
section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and
b. in relation to any other establishment, the person who, or the authority
which, has the ultimate control over the affairs of the establishment, and
where the said affairs are entrusted to a manager, managing director or
managing agent, such manager, managing director or managing agent;]
v. (v)” Employee” as defined in Section 2(f) of the Act means any person who is
employed for wages in any kind of work, manual or otherwise, in or in connection
with the work of 6 [an establishment], and who gets his wages directly or indirectly
from the employer, and includes any person
(a) employed by or through a contractor in or in connection with the work of the
establishment;
(b) engaged as an apprentice, not being an apprentice engaged under the
Apprentices Act, 1961 (52 of 1961), or under the standing orders of the
establishment;]
vi. “Exempted employee” as defined in Section 2(ff) of the act means an employee to
whom a Scheme [or the Insurance Scheme, as the case may be,] would, but for the
exemption granted under*** section 17, have applied;
vii. “Exempted establishment” as defined in Section 2(fff) of the Act means an
establishment in respect of which an exemption has been granted under section 17
from the operation of all or any of the provisions of any Scheme 2 [or the Insurance
Scheme, as the case may be, whether such exemption has been granted to the 4
establishment as such or to any person or class of persons employed therein
viii. “Fund” as defined in Section 2(h) of the act means the provident fund established
under a Scheme
ix. “CBT” refers to the Central Board as indicated in Section 5A of the Act.
x. Section 14(2A) relates to prosecution upon violations of conditions of Exemption
xi. Section 17(1) (a) &(b) relates to the appropriate Govt’s powers to grant exemption
to establishments only when their employees are in enjoyment of benefits as regards
rate of contribution as specified in Section 6 and in the nature of PF, Pension and

14
 Gratuity which are on the whole not less favourable than those provided by EPFO,
respectively.
xii. Section 17(1A)(a-d) refers to the applicability of Section 6,7A,8 and 14B on
exempted establishments, the establishment of a Board of trustees to manage the PF
of its employees ,its terms and conditions and the duties to be performed by them.
xiii. Section 17(2) refers to the exemption for a class of employees
xiv. Section 17(3) refers to the duties and the conditions of exemption mandated for
the exempted establishments
xv. Section 17(4) indicates the provisions relating to cancellation of exemption
xvi. Section 17(5) relates to the provisions regarding transfer of Past Accumulations of
the employees of establishments whose exemption has been cancelled.
xvii. Paragraph 27 of the EPF Scheme is the enabling scheme provision for Section
17(2) of the Act and refers to the exemption granted to a single employee.
xviii. Paragraph 27A of the EPF Scheme is the enabling scheme provision of Section
17(2) of the Act and refers to the exemption granted to a class of employees.
xix. Paragraph 28 is the enabling scheme provision of Section 17(5) of the Act and
indicates the transfer of Past accumulation of the employees of establishments
whose exemption has been cancelled.
xx. Paragraph 27AA, Appendix” A” indicates the Conditions of exemption which are
applicable to all exempted establishments and which are undertaken to be followed
by the establishments seeking exemption.
xxi. Para 79 relates to grant of relaxation to establishments
xxii. Para 79-B relates to the time period for the Central board to communicate its views
to the appropriate Government.
xxiii. Para 79-C indicates the composition of the Board of trustees and their terms and
conditions of service.

1.4 Exemptions and its Types

a. Exemption from the EPF Scheme can be broadly classified into three categories.
 Exemption for the establishment as a whole,
 Exemption for a class of employees and
 Exemption for a single employee.

b. The corresponding statutory provision is indicated under Section 17(1) of the Act]10, Section
17(2) of the Act read with Para 27A and Para 27 of the Scheme, respectively. In the

15
 upcoming Social Security Code, 2020]11 the provisions for exemption from the EPF Scheme
is indicated in Section 143 of the Code.

c. Thus Section 17 of the EPF Act is pari materia to Section 143 of the Social security code.
However irrespective of the finer points of the two legislations, the intent of the lawmakers
remains unambiguous i.e. quality service to the working class matching the global
standards through a competitive interplay between a publicly managed service and
privately controlled entities who possess the financial wherewithal to match the benefits
given by EPFO.

d. The exemptions granted under the EPF Act is predicated upon the fact that the quantum of
benefits which the establishment provides in the nature of PF, Pension or Gratuity or as
regards the rate of contribution to the fund for its beneficiary employees should in no way
be inferior to that being provided by EPFO to its subscribers. Further the exempted
establishments are required to abide by the conditions of exemption provided in Para
27AA Appendix “A” of the Scheme. Lastly the establishments are under a statutory
obligation to transfer the Past Accumulation of its beneficiary employees to the Fund
under the EPFO once the exemption is cancelled.

e. It will however, be pertinent for the sake of continuity, to provide here a brief overview of
the law of exemption under the new Social Security Code. Consequent to the inception of
the Social Security Code 2020 the draft rules 2020 pending formal notification proposes
the following preconditions for exemption:
i. the employees are in receipt of benefits substantially similar or superior to the
benefits granted in the EPF scheme;
ii. the establishment seeking exemption has been complying with the provisions
of the Code or the Employees’ Provident Funds and Miscellaneous Provisions
Act, 1952 for a period of three years continuously immediately before making
the application and has not defaulted in payment of contribution payable
during such period;
iii. the establishment seeking exemption should have minimum five hundred
contributory members on the date of such application;
iv. the establishment seeking exemption from the provisions of the Provident
Fund Scheme should have a cumulative balance in members account of rupees
fifty crore or more;

16
 v. the establishment seeking exemption should have a positive net worth during
each of the last three years before the date of application;
vi. the establishment must have seeded the Aadhar Number of each of the
member in the respective members’ account
vii. the establishment shall provide facilities for online claim settlement and has
an online portal for grievance resolution to provide linkages with that of
Employees’ Provident Fund Organisation within ninety days of grant of
exemption.

f. There are three types of exemptions namely Establishment-based exemption:

Employee-based exemption and special concessions for Start-ups and new
establishments.
i. Establishment-based exemption: Under the new Social Security Code, an
establishment can be exempted from contributing to the EPF if it provides a
comparable or better than the benefits provided under the EPF scheme.
Exemption can be granted for a period of up to three years, with a provision
for subsequent renewals.
ii. Employee-based exemption: Individual employees can be exempted to
contribute to the EPF if they meet certain criteria.
iii. Start-ups and new establishments: The Social Security Code provides for
certain exemptions and incentives for start-ups and new establishments. These
include a lower rate of contribution to the EPF for the first three years of
operation, as well as a waiver of the employer's contribution to the EPF for the
first three years for certain categories of employees.

17
 Figure 1: Types of Exemption under Social Security Code

1.5 Definitions
For the purpose of this manual the following terms will be defined as indicated in this
paragraph.
1. “Act” means The Employees’ Provident Funds and Miscellaneous Provisions Act,
1952.
2. “ACC” means the Additional Central Provident Fund Commissioner or the
Additional Central Provident Fund Commissioner (HQ) of the Zone.
3. "Appropriate Government" means, the appropriate Government as defined in
Section 2(a) of the Act.
4. “BOT” means the Board of Trustees constituted as per the provisions under Para
79C of the EPF Scheme, 1952.
5. “CBT " means, the Central Board as provided under Section 5A of the Act.
6. “Common Provident Fund Trust” means a Trust with two or more
participating establishments with at least one representative each from the
participating establishment.
7. “Compliance Audit” means the annual audit of an exempted establishment in a
designated proforma by a team of officers from the R.O in whose jurisdiction the
exempted establishment is located.
8. “Condition(s)” means conditions of exemption as indicated in the “Appendix A”
of Para 27AA of the Scheme.

18
9. “Depository participants” means the registered agent or stockbroker of the
depositories like NSDL and CSDL which maintain the ownership records of the
investors.
10. “Draft Agenda”]12 refers to the prescribed format meant for the Regional Offices
to forward its recommendations or rejections for grant of exemption to Zonal
Offices and Head Office for consideration of the EEC.
11. “EEC” means the Exempted Establishments Committee of the CBT.
12. “Employer” means the Employer as defined in Section 2(e) of the Act.
13. “Exempted Establishment” means an establishment in respect of which an
exemption has been granted under section 17 from the operation of all or any of the
provisions of EPFC Scheme whether such exemption has been granted to the
establishment as such or to any person or class of persons employed therein.
14. "Exemption" means an exemption within the meaning of Section 17 (1) and 17 (2)
of the Act.
15. “PA” means the Past Accumulations as indicated in section 17(5) of the Act read
with Para 28 of the Scheme.
16. “Priority Matrix” means the categorisation of the violations of conditions of
exemption and the desirable consequential actions in FORM CE-6
17. “Regional Provident Fund Commissioner (RPFC)” is the RPFC-In-Charge of
the Region in whose jurisdiction the establishment is covered under the Act.
18. “Relaxation” means a Relaxation granted under Para 79 of the Scheme.
19. “Relaxed Establishments” means, the establishment who have been granted
relaxation under Para 79 of the EPF Scheme, 1952 by the Commissioner as defined
in Section 5D of the Act.
20. “Scheme” means the Employees’ Provident Fund Scheme, 1952 framed under
Section 5.
21. “Standard Operating Procedure” (SOP) means the specific procedure to be
followed with respect to the process of Grant of Exemption, Management and
Regulation of EPF Exempted Establishments, Cancellation of Exemption and
Surrender of Exemption.

19
CHAPTER 2

20
 2. Grant of Exemption

2.1 Introduction
a. The basic premise of exemption from the EPF Scheme is predicated on the ability of
any establishment to match the benefits provided by EPFO to its subscribers. Such
comparable benefits can be as regards the rate of contribution as indicated in Section 6
of the Act or in the nature of Provident Fund, Pension or Gratuity which on the whole
should not be less favourable than the benefits under the EPF Act and the Scheme.

b. Establishments that seek to maintain their own Provident Fund Trusts apply for grant
of exemption under Section 17 of the EPF & MP Act, 1952 (Act). While exemption for
the establishment as a whole is regulated by Section 17(1) of the EPF Act, the
exemption for a class of employees is regulated by Section 17(2) of the Act; the enabling
provision enshrined in Para 27A of the Scheme while Para 27 of the Scheme deals with
the grant of exemption to a single employee by the RPFC.

c. The grant of exemption]13 is however subject to the fulfilment of the Conditions of

Exemption indicated in Section 17(1A) and 17(3) while the enabling provision in the
Scheme is provided under Para27AA Appendix “A” of the Scheme

2.2 Conditions of Exemption

From the perspective of an employer of an establishment seeking to obtain exemption
from the statutory obligations related to monthly remittance of the PF contributions of
their employees under the Scheme, an application based on compliance with the
Conditions of exemption is a sine qua non of the entire process. The said conditions as
defined in Section 1.5 of this Manual is delineated in detail under Appendix “A” of Para
27AA of the Scheme. An overview of these conditions which have been classified into four
categories is indicated in FORM GE-1(9) of the Chapter 8 of this Manual.

21
 CONDITIONS OF EXEMPTION AS PER APPENDIX ‘A’
TO PARA 27AA OF THE EPF SCHEME, 1952

(For Reference)
Board of Trustees Establishment/Employer

Condition BOT to meet in every Condition Constitution of BoT

no.2: three months no.1:

Condition Enrolment of all eligible Condition Transfer of Previous accumulations

no.3: Employees no.4: (From past service to Trust).

Condition no. Benefits to be not less Condition Monthly contributions to the trust
9: favorable than EPFO as no.5: by 15th of the succeeding month
regards rate of
contributions, interest Condition Establishment to make good the
etc. and quantum of no.6: loss suffered by the Trust.
advances
Condition Trust to at least match the
Condition no. Beneficial rules to apply no.7: statutory rate of interest
10: automatically
Condition Trust rules to be displayed on
Condition To maintain Electronic no.8: notice board
no.13: accounts of employee
contributions Condition Timely filing of monthly/annual
no.16: returns
Condition Investments to be made
no.17: as per GOI Guidelines Condition Establishment to submit
no.22: undertaking to abide by the
Condition Securities to be in the conditions of exemption to RPFC
no.18: Trust’s name and kept
in Demat Account with Condition no Establishment to submit
RBI approved 23: undertaking to transfer past
Depositary Participants accumulations in the event of
cancellation of Exemption to RPFC
Condition no. Directions for
19: Depository participants Condition Trust Balance Sheet submission to
to transfer the Trust no.24(b): RPFC
Investment to RPFC
under certain Condition The same auditor not to be
conditions no.24(c): appointed for 2 consecutive years
& for not more than 2 times in a
block of six years

Condition Establishment to make good the

no.28: loss arising out of fraud/wrong
investment etc. to the Trust

Condition Mandatory revocation of

no.29: Exemption under certain
conditions

22
 Employees EPFO

Condition no. Entitled for a time Condition no.11: RPFC’s mandatory permission
12: bound Settlement of for amendment in the rules
claims.
Condition The Investments can be
Condition no. Entitled for a no.20: liquidated for obligatory
14: Passbook facility to expense only upon RPFC’s
be provided by the Permission
Trust.
Condition Third Party Audit to be done
Condition no. Entitled for a facility no.24(a): upon RPFC’s orders
15: to view Balance on
computer terminals Condition no.25: To check for 3-year
continuous loss
Condition no.26: To cause Compliance Audit

Condition no.27: To initiate cancellation

procedure only after a show
cause notice

Condition RPFC to take Legal action in

no.30: case of a default against all
the Trustees of a Common PF
Trust
Central Government
Condition no.31: Further Conditions

23
2.3 Stakeholder Roles & Responsibilities

Figure 2:Key Stakeholders for Exemption

Each stakeholder has a pre-determined set of roles to play so as to achieve the aim of a
hassle-free disposal of the application for Grant within the time limit permitted under the
Scheme.

Stakeholder Responsibility

Establishment  Has to constitute a Trust and formulate the Trust Rules based
on the conditions of exemption.

 Further an application has to be made in a standardized

format within the parameters set by the appropriate
government duly enclosing a comparative statement
indicating that the benefits allowed to its beneficiaries are at
least at par with the benefits provided by EPFO to its
subscribers.

Regional Office  Shall receive the application, scrutinize it thoroughly and send
(RO) the Draft proposal to Z.O

 The draft proposal should be sent only after due certification

of the fact that the benefits provided by the applicant
establishment are no less favourable than what is being

24
 Stakeholder Responsibility

allowed by EPFO to its subscribers.

Zonal Office  The Zonal Office (ZO) shall forward the Draft agenda proposal
(ZO) to H.O. with its recommendations.

 The Zonal ACC can also exercise his/her discretion as regards

the Grant of Relaxation to the applicant establishment within
the meaning of Para 79-C of the Scheme.

Head Office (ZO) Exemption Division shall scrutinize the draft agenda proposal for
grant of exemption and place its recommendations before the
EEC.

The Exempted Shall decide about the suitability of the proposal and submit its
Establishment views to the CBT through the Head Office Exemption Division.
Committee
(EEC)

The Central The Central Board (CBT) shall finalize its views for onward
Board (CBT) communication to the Appropriate Government through the HO
Exemption Division

Appropriate Takes a considered decision upon the views of the CBT as regards
Government the case and in case of its assent the process culminates in the
issuance of a Gazette notification for Grant of exemption to the
establishment.

25
2.4 Specific Procedure

STAKEHOLDER: ESTABLISHMENT

LIST OF ACTIVITIES

 The establishment shall make an application in FORM GE-1 after a due

diligence at its end as regards compliance with the conditions of exemption.

 To that effect, the employer shall constitute a BOT under his chairmanship
and the terms and conditions of the Trustees shall be as per the provisions of
Para 79-C of the Scheme.

 The BOT shall primarily be concerned with the maintenance of accounts of

each employee beneficiary of the Trust duly indicating the contributions made,
the withdrawals effected, and the interest accrued. It should further submit
such returns as directed by the RPFC, invest the P.F corpus and effect transfer
of the PF. Account of the employee beneficiaries as soon as it becomes due.

 The application Form GE-1 should be compulsorily accompanied with two

copies of the duly signed Trust rules indicative of the definition of the “class of
employees” if exemption is sought under Section 17(2).

 A comparative chart of the benefits vis a vis EPFO, full details of the Trustees,
certificates of undertaking as indicated in the conditions of exemption and the
details of its departments and branches.

26
STAKEHOLDER: REGIONAL OFFICE

LIST OF ACTIVITIES

 The RO shall facilitate submission of a complete form with all the

documentation.

 It shall evaluate the FORM GE-1 on the twin criteria of compliance with the
conditions of exemption and a certification with respect to the fact that the
benefits being provided by the applicant establishment are not less favourable
than the benefits provided by EPFO to its subscribers.

 It shall prepare the Draft Agenda and along with the Draft agenda RPFC shall
send his/her recommendations in FORM GE-2 within 10 weeks from the
receipt of the application.

 However, in case the proposal is unfit, a negative recommendation shall be

sent.

STAKEHOLDER: ZONAL OFFICE

LIST OF ACTIVITIES

 The ZO shall certify the fitness of the Draft agenda for placement before the
EEC and shall send it to H.O Exemption division along with its
recommendations in FORM GE-3

 Within 15 days of receipt of proposal from RO. Simultaneously ACC of the

Zone shall issue an order of Relaxation under Para 79 of the Scheme.

27
 STAKEHOLDER: HEAD OFFICE

LIST OF ACTIVITIES

 ACC (Exemption Division) shall evaluate the proposal for grant of exemption
and with the approval of CPFC shall place it before the EEC for its
consideration preferably within 1 month of the receipt of FORM GE-3 from the
ZO.

 Subsequent to its ratification the proposal shall be placed before the CBT for
its approval. It shall be the duty of ACC (Exemption Division) H.O to
communicate the recommendations of the CBT to the appropriate government
in FORM GE-4 for a formal notification in the Gazette.

2.5 Miscellaneous
Transfer of Past Accumulation in case of grant of exemption or exclusion:

The CBT, in its 163rd meeting held on 19.08.2003 decided that after the grant of exemption or
in any other eventuality necessitating transfer of past accumulations to an establishment or
Trust, or excluded establishments, entire past accumulations be transferred in cash only in all
cases. Securities will not be transferred by Head Office in exclusion cases too.

28
 CHAPTER 3

29
 3. Regulation & Management of
Exempted Establishments
3.1 Introduction
This chapter aims to lay down the essential guidelines necessary for the management of
exempted establishments and the regulation]14 thereof by EPFO based on the statutory
provisions indicated in the Act and the Scheme. The scheme of the exempted establishment
functions within the ambit of the Act; as such the framework for its proper functioning is
similar to the EPF Scheme under the Act.

The management and regulatory processes are however a subset of the Conditions of
exemption delineated under Para 27AA Appendix “A” of the EPF Scheme. The said conditions
are unique in the sense that its 31 clauses constitute a comprehensive treatise on functional
and compliance guidelines ranging from the constitution of the BOT, its operational
parameters, the nature of its beneficiaries, the duties of the employer towards the beneficiary
employees and lastly its statutory obligations vis a vis EPFO functioning as a regulator of PF
Trusts in the exempted establishments.

3.2 Stakeholder Roles & Responsibilities

Stakeholder Roles & Responsibilities

 Manage their Trust fund as per the guidelines set by the EPFO
which functions as a statutory regulator. Thus the primary
stakeholder has to be the establishment and the Board of
Trustees

 Has to undertake to abide by the Conditions of exemption and

has to constitute a BOT as per the statutory guidelines

 Facilitate inspection, pay the inspection charges, submit online

30
 Stakeholder Roles & Responsibilities

returns within time, ensure seamless service for its beneficiary

employees and adhere to the disclosure norms set by the statute
as regards its annual report and the accounts of the Trust Fund.

 Any business occurrence which may entail a change in its legal

status shall be promptly informed to the RPFC.

 The BOT in turn is responsible for the receipt of the monthly

remittances, maintenance of the detailed account of its
beneficiary employees, submission of returns and investment of
the PF money in designated instruments as per the notified
pattern of investment
Establishment
 It also has important roles vis a vis its beneficiaries as regards
transfer in and out of their accounts whenever due and ensuring
non reduction of the total quantum of benefits vis a vis EPFO

 Its duties towards financial disclosure and reportage as regards

its profitability is coterminous with that of the establishment.

 Ensure that their compliance machinery pertaining to exempted

establishments’ functions like a well-oiled machine by
deployment of adequate number of trained staff adept in dealing
with its complexities.

 The exemption section shall be responsible for ensuring timely

filing of online returns and a proper monitoring of the online
performance evaluator.

RPFC and RO
 A time bound compliance audit of exempted establishments and
a proper follow up action along with a Third-Party audit of the
Trust Funds as and when considered necessary are also of
utmost importance.

 Timely detection of the existence of the stipulations in Condition

31
 Stakeholder Roles & Responsibilities

No.25 and 29 is a task devolved upon the RO whose importance

can never be overstated. Last but not the least it is expected to be
diligent in a time bound submission of al the reports to ZO.

 Functions as a monitoring office accentuating on a timely filing

of online returns and compliance audit of the exempted
Zonal Office
establishments as well as its follow up actions

 Sends advisories on the basis of the online marks based

performance evaluator of exempted establishments

 Important role to play in the context of the department’s

increasing emphasis on public outreach and capacity building
based on the best practices adopted by the exempted
establishments in the context of fund management and Trust
administration

 Monitoring of ZO’s on the basis of the twin parameters of timely

completion of Compliance audit of exempted establishments and
Head Office
a timely filing of online returns

 HO shall be responsible for outreach programs at a national

scale as well as capacity building both at the internal as well as
external level.

32
3.3 Process Flow
STAKEHOLDER: ESTABLISHMENT

LIST OF ACTIVITIES

 The exempted establishment’s responsibility towards the management of its

exemption is predicated upon its scrupulous adherence to the conditions of
exemption which have a three-fold orientation.

 Responsible for constituting a BOT under his chairmanship which shall

function as per the provisions of Para 79-C (Condition No 1 & 2).

 Responsible for ensuring membership to all the eligible membership and also
facilitate transfer in of his accumulations from his erstwhile employer.
(Condition No.3 & 4).

 Liable to facilitate seamless services in the context of crediting of interest,

claim settlement, issuance of account statement and checking of PF balances.
(Condition No’s 9,12,13,14 & 15)

 Facilitation of EPFO’s regulatory role vis a vis the establishment as well as the
Trust

 Ensure timely remittance of monthly charges, administrative charges and

interest, (Condition No 5,6 & 7). Any beneficial amendment in the Trust
rules shall be adopted automatically.

 Any amendment to the Trust rule shall require the prior permission of RPFC.
(Condition No 10 & 11).

 Ensure timely filing of all returns, adhere to the designated pattern of

investment and maintain its investments mandatorily in the Demat mode in
the name of the Trust, (Condition No 16,17 & 18).

 Undertake due compliance to all the conditions while the depository

participants are requiring to transfer the Trust investments to the RPFC upon
closure or liquidation of the establishment subsequent to a communication

33
 received from him/ her (Condition No 22,23 & 19).

 Adhere to the norms of audit of the Trust’s accounts, the publication of its
report and the appointment of auditors, (Condition No.24)

 Any pecuniary reward shall be credited to the Trust account. (Condition No

21).

 All inspection charges are liable to be paid and any loss to the fund shall be
made good by the employer. (Condition No.26 & 28).

 Condition No.25 entails mandatory withdrawal of Exemption consequent to

a loss incurred by the establishment (not the Trust) for three consecutive years
or upon an erosion in the capital base of the establishment, Condition No 29
has a clause for a mandatory revocation of exemption upon a change in the
legal status of the establishment.

 Condition No 29 has a clause for a mandatory revocation of exemption upon a

change in the legal status of the establishment.

STAKEHOLDER: REGIONAL OFFICE

LIST OF ACTIVITIES

 Lynchpin of the entire regulatory machinery with a well-defined role. ensure

timely filing and the scrutiny thereof of the online returns and a timely
conduct of the compliance audit of the establishment

 Audit should have a separate note on the treatment of Surplus and reserve
Fund as well as the employee service profile of the establishment.

 RPFC also conducts Third Party Audit of exempted establishments on grounds

of reasons which are clearly specified in writing, in a pre-designated format

34
  RPFC shall submit a report to ZO as regards compliance audit of all exempted
establishments under his jurisdiction in a time bound manner.

STAKEHOLDER: ZONAL OFFICE

LIST OF ACTIVITIES

 Function as a monitoring office for monitoring the online return position as

well as the online marks-based performance evaluator of the RO’s

 Compliance audit profile of RO’S shall be monitored at ZO which shall submit

a designated report to HO in a time bound manner.

STAKEHOLDER: HEAD OFFICE

LIST OF ACTIVITIES

 Monitor the performance of the ZO Vis a Vis the position of online returns
filed by the establishments as well as the timely conduct of compliance audit

 Shall conduct outreach programs in consultation with PDUNASS from time to

time.

35
CHAPTER 4

36
 4. Cancellation of Exemption
4.1 Introduction
Exemption is a privilege accorded to establishments which possess the financial heft to match
and sustain the benefits provided to the subscribers of EPF Scheme. However, the privilege is
conditional; it is liable to be withdrawn by the authority which granted it in order to safeguard
the interest of the employee beneficiaries of the Trust, once the conditions of exemption stand
violated. Thus the exempted establishment remains under the constant regulatory gaze of the
appropriate government, enforced through its statutory arm i.e. the EPFO.

Here it needs to be reiterated that the scheme of the exempted establishment remains a
scheme under the Act like the EPF Scheme, 1952, whereby to avoid duplication as well as the
onerous task of framing a scheme for every establishment seeking exemption from the rigors
of making statutory remittance of the PF dues of its employees, the establishment is allowed to
run its own scheme and provide benefits which have to be necessarily not less favorable than
the benefits provided by EPFO, within the limits set by law.

4.2 Trigger Points

37
4.3 The Legal Framework
a. The key legal provision in the EPF Act is Section 17(4) (a) and Section 17(4) (b)
which deals with the various conditions under which exemption is cancelled by the
authority which granted it.
b. Section 17(4)(a) provides for cancellation of exemption granted under Section 17(1)
for non -compliance of the conditions of exemption indicated in sub-section
(1A) and sub-section (3).
c. Section 17(4)(b) provides for cancellation provision for any exemption granted under
Section 17(2) for non-compliance with the conditions of exemption indicated in
sub-section (3).
d. Para 27 AA Appendix “A” of the Scheme indicates the enabling provisions for the
conditions of exemption in Section 17(1A) and Section 17(3)
e. Section 17(5) deals with the provisions of transfer of PA dues in the case of
cancellation of exemption.
f. Para 28 of the Scheme has the enabling Scheme provisions for transfer of PA dues to
the Fund
g. Condition no 19 of Appendix “A” of Para 27AA of the Scheme deals with the
communication to the Depository participants of the Trust Fund to transfer the
investment holdings of the Trust to RPFC upon cancellation of exemption]15, closure of
the establishment or its liquidation.
h. Condition No 25 of Appendix “A” of Para 27AA of the Scheme indicates a mandatory
provision of withdrawal of exemption, if the establishment has incurred losses for three
consecutive years or suffers an erosion in their capital base, from the first day of the next
financial year.
i. Condition No 29 of Appendix “A” of Para 27AA of the Scheme has provision for a
mandatory revocation of exemption upon a change in legal status of the establishment
consequent to a sale, amalgamation, merger, demerger acquisition or formation of a
subsidiary whether wholly owned or not.

38
4.4 Stakeholder Roles and Responsibilities
All the stakeholders namely the establishment, RO, ZO, HO have clear and well-defined roles
while dealing with the process of cancellation.

STAKEHOLDER ROLES & RESPONSIBILITIES

 Under a statutory obligation to report about any business

Exempted activity involving acquisition sale, merger or demerger etc.
Establishment which is essential for the RO, to identify existence of the
stipulations necessitating invocation of Condition No.29.

 Financial reportage involving communication of annual

reports by 30th September every year for the year which
ended in March is important in the context of invocation of
condition no. 25 whenever necessary

 Since the exempted establishments are under a statutory

obligation to transfer the PA dues upon cancellation, their
depository participants are required to transfer the investment
holdings standing under the Trust’s name to the RPFC upon a
communication received from him/her.

 Full disclosure of the depository participant’s details is a

mandatory condition to be followed
 Should maintain a constant vigil as regards timely filing up of
Regional
online returns. Regular scrutiny of the online marking system
Office
also constitutes a mandatory activity.

 Timely action under condition No 19 as mentioned aforesaid

and a time bound deposit of PA dues by the establishment
under Section 17(5) read with Para 28 of the Scheme falls
within its remit

 Identification of the factors necessary for the invocation of

39
STAKEHOLDER ROLES & RESPONSIBILITIES

Condition no 25 and 29 and any violation of the conditions of

exemption through timely conduct of compliance audit and
forwarding Draft agenda to the ZO for cancellation is a
regular operational duty so necessary to secure the interests
of the workers
 Draft agenda to HO with its categorical recommendations and
Zonal Office forward the link removal request from RO to HO with its
recommendations.

 Coordination with the State Govt. if they happen to be the

appropriate Government as regards issuance of notification
for cancellation.

 Scrutinizes the draft agenda received from the ZO and places

it before EEC.

 Recommendations of the EEC are placed before the CBT

Head Office whose views are communicated to the appropriate Govt.
Simultaneously upon cancellation, HO removes the link for
filing of online returns.

40
4.5 Process Flow

STAKEHOLDER: REGIONAL OFFICE

LIST OF ACTIVITIES

 At the RO the process of cancellation can be triggered off by any of the triggers as
mentioned aforesaid and necessitates issuance of a show cause notice in Form
CE-1 to the establishment to be replied within 7 days.

 In case the cancellation process is triggered by the findings of the compliance

audit a show cause notice shall be issued only after a lapse of 15 days’ time given
to reply to the findings of the compliance audit team.

 Based upon the reply of the establishment the mechanism delineated in the
Priority Matrix shall be utilized to deal with the violations of the conditions of
exemption. However, any cancellation draft agenda shall be prepared in the
Form CE-2 and sent within 30 days of the receipt of the reply to the notice in
Form CE-1 with the concomitant documents for it to be deemed as a complete
proposal.

 In case the established is relaxed under Para 79 RPFC can withdraw the
relaxation by using Form CE-1(R).

 Further, in cases where the establishment concedes and offers to give up its
exemption, subsequent to the detection of violations of conditions of exemption
RPFC shall immediately take over the Trust and facilitate compliance with the
provisions of Section 17(5) read with Para 28 of the Scheme as regards
transfer of PA dues to the Fund under CBT and immediate credit of the accounts
of the newly joined subscribers.

 This is done to secure the interests of the workers However the draft agenda of all
such special cases of surrender shall be sent to Z.O only with a Third-Party Audit

41
 report in Form RM-6.
 Cancellations triggered by the operations of the condition No. 25 and 29 shall
necessarily involve mandatory withdrawal of exemption through Form CE-9
and Form CE-10.

 In the case of cancellation involving condition No. 25 the Third-Party Audit shall
be completed by the 31st of December of the FY prior to the 1st April of the year
from which cancellation is being withdrawn.

 In the case of a cancellation process involving Condition no 29 the Third-Party

audit shall be completed compulsorily within two months of the issuance of
Form CE-10. In both the cases however, the draft agenda should compulsorily
be accompanied with the Third-Party audit report

STAKEHOLDER: ZONAL OFFICE

LIST OF ACTIVITIES
 Scrutinize and send the agenda to HO in Form CE-4 within 30 days from
the receipt of the proposal from RO
 Follow up with the appropriate Govt. (if State Govt.) through the forum of
Regional Committee as regards the pending cancellation proposals which have
been recommended for cancellation by the CBT.
 Forward the proposal for removal of online return filing link to HO.

STAKEHOLDER: HEAD OFFICE EXEMPTION DIVISION

LIST OF ACTIVITIES

42
  In a time bound manner shall place the Draft agenda received from the ZO
before the EEC for its decision

 The decision of the EEC shall be communicated to CBT which in turn shall
forward its views to the appropriate Govt. for a final decision
 Subsequently after the formal notification HO shall accede to the link removal
request.
 Subsequently in conjunction with Investment division HO Exemption division
shall duly verify the receipt of PA in all its components; cash and securities.

4.6 Exceptional Circumstances

a. In cases where Condition No 19 is attracted, RPFCs may approach the depository
participants to transfer the holdings of the Trust to CBT in Form CE-11 and any non-
Compliance with this request can entail cancellation of exemption of the Establishment
after the issuance of a show cause notice.

b. In the case of closed establishments, the RPFC shall facilitate transfer of past
accumulation from a prospective date or the actual date. However, this action shall not
preclude initiation of cancellation proceedings by the RPFC on the basis of available
records.

c. If the employer’s whereabouts are not known, then the RPFC may advertise in the local
newspaper as regards closure of such exempted establishment. The intention of
bringing the Trust within the fold of EPFO may be specified with a request to the
general public to furnish any available information for the purposes of cancellation of
exemption within 30 days of the publication of the advertisement.

d. In cases where despite existence of the conditions meriting cancellation as per

condition no 25 and condition 29 the cancellation is pending beyond the time
frame indicated in the aforesaid two conditions RPFC shall proceed to get a third-
party audit done immediately.

43
 e. However, if despite due diligence the same cannot be done on factual grounds he/she
can proceed to take immediate action without waiting for any Third-Party audit
report. This is required to secure the interest of workers for whom the exemption
primarily exists.

f. The draft agenda in Form CE-2 in such cases shall be processed and sent to ZO with
a note on the pending Third-Party audit, which shall include the reasons behind such
pendency and the due diligence taken by the RPFC as regards completion of the Third
Party audit before proceeding to send the agenda to ZO.

g. Further Form CE-3 sent to H.O shall be accompanied with a note from Zonal ACC
on the pending Third-Party Audit.

h. The said draft agenda shall be put up to EEC only along with the note from RO and
comments from Zonal ACC so as to take a decision as regards waiver of this document
while sending recommendations for cancellation to CBT.

i. However subsequent to the issuance of notification for cancellation, a third-party

audit of the Trust Fund shall be mandatory at the time of transfer of PA dues.

4.7 Handling of Court Cases

The petitions/counter affidavits (CA) in defense of the department’s actions towards
cancellation shall be drafted at the RO and vetted by RPFC. Every CA against a petition
challenging the cancellation of exemption shall be prepared keeping in mind the
following legal concepts
a. Exemption granted to the establishment is a privilege based on the financial health
and compliance profile of an establishment once the appropriate Government is
satisfied that the establishment had the financial heft to match the benefits provided
by EPFO.

b. Once the appropriate Government convinces itself that the financial condition of the
establishment is not sound enough to sustain the aforementioned privilege of
maintaining its own provident fund the same privilege can be withdrawn.

c. Withdrawal of exemption is not a penal action; the same is provided under Section
14(2A) of the Act when there is a violation of conditions of exemption as provided
44
 under Section 17(1A) and17(3) and elaborated under Appendix “A” Para 27AA of the
Scheme. Thus violation of conditions of exemption can lead to either cancellation or
withdrawal of exemption or a penal action under Section 14(2A) of the Act or both.
(Reference can be made to the Hon. Supreme court’s observations in N.K.
Shah Vs C.K Shah and others)]16

d. The scheme of an exempted establishment is a scheme under the EPF Act just like the
EPF Scheme 1952.Exemption doesn’t mean that the scheme of the exempted
establishment is outside the purview of the Act. In fact, just to prevent a duplication of
work the establishment has been allowed to have its own scheme. Both are schemes
under the same Act (Tata Iron and Steel Co. Ltd v Bir Singh and another-
1983(63) FJR.32;Patna High Court)]17

e. As such the exempted establishment is subject to all the compliance provisions under
the Act; Section 6.7A,8 and 14B.In fact the exempted establishment has to follow all
the conditions of exemption as indicated in the EPF Scheme 1952[Section 17(1A) (a) to
(d).
f. The RO and the ZO shall be alive to their duties as regards the logistics involved in the
preparation of CA and the communications to HO which have been laid down in the
Legal Framework document.

What the Courts Says:

The law on exemption has evolved in due course thanks to the interpretations of its key legal
concepts by the Courts by way of some important judgements. An attempt has been made to
consolidate the ratios of the said judgements as indicated below.

Case Name 1: N.K. Jain and others v C.K. Shah and another-1963(1)
LLJ.536
Judgment interpretation: Exemption is a privilege and its withdrawal
not a penalty

Case Name: 2.: Mohammedali and others v. Union of India and another-
1963(1) LLJ.536]
Judgment interpretation: Exemption is with a view to avoiding
duplication and permitting the employee concerned with the benefits under

45
the pre-existing scheme

Case Name: 3: Tata Iron and Steel Co. Ltd v Bir Singh and another-
1983(63) FJR.32
Judgment interpretation: The scheme of the exempted establishment
and the EPF Scheme, both are schemes under the EPF Act 1952

Case Name: 4: Binny Ltd V. Regional Provident Fund Commissioner

and another-1999(94) FJR. 1869Karn.H.C-D. B).]
Judgment interpretation: Exempted establishments not permitted to
credit interest annually at a lesser rate compared to the one allowed in Para
60 of the Scheme

Case Name: 5: Tamil Nadu Small Industries Development Corporation

Ltd. v, Regional Provident Fund Commissioner, Chennai-2004(1)
LLJ.67:2004(1) LLN.782(Madras H.C.)]
Judgment interpretation: Exemption under Section 17, not a matter of
right

Case Name: 6: Rhone-Poulenc Employee’s Union v. Regional Provident

Fund Commissioner and others-1996(2) LLJ.10019(Bom H.C)]
Judgment interpretation: Exemption under Section 17, not segregated
into two separate compartments and the conditions of exemption are
applicable to all types of exemptions

Case Name: 7: C.M.S. Matriculation Higher Secondary School,

Coimbatore v. Regional Provident Fund Commissioner and another on 29th
October, 1998
Judgment interpretation: Exemption under Section 17 not to be granted
where the employer fails to satisfy that its private scheme is more beneficial

Case Name: 8: Gajanand Commercial Pvt Ltd and another v. Central

Provident Fund Commissioner and others-2003(99) FLR.1109:2003(3)
CLR.900:2004(1) LLJ.540:2004(5) LLN. (SNOC 90)89(Cal.H.C).]
Judgment interpretation: Exemption under Section 17, to be cancelled
only by the authority who granted it.

46
Case Name: 9: Sundaram Motors Ltd v The Employees Provident Fund,
Regional Office, Chennai, represented by Regional Provident Fund
Commissioner, Chennai-Puducherry Region and another-W.P.Nos.6763 and
16443 of 2008 and M.P. Nos. 1 and 1 of 2008 decided on 7th
June,2011(Madras H.C).]
Judgment interpretation: Exemption cannot continue in the name of
the Trust alone when company does not exist

Case Name: 10: Jiyajeerao Cotton Mills Ltd. V. Dev Kumar Holani and
others [1998(6) SCC.35: AIR.1998 S.C.2480:1998 SCC (L & S) 1444: 1998(2)
LLJ.612 :1998 (3) LLN.928(S.C-2M]
Judgment interpretation: Notification unless made, amendments not to
be applied

Case Name: 11: National Textile Corporation (Maharashtra North) Ltd

v. Central Board of Provident Fund Employee’s Provident Fund Organization,
New Delhi and others-2010(3) LLJ.132:2010(126) FLR.712(BOM.H.C).]
Judgment interpretation: “benefit”-interest, covered

Case Name: 12: Green Fields Public School Employee’s Provident Fund
trust v. Union of India and others [2007(3) LIC. (NOC,573) at p.156(Delhi
H.C).]
Judgment interpretation: Exemption-to be decided by appropriate
Government and not by the Regional Commissioner

Case Name: 13: Regional P.F. Commissioner vs Hooghly Mills Co. Ltd &
Ors C.A No.655 of 2012(Arising out of SLP© No. 17298/2009)
Judgment interpretation: Damages under Section 14 B. can be levied on
exempted Trusts. Notably this Supreme Court judgement overturned the
judgement of the Calcutta High Court on the same matter prohibiting levy of
damages on exempted establishments

Case Name: 14: Gulshan Khandsari Udyog V UOI & Anr,1969 Lab IC
1869All), AIR 1968 All 75,3 FJR 467,1969-II LLJ477
Judgment interpretation: Employer seeking exemption u/s 17 ought to
seek it before the appropriate govt. than before the HC in writ petition

47
Case Name: 15: Consolidated Crop Protection P Ltd v Hema Chandrarao
(V) & Anr,1977-I LLJ 114 9Bom),1977 Lab IC 251,49FJR 346,1976-IILLN 469
Judgment interpretation: After cancellation of exemption from the
provisions of the statutory scheme neither the employee nor the employer
can reduce the contribution to the statutory level

Case Name: 16: Lawly Sen & Co v RPFC,1959-I LLJ 272(Pat) (DB
Judgment interpretation: Where exemption application is refused the
liability of the establishment is effective from the date the scheme is notified
and not from the date of refusal of the exemption application

48
CHAPTER 5

49
 5. Surrender of Exemption
5.1 Surrender of Exemption
Cancellation of exemption can take the route of a voluntary relinquishing of exemption by the
establishment. Once such a decision is taken by the establishment and the Board of Trustees
the exempted establishment needs to follow a designated protocol before the Trust fund is
taken over by RPFC. As a matter of fact such a voluntary surrender of exemption]18 is seen to
be getting more frequent as exempted establishments unable to cope with the vagaries of an
uncertain business climate and the fluctuations in the Bond and capital market find it difficult
to match the benefits being provided by EPFO.

A tactical decision to concentrate on their core business while leaving the task of managing the
PF of their employees to EPFO which has also significantly improved its service to its
subscribers is taken and EPFO informed about such a decision well in advance. The increasing
frequency of such decisions by exempted establishments led the CBT to devise a protocol in its
215th meeting. Encapsulating the decisions taken in the said meeting EPFO came out with a
detailed circular dated 27/12/2016 which lays down the guidelines for handling such cases.

5.2 Stakeholder Roles & Responsibilities

STAKEHOLDER ROLES & RESPONSIBILITIES

 Inform EPFO well in advance about its decision to relinquish

its exemption through a BOT resolution since the surrender
Exempted becomes effective only from a prospective date
Establishment
 Prepare a list of its beneficiaries with or without their KYC
details, get a third-Party audit of the accounts of the Trust
done in consultation with RPFC, transfer the PA dues of its
employees to EPFO and undertake to resolve the grievances
of its Trust beneficiaries prior to the period of surrender.

50
STAKEHOLDER ROLES & RESPONSIBILITIES

 Dual set of protocols; one to follow before the establishment

is permitted to comply as an un-exempted establishment,
while the other set of protocol lays down the procedure to be
followed before the establishment is finally notified as an un-
Regional exempted establishment.
Office
 After a scrutiny of the application the establishment shall be
permitted to comply as an un-exempted establishment
subject to transfer of PA and the conduct of a Third-Party
Audit and credit of the account of the newly joined
subscribers to the extent of the funds received.

 The draft agenda shall be sent to ZO and after the notification

of cancellation of exemption, however, RO should ensure
complete transfer of PA and compliance with Para 28(5) of
the Scheme.

 Understand emphasis on a hassle-free service to the

subscribers during the transitional phase of transfer of PA
and surrender of exemption.

 Certify the facts of the Draft agenda sent by the RO and send it
Zonal Office to HO.

 Scrutinize the draft agenda thoroughly before pacing it before

Head Office the EEC. The draft agenda so approved shall be placed before
Exemption the CBT whose views in turn are communicated to the
Division appropriate Government

 Shall follow up with the appropriate Government as regards

the final issuance of notification.

51
5.3 Process Flow
a. The exempted establishment seeking to relinquish its exemption shall submit its
application addressed to the appropriate Government in Form SE-1 along with the
accompanying documents listed in the said form.
b. The RO shall scrutinize the Form SE-1 and permit liquidation of securities as a
precursor to a credit of the PA in terms of the PA statement.
c. Considering the necessity of providing immediate credit to the beneficiaries whose
accounts are KYC compliant, RPFC shall allow credit of such accounts using the
multiple upload facility, immediately to provide them uninterrupted service.
d. However, the liability of the newly inducted members shall be limited to the amount
received in their accounts. A Third-Party Audit of the Trust in the designated Form
RM-6 to ascertain the financial health of the Trust shall be undertaken.
e. Subsequent to this, RPFC shall issue orders in Form SE-5 to comply as an un-
exempted establishment and allow change in status of the establishment as un-
exempted for making monthly remittance through ECR.
f. Consequent to this the provisions of Section 17(5) read with Para 28 of the Scheme
shall come into force with its concomitant penal consequences in cases of non-
compliance.
g. All issues of non-compliance with the Conditions of exemptions pointed out by
compliance audit teams as well as with any other provisions of the statute shall be
addressed before processing the proposal for final onward communication to ZO.
h. Since receipt of all PA dues prior to the formal notification for cancellation is the focal
point of the entire process, an elaborate protocol has been laid down to account for all
the accumulations and provide immediate credit to the newly joined KYC compliant
subscribers in order to provide them a seamless service at EPFO’s end.
STAKEHOLDER: EMPLOYER/ ESTABLISHMENT

LIST OF ACTIVITIES
 Shall submit PA statement within 25 days of receipt of Form SE-5
 Cash component of PA dues in 10 days in the Demand draft format
 Govt. Securities within 30 days

52
STAKEHOLDER: REGIONAL OFFICE

LIST OF ACTIVITIES
 Account for the cash component of the PA using the DR functionality in FO
interface, verifiable by HO Exemption division through TRRN on the EPFO
website.
 The receipt of Special Deposit Scheme, (after the establishment approaches its
banker), and Govt. securities shall be confirmed by a collaboration between
the HO investment division and the concerned RO which has a multi-level
confirmation action involving DA(accounts), AC(Cash) and RC(FA)
 Shall provide immediate credit to all the KYC compliant subscribers within 30
days of the issuance of Form SE-5, and using the multiple upload facility allow
credit in batches as the rest of the subscribers become KYC compliant in due
course.
 Draft agenda for surrender shall be prepared and all pending compliance
actions shall be initiated, compliance audit observations be rectified and any
pending actions like levy of surcharge for deviation in the pattern of
investment done as an essential prerequisite for forwarding the proposal to ZO
in Form SE-2.
 After the receipt of a formal notification for surrender RPFC shall cause
issuance of the requisite Gazette notification under Para 28(5) of the Scheme.
 Surrender proposal shall not be withheld on ground of non-payment of any
dues other than the admitted PA dues as compliance action can be taken even
after the cancellation of exemption. Initiation of all due legal action will be
sufficient to make the proposal complete.

STAKEHOLDER: ZONAL ACC

LIST OF ACTIVITIES
 Shall forward the draft agenda sent by RO through a communication in FORM
SE-3 in a complete shape, and fit enough to be considered by the Exempted

53
 Establishments Committee / CBT, to the Exemption Division, Head Office
along with specific recommendations through e-office only
 All Zonal ACCs shall issue appropriate directions to the field offices under their
jurisdiction and ensure strict compliance of Head Office directions of
depositing their DR collections only in the designated single collection bank
account.

STAKEHOLDER: INVESTMENT DIVISION HEAD OFFICE

LIST OF ACTIVITIES
 Shall confirm the amount of SDS/permissible securities so intimated
replying to the email back to the Regional Office within 03 working days.

STAKEHOLDER: EXEMPTION DIVISION HEAD OFFICE

LIST OF ACTIVITIES
 For cash component Exemption Division shall verify the TRRN provided by
Regional Office in Agenda from EPFO Website
 The recommendations of the Exempted Establishments Committee shall be
placed before the Central Board, in its subsequent meeting
 The complete set of documents, along with the recommendations of the EEC
and CBT, shall be sent to the Appropriate Government
 Shall follow up on its own and through the Zonal Offices till formal
completion of the desired action from the appropriate Governments

Note: Since the entire protocol of the process is designed keeping in mind the interests of the
subscribers and their right to receive hassle free service it is imperative that all the
stakeholders observe scrupulous adherence to the timelines prescribed for an expeditious
disposal of the entire exercise.

54
CHAPTER 6

55
 6. Third Party Audit & Compliance
Audit
6.1 Third Party Audit
a. Statutory provision: Condition no. 24(a) of Appendix A to Para 27 AA of the EPF
Scheme
b. Empanelment of Third-Party Auditors: The following shall be the guidelines
indicating the eligibility conditions for selection of such auditors, process of
selection, nature of work to be performed by them and the remuneration to be paid
to them:
i. Eligibility Conditions

1. An audit firm having a valid registration for at least 10 years with ICAI (Institute of
Chartered Accountants of India) and at least 5 full time partners with at least 1 full
time FCA (Fellow Chartered Accountants).

2. Further, an experience of auditing accounts/handling tax matters with companies of

having turnover of at least 50 crores per annum and Average annual turnover of the
audit firm should be at least Rs. 1.5 crores in each of the last three years.

3. Furthermore, Applicant firm or its partners should not have been held guilty of
any professional misconduct under Chartered Accountants Act, 1949 (as
amended) during past five years or penalized under any of the tax laws by ICAI or any
other statutory body and should not be facing any investigation or enquiry by any tax
authority for violation of any of the tax laws.
ii. Process of Selection

1. The process involves calling for applications via GeM, followed by scrutiny by a
committee comprising RPFC-I of RO, the senior-most RPFC-I of ZO, and an expert
member from ICAI. However, power to include RPFC-I in the committee vests

with the ACC of the Zone.

56
 2. A panel of audit firms is formed based on committee recommendations, with a
minimum number determined by the number of exempted establishments. The
panel's term is typically three years and can be extended.

iii. Nature of Work

The auditors' responsibilities include certifying the establishment's legal status, ensuring
the absence of capital erosion or consecutive losses, and submitting reports within 30 days
in the specified format.
iv. Scale of fees to be paid

The fees for these audits are determined based on the minimum scale recommended by
ICAI, subject to amendments.

6.2 Scenarios and Prescribed Performa for Third

Party Audit
a. RPFC shall direct the third-party audit in the scenario of surrender as mentioned in
process flow of Chapter-5 Surrender of Exemption.

b. In scenario of cancellation as mentioned in process flow of Chapter-4 Cancellation

of Exemption and any other scenario where it is considered necessary by
RPFC/CPFC as per condition no. 24(a) of Appendix A to para 27 AA of the EPF
Scheme.

c. The prescribed Performa for the same is placed at FORM RM-6. Third party auditor
shall submit the report in prescribed format within 30 days of conducting of the
Third-Party Audit.

6.3 Format for Third-Party Audit

A committee of officers shall be constituted to finalize the specific points of Audit in the
third-party audit format. The format shall be reviewed after every 2 years. Till such
time, the existing format shall continue.

57
6.4 Compliance Audit
a. Statutory Provision

Condition no. 26 of Appendix A to para 27 AA of the EPF Scheme.

b. Applicability

i. A comprehensive compliance audit of all the establishments enjoying exemption

either U/S 17(1)(a) of the Act or u/p 27A of the EPF Scheme so as to ensure that the
conditions for grant of exemption is fully satisfied in administering the exempted PF
Trusts.
ii. The compliance audit should cover all establishments which are notified for having
granted exemption and those establishments in respect of which the process of grant
of exemption is in progress. The compliance audit should act as an effective tool in
ensuring that the statutory and fiduciary responsibility of EPFO, Employer and
Trustees are complied with and executed.

c. Composition of Team to conduct Compliance Audit

The compliance audit shall be conducted by a team of three officers

headed by RPFC-II/APFC and Enforcement Officer (EO), If EO is not there Accounts
Officer (AO) can be accountable. The number of EO’s should not be less than two (2) in
numbers.

d. Formats and Timelines

i. The annual compliance audit of exempted establishments conducted by a team of

officers from the RO is the most important regulatory tool available.

ii. It shall be compulsorily completed by the 31st of December of the FY i.e., within 3
months of the issuance of the Annual report of the establishment and the Trust.

iii. The report of the audit shall be submitted in Form RM-3. The ZO shall forward the
status of compliance audit in FORM RM-4.

58
e. Subsequent Actions to be Taken

i. Where it emerges from the audit that the establishment has violated the conditions
of exemption or has otherwise attracted a condition for revocation of exemption (e.g.
condition; no.29, para 27AA, EPF Scheme, 1952), the RPFC/OIC shall proceed to
recommend cancellation of exemption.

ii. In other cases, the violations/defaults should be met with corrective and/or penal
actions prescribed under the law for such instances.

59
CHAPTER 7

60
 7. Governance Structure
7.1 Need for a Governance Structure
a. There are 1305 exempted establishments throughout the country as per Annual Report
2021-22 invested Rs. 1, 05,409.38 Crore during the year. The exempted establishment
represent the crème de la crème of the entire India Inc. and employs a significant chunk
of our formal workforce contributing to the growth of the nation.

b. Keeping in view the strategic importance of this sector the EPFO is duty bound to
provide world class services to them through a complete digitisation of our systems and
protocols which is already underway. The basic governance structure to manage the
tasks at present is as indicated below.

7.2 Existing Governance Structure

7.2.1 Head Office
a. The Exemption Division is the Nodal agency for handling all cases of grant, surrender
and cancellation of exemption. In this context, it liaisons between the CBT, Appropriate
Government and EEC on one hand and the ZO, RO and the exempted establishment on
the other.

b. It also reviews and monitors the functioning of ZO’s vis a vis the position of filing of
online returns as well as the Compliance audit of exempted establishments through a
predesigned mechanism.

c. It also follows up the progress of cases of grant, surrender and cancellation pending at
the end of the appropriate Government. Lastly it has the task of reviewing the work
protocols being followed in all EPFO offices vis a vis exemption and issuance of SOP’s
and circulars to fill the gaps and facilitate a proper interpretation and timely
compliance of the Law on exemption

61
d. HO, Exemption Division shall take steps for capacity building both at internal and
external levels in collaboration with PDUNASS and specialized agencies as well as
experts dealing with bond and capital market functioning vis a vis the investment of PF
money so as to facilitate development and adoption of the best practices from time to
time across the board. Similar practices shall be adopted at the ZO, level with respect to
the establishments under their jurisdiction.

e. The various verticals of Exemption division at HO level is manned by officers depicted

as per diagram below

Figure 3: Verticals and Human resources at HO - Exemption Division

f. Further, role of Head Office as per various chapters in these manuals are given below

62
7.2.2 Exempted Establishment Committee
a. The Central Board of Trustees, EPF in its 183rd meeting had passed the resolution to
constitute the Committee on Exempted Establishments]19 to aid and advice on specific
matters concerning the Schemes and the Organisation.

b. The Committee on Exempted Establishments deliberates and makes recommendations

on all policy matters relating to the exempted sector. It is required to play a far more
important role in the changed external working environment and the problems of
increasing defaults from exempted trusts.

c. The Government has amended the Income Tax Act, 1961 which deals with the
recognized Provident Fund trusts which has implications for exempted Trusts regulated
by EPFO. There are other issues relating to transfer of securities by the exempted trusts
when exemptions are cancelled. All these issues would require adequate policy
guidelines in the administration of exempt trusts.

d. The Hon’ble Chairman, CBT, EPF has reconstituted the Exempted Establishments’
Committee, sub-committee of CBT, EPF. The reconstituted Exempted Establishments’
Committee shall consist of the members as on 18.08.2023 (Refer Figure 4 below)

The terms of references of the Committee are as under:

a. To oversee the working of exempted establishments in all respects and to make

suggestions for consideration of the Board to improve working of the exempted
establishments.

b. To consider and suggest additional guidelines for grant of exemption/relaxation.

c. To review the role of exempted trusts in the context of changing business environment
and current experience.

63
 Figure 4: EEC Members

7.2.3 Central Board of Trustees

The apex body of the EPFO as per the proviso to Section 17 of the Act provides statutory
consultation to the appropriate Government on all cases of grant of exemption. Further all
cases of cancellation and surrender of exemption are put up to the CBT for its approval by the
EEC upon a report prepared by RPFC RO and duly vetted by ZO and HO Exemption division.
Subsequently, the recommendations of CBT are sent to the appropriate Govt. for its final
decision.

7.2.4 Capacity building and Information

Dissemination:
HO Exemption Division shall take steps for capacity building both at internal and external
levels in collaboration with PDUNASS and specialized agencies as well as experts dealing with
bond and capital market functioning vis a vis the investment of PF money so as to facilitate
development and adoption of the best practices from time to time across the board. Similar
practices shall be adopted at the ZO, level with respect to the establishments under their
jurisdiction.

64
 As indicated aforesaid a structured programme of training
to enhance the capacity of the EPFO personnel as well as the managerial ability of the Trustees
entrusted with a fiduciary responsibility of managing the corpus for the Trust beneficiaries is
integral to the entire context of exemption. The capacity building structure shall be threefold;

(i) At the R.O. level emphasis shall be on the deployment of an adequate number of staff to
man the exemption division. Their training needs shall be managed by the various ZTI’s
with a dedicated training module for exemption.
(ii) At the Z.O level the process of capacity building shall have an external dimension;
establishments shall be approached and seminars organized with an emphasis on their
sharing the best practices adopted by the exempted Trusts.
(iii) At the H.O. level the capacity building efforts shall have a national dimension. Thus apart
from meeting the training needs of the officers for a proper management of the Exemption
division both at the R.O’s and H.O the PDUNASS shall also look to organize structured
training programmes for exempted establishment Trusts. Such programmes shall
encourage them to share their best investment and managerial practices. Simultaneously
PDUNASS shall also organize specialized sessions with domain experts on capital markets
as well as investment experts dealing with bond and equity market trends and practices.
Lastly exemption being a function of the entire compliance matrix, sessions with legal
experts on the statutory provisions and their proper interpretation shall be an indispensable
part of all training modules on exemption at PDUNASS.

7.2.5 Zonal Office

The Zonal office is headed by ACC/ACC(HQ) level officer and RPFC-I level officers are also
posted. These officers are assisted by officials whose sanctioned strength vary across India.
The roles delineated for Zones are as detailed below:

65
7.2.6 Regional Office
Regional office is headed by RPFC-I/RPFC-II level officer and RPFC-II/APFC level officers are
also posted. These officers are assisted by officials whose sanctioned strength vary across
India.
The roles delineated for Regional Offices are as detailed below:

7.3 The Matrix of Timelines

This section highlights the major responsibilities and timelines to be abided by key
stakeholders explained in earlier sections. The responsibilities and timelines have been
explained with respect to Cancellation of Exemption, Regulation & Management of Exempted
Establishments, Grant of Exemption and Surrender of Exemption

66
7.3.1 Timelines and Responsibilities for
Cancellation of Exemption

7.3.2 Timelines and Responsibilities for Regulation

& Management of Exempted Establishments

67
7.3.3 Timelines and Responsibilities for Grant of
Exemption

7.3.4 Timelines for Grant of Permission to start

compliance as an Un-exempted establishment
Time T- 0 T- 0 +7 T-2 T-2 +30 T-3 T-3 + BoT’s
days(T-0) days days date for
(T-1) Surrender
Role Receipt of Basic Receipt of Verification Receipt of Permission to
Application Scrutiny Revised of revised Application comply as an
and Application application in final shape Un Exempted
communica and including Unit
tion of communicati justifications
deficiencies on of final for
if any discrepancies deficiencies if
any

68
7.3.5 Timelines for Agenda preparation for
consideration of appropriate Government

7.4 The Monitoring Mechanisms & Tools

f. Grant of Exemption

i. At HO level: Monthly review by ACC Exemption with all ACCs. Quarterly review by
CPFC.
ii. At ZO level: Fortnightly review by ACC. Further the Zonal Office shall forward an
RO wise quarterly report in respect of their respective zone. The format of the report
for Regional Office and Zonal Office is indicated in Form GE-5. However, the IS
division shall develop an online reporting module after computerisation of the grant
of exemption procedure as early as possible. Till such time, the Form GE-5 may be
incorporated in the respective quarterly MIS report to be sent by the Zonal offices.
iii. At RO level: Fortnightly review by RPFC

g. Regulation and Management

69
 i. RO Level

1. Regular monitoring of FORM RM-1 through FO interface.

2. Monitoring of Online performance-based evaluation system
3. Timely conduct of Compliance Audit in FORM RM-2.
4. Submission of FORM RM-3 to ZO.
5. Scrutiny of FORM RM-5.
6. Third Party Audit on need basis in FORM RM-6.

ii. ZO Level

1. Monitoring of Online performance-based evaluation system and issuance of advisory

to RO, thereof.
2. Monitoring of FORM RM-3 and report to HO in FORM RM-4.

iii. HO Level

1. Monitoring of FORM RM-1 through FO Interface by RPFC-Exemption.

2. Monitoring of Online performance-based evaluation system for advisories to ZO.
3. Monitoring of FORM RM-4.

a. Cancellation of Exemption

i. At HO level: Quarterly review by CPFC

ii. At ZO level: Monthly review by ACC
iii. At RO level: Monthly review by RPFC
iv. In addition, a monthly report for monitoring to be sent by RO to ZO and by ZO to
HO is mentioned in FORM CE-7 and FORM CE-8 respectively.
v. IS Division, Head Office shall develop an online system to process the
cancellation cases based on the priority matrix as in Form C.E.6 of this SOP.
However, till such portal is developed the procedure shall be implemented as
prescribed in the SOP with efforts to collect all documents through e-mail to the
extent possible.
vi. The Concerned Zonal Offices shall forward an establishment-wise half yearly
report as per Para 28 of EPF Scheme 1952 for the establishments whose
cancellation is notified by the appropriate Government.

70
 vii. Regional Office shall submit the status related to the cancellation proposals under its
jurisdiction and Zonal Office shall ensure that the timelines as per the SOP are
adhered to, scrupulously. The monitoring of Zonal Office shall be done at the Head
Office.
viii. The website of EPFO shall be regularly monitored for the correctness of the display
list of cancelled exemptions under their jurisdiction. Missing information shall be
updated by sending a copy of notification to the web admin NDC and Head Office

b. Surrender of Exemption

i. At HO level: Monthly review by ACC Exemption with all ACCs. Quarterly review by
CPFC.
ii. At ZO level: Fortnightly review by ACC.
iii. At RO level: Fortnightly review by RPFC
iv. In addition, a monthly report for monitoring to be sent by ZO (by seeking and
consolidating reports from RO) to HO is given in the figure that follows

c. Consolidated report in respect of monthly reports

Opening Number of proposals Number of Closing Number of Number of

Balance*(A) forwarded to Head Proposals Balance (A- proposals for proposals for
Office (B) remanded back B+C) # which Third which
from Head office Party Audit has Compliance
(C) been conducted. Audit has been
conducted.

*For first OB, if no case is under SOP pipeline and no previous surrender proposal already
sent to HO is pending for final action i.e. Approval of CBT, the same may be mentioned as
numeric zero i.e. ‘0’. Otherwise, first OB should be mentioned as = number of previous cases
pending for final action i.e. Approval of CBT + Number of proposals sent as per the SOP.

#: Enclose the list of establishments along with respective code number regarding the closing
balance mentioned in table.

d. Till the online monitoring tool /dashboard is developed the two basic tools for a proper
monitoring and regulation of the exempted establishments are as indicated below.

71
 i. Online returns
Monitoring of online returns in FORM RM-1 shall be done at the RO Level and ZO
Level followed by consequential actions as per the Priority Matrix in FORM CE-6 as
well as the actions prescribed in Condition No 16 of Appendix “A”.

ii. Online marks-based Performance evaluator

Accessible at all levels this shall be the basis of proactive actions against
establishments failing to secure the requisite number of marks.

72
CHAPTER 8

73
 8. Forms and Templates
8.1 Forms used in SOP of Grant of Exemption
Sl. No FORM Description

1. FORM GE-1 Application for grant of EPF exemption

2. FORM GE-2 Basic profile of the establishment

3. FORM GE-3 Basic profile of the establishment
Format for sending proposals to the
4. FORM GE-4
appropriate government
A quarterly report about proposals of grant
5. FORM GE-5 of exemption to be sent by regional offices
to the concerned zonal office

74
FORM GE - 1
APPLICATION FOR GRANT OF EPF EXEMPTION

To,

The appropriate Government (Refer to Section 2(a) of the Act)

Subject: Request for grant of EPF scheme exemption under S ection

17(1)/17(2) in respect of M/s. ______________ code no. -
regarding.
Madam/Sir,
M/s. _____ requests for grant of EPF exemption under Section 17(1)/17(2) of the
EPF & MP Act, 1952.
The details of the Establishment and the Trust are indicated below:

i. Name of the Establishment

ii. PAN of the Establishment

iii. Address of the Establishment

Details of Branches/Department with

address & employment strength
iv.
(a separate sheet may be added if
required)

Name of the Employer

v.
(Pl refer to Section 2(e) of the Act)

E-mail ID and Mobile No. of the

vi.
Employer.

vii. Date of coverage

viii. P.F Code No.

Total number of employees

(Pl refer to Section 2(f) of the Act)
ix.
a) With Aadhar seeded UAN

75
 b) Without Aadhar seeded UAN

x. TRUST DETAILS
a) Name of the PF Trust
b) PAN of the Trust
c) Address of the PF Trust
d)Date of
constitution/reconstitution
of the Board of Trustees
e) Single PF Trust or Common PF Single/Common
Trust? (Cross that is not applicable)
f) If Common PF Trust, Name Whether
exempted
Name (s) of Participating Units? (Yes/No)
1.
2.
3.
g) Details (Name, Code No.,
address of the Principal
Establishment Holding the common
PF Trust).
h) Names, Designation, Addresses
and Contact Details of all the
Trustees of the BoT.

(A separate sheet may also be

added in the format annexed to this
Form)
i) Date of execution of the Trust
Deed
xi. Type of Exemption applied for Tick as applicable
1. Section 17 (1) of the Act
2. Section 17 (2) of the Act
If applied under 17(2), please
indicate the clause that defines the

76
 class of employees under the Trust
Rules.
xii. Whether exemption is being sought
for
a) the establishment as a whole
b) Class of employees.
xiii. Date from which exemption is
sought
xiv. Is the Trust recognized under the
Income Tax Act?
(If yes indicate a copy of the last
recognition)
xv. Rate of contribution
a) whether at Statutory Rate
b) whether at more than Statutory
Rate
xvi. Contribution, inspection/
administrative charges paid up to
the month
a) EPF Scheme, 1952
b) EPS-1995
c) EDLI Scheme 1976
xvii. Rate of interest declared from the
date applied for grant of exemption.
xviii. Indicate the last financial year for
which annual statement of accounts
were issued to the members.
xix. Whether the company is reporting Yes/No
loss for three consecutive financial
years or erosion in their capital
base.
xx. Whether contributions have been Yes/No
transferred to the BOT since the
intended date of Grant of
Exemption.

77
 xxi. Whether consent of majority of Yes/No
employees for the exemption exists?
xxii. Whether audited balance sheet of Yes/No
the establishment and the Trust
since the intended date of grant of
exemption is
is enclosed?
xxiii. Whether amount available for Yes/No
investment after meeting obligatory
outgoings are invested according to
the pattern of investment since the
intended date of grant of
exemption.

It is requested to grant of exemption from the operations of EPF Scheme with effect from
_____________.
I/We ....... undertake that the information given above is true and correct to the best of my/our
knowledge and belief. We also understand that misleading information may have penal
consequences and lead to rejection of the application without any further communication.

(Employer)

Countersigned by

(All Trustees)

78
 CERTIFICATE OF UNDERTAKING (1/5)
To
The Regional Provident Fund Commissioner,
EPFO____________
We, the Employer, and the Board of Trustees, undertake to abide by the conditions for grant of
exemption under Section 17 of the Employees’ Provident Fund & Miscellaneous Provisions
Act, 1952.
This shall be legally binding on ____________________________ (Name of the
Establishment), and the Board of Trustees of ____________________________ (Name
of the PF Trust) including their successors and assignees or such conditions as may be
specified later for continuation of exemption. (Condition No. 22)
We, also undertake to transfer the funds promptly within the time limit prescribed from time
to time and as directed by the Regional Provident Fund Commissioner in the event of
cancellation of exemption. This shall be legally binding on us and will make us liable for
prosecution in the event of any delay in the transfer of funds. (Condition No. 23)

(Signature and name of the Employer)

(Signature) (Signature)
(Name………………….) (Name……………………)
Chairman of the Trust Secretary of the Trust

All Trustees (Name/Signature)

79
 COMPARATIVE CHART OF BENEFITS (2/5)

S.NO. UNDER THE AS PER THE RULES OF THE RULE NO.

ACT/SCHEME TRUST
1. Definition of Employee
Mode of Selection of
2. Election/Nomination/Selection
Trustees
3. Rate of Contribution
4. Rate of Interest declared
5. Withdrawals and Advances
Issue of annual accounts
7. slips within six months of
financial year end.
Whether claims are settled
within 20 days.
(Para 72 (7) of the Scheme)
8.
(Condition No. 12 of
Appendix – ‘A’ of Para 27AA
of the Scheme)
Services to members

a) Electronic passbook with

9. download facility. Online/Offline

b) Computerised account
balance viewing facility.
Grievance handling
10.
mechanism

(Signature of the Employer

(Chairman of Trust)

80
 NAMES, DESIGNATION AND ADDRESSES (3/5)
(OF THE TRUSTEES)

# Name Designation Establishment/ Address email Telephone Aadhar

Number
Participating
unit

Employer Representative

1.

2.

3.

Employee Representative

1.

2.

3.

(___________)
Chairman,
Name of the Trust_______

81
 CONSENT OF MAJORITY OF EMPLOYEES (4/5)
We, the employer of M/s. _______________ do hereby certify that intention of the
establishment for seeking exemption under section 17(1)/ section 17(2) (as the case may be) of
the EPF & MP Act, 1952 was displayed on the notice board of the establishment and such
intention was also informed to all employees through e-mail and no objections were received
from the majority of the employees as regards grant of exemption.

(______________)
Employer’s Name,
Establishment’s Name.

Employer’s Representative: Employee’s Representative:

Name and Signature______ Name and Signature_______

Name and Signature______ Name and Signature_______

82
CHECKLIST OF DOCUMENTS TO BE SUBMITTED ALONG WITH THE
APPLICATION FOR GRANT OF EXEMPTION (5/5)

Sl. No. Document Page No. (from _ to _) Remarks

1. Application addressed to the

appropriate Government.

2. 02 copies of Trust Rules duly

signed by all the Trustees
including name and designation.

3. Names, designation and

addresses of all the Trustees.

4. Consent of majority of Employees

5. Original Trust deed and their

modifications if any

6. Undertaking to abide by the

Condition No. 22 and 23.

7. Audited Balance Sheet of the

Establishment prior to the three
years before the proposed date of
Grant of exemption till date of
application.

8. Audited Balance Sheet of the

Trust since the proposed date of
Grant of exemption.

9. Comparative chart of Benefits vis

a vis EPF Scheme 1952.

(Signature and name of the Employer)

83
 CONDITIONS OF EXEMPTION AS PER APPENDIX ‘A’
TO PARA 27AA OF THE EPF SCHEME, 1952
(For Reference)
1. The employer shall establish a Board of Trustees under his Chairmanship for the
management of the Provident Fund according to such directions as may be given by the
Central Government or the Central Provident Fund Commissioner, as the case may be, from
time to time. The Provident Fund shall vest in the Board of Trustees who will be responsible
for and accountable to the employees' Provident Fund Organisation, inter alia, for proper
accounts of the receipts into and payment from the Provident fund and the balance in the
custody. For the purpose, the "employer" shall mean-
i) In relation to an establishment, which is factory, the owner or occupier of the factory;
and
ii) In relation to any other establishment, the person who, or the authority, that has the
ultimate control over the affairs of the establishments.
2. The Board of Trustees shall meet at least once in every three months and shall
function in the accordance with the guidelines that may be issued from time to time by the
Central Government/Central Provident Fund Commissioner (CPFC) or an officer authorized
by him.
3. All employees, as defined in section 2(f) of the Act, who have been eligible to become
members of the Provident Fund, had the establishment not been granted exemption, shall be
enrolled as members.
4. Where an employee who is already a member of Employees' Provident Fund or a
provident fund of any other exempted establishment is employed in his establishment, the
employer shall immediately enroll him as a member of the fund. The employer should also
arrange to have the accumulations in the provident fund account of such employee with his
previous employer transferred and credited into his account.
5. The employer shall transfer to the Board of Trustees the contributions payable to the
provident fund by himself and employees at the rate prescribed under the Act from time to
time by the 15th of each month following the month for which the contributions are payable.
The employer shall be liable to pay simple interest in terms of the provisions of section 7Q of
the Act for any delay in payment of any dues towards the Board of Trustees.
6. The employer shall bear all the expenses of the administration of the Provident Fund
and also make good any other loss that may be caused to the Provident Fund due to theft,
burglary, defalcation, misappropriation or any other reason.
7. Any deficiency in the interest declared by the Board of Trustees is to be made good by
the employer to bring it up the statutory limit.
84
8. The employer shall display on the notice board of the establishment, a copy of the
rules of the funds as approved by the appropriate authority and as and when amended thereto
along with a translation in the language of the majority of the employees.
9. The rate of contribution payable, the conditions and quantum of advances and other
matters laid down under the provident fund rules of the establishment and the interest
credited to the account of each member, calculated on the monthly running balance of the
member and declared by the Board of Trustees shall not be lower than those declared by the
Central Government under the various provisions prescribed in the Act and the Scheme
framed there under.
10. Any amendment to the Scheme, which is more beneficial to the employees than the
existing rules of the establishment, shall be made applicable to them automatically pending
formal amendment of the Rules of the Trust.
11. No amendment in the rules shall be made by the employer without the prior approval
of the Regional Provident Fund Commissioner (referred to as RPFC hereafter). The RPFC
shall before giving his approval give a reasonable opportunity to the employees to explain their
point of view.
12. All claims for withdrawals, advance and transfer should be settled expeditiously,
within the maximum time frame prescribed by the Employees' Provident Fund Organisation.
13. The Board of Trustees shall maintain detailed accounts to show the contribution
credited withdrawal and interest in respect of each employee. The maintenance of such
records should preferably be done electronically. The establishments should periodically
transmit the details of members' accounts electronically as and when direct by the
CPFC/RPFC.
14. The Board of Trustees shall issue an annual statement of accounts or pass books to
every employee within six months of the close of financial/accounting year free of cost once in
the year. Additional printouts can be made available as and when the members want, subject
to nominal charges. In case of passbook, the same shall remain in custody of employee to be
updated periodically by the trustees when presented to them.
15. The employer shall make necessary provisions to enable all the members to be able to
see their account balance from the computers terminals as and when enquired by them.
16. The Board of Trustees and the employer shall file such returns monthly/annually as
may be prescribed by the Employees' Provident Fund Organization within the specified time-
limit, failing which it will be deemed as a default and the Board of Trustees and employer will
jointly and separately be liable for suitable penal action by the Employees' Provident Fund
Organisation.

85
Provided that above mentioned return shall be filed by the employer in electronic format also,
in such form and manner, as may be specified by the Commissioner.
17. The Board of Trustees shall invest the monies of the provident fund as per the
directions of the government from time to time. Failure to make investments as per directions
of the Government shall made the Board of Trustees separately and jointly liable to surcharge
as may be imposed by the Central Provident Fund Commissioner or his representative. (pl
refer to the pattern of investment as notified vide notification no. S.O. 1433(E) dated
29.05.2015 and amended vide notification no. S.O. 3035(E) dated 22.09.2016 & notification
no. G-20031/1/2012-SS-II (Pt.) dated 19.02.2018 and as amended from time to time)
18. (a) The securities shall be obtained in the name of Trust. The securities so obtained
should be in dematerialized (DEMAT) form and in case the required facility is not
available in the area where the trust operates, the Board of Trustees shall inform the
Regional Provident Fund Commissioner concerned about the same.
(b) The Board of Trustees shall maintain a script wise register and ensure
Timely realization of interest.
(c) The DEMAT Account should be opened through depository participants
approved by Reserve Bank of India and Central Government in accordance with the
instruction issued by the Central government in this regard.
(d) The cost of maintaining DEMAT account should be treated as incidental cost of
investment by the Trust. Also all types of Cost of investment like brokerage for
purchase of securities etc. shall be treated as incidental cost of investment by the
Trust.
19. All such investment6 made, like purchase of securities and bonds, should be lodged in
the safe custody of depository participants, approved by reserve bank of India and Central
Government, who shall be the custodian of the same. On closure of establishment or
liquidation or cancellation of exemption from EPF Scheme, 1952, such custodian shall transfer
the investment obtained in the name of the Trust and standing in its credit to the RPFC
concerned directly on receipt of request from the RPFC concerned to that effect.
20. The exempted establishment shall intimate to the RPFC concerned the details of
depository participants (approved by the Reserve Bank of India and Central Government),
with whom and in whose safe custody, the investments made in the name of trust, viz.,
Investments made in securities, bonds, etc. have been lodged. However, the Board of Trustees
may raise such sum or sums of money as may be required for meeting obligatory expenses
such as settlement of claims, grant of advances as per rules and transfer of member's P.F.
accumulations in the events of his/her leaving service of the employer and any other receipts

86
by sale of the securities or other investments standing in the name of the Fund subject to the
prior approval of the Regional Provident Fund Commissioner.
21. Any commission, incentive, bonus, or other pecuniary rewards given by any financial
or other institutions for the investments made by the Trust should be credited to its account.
22. The employer and the members of the Board of Trustees, at the time of grant of
exemption, shall furnish a written undertaking to the RPFC in such format as may be
prescribed from time to time, inter alia, agreeing to abide by the conditions which are
specified and this shall be legally binding on the employer and Board of Trustees, including
their successors and assignees, or such conditions as may be specified latter for continuation
of exemption.
23. The employer and the Board of Trustees shall also give an undertaking to transfer the
funds promptly within the time limit prescribed by the concerned RPFC in the event of
cancellation of exemption. This shall be legally binding on them and will make them liable for
prosecution in the event of any delay in the transfer of funds.
24. (a) The account of the Provident Fund maintained by the Board of Trustees shall be
subject to audit by a qualified independent chartered accountant annually. Where
considered necessary, the CPFC or the RPFC in-charge of the Region shall have the
right to have the accounts re-audited by any other qualified auditor and the expenses so
incurred shall be borne by the employer.
(b) A copy of the Auditor's report along with the audited balance sheet should be
submitted to the RPFC concerned by the Auditors directly within six months after the
closing of the financial year from 1st April to 31st March. The format of the balance
sheet and the information to be furnished in the report shall be as prescribed by the
Employees' Provident Fund Organisation and made available with the RPFC Office in
electronic format as well as a signed hard copy.
(c) The same auditors should not be appointed for two consecutive years and not
more than two years in a block of six years.
25. A company reporting loss for three consecutive financial years or erosion in their
capital base shall have their exemption withdrawn from the first day of the next/succeeding
financial year.
26. The employer in relation to the exempted establishment shall provide for such facilities
for inspection and pay such inspection charges as the Central Government may from time to
time direct under clause (a) of subsection (3) of section 17 of the Act within 15 days from the
close of every month.

87
27. In the event of any violation of the conditions for grant of exemption, by the employer
or the Board of Trustees, the exemption granted may be cancelled after issuing a show cause
notice in this regard to the concerned persons.
28. In the event of any loss to the trust as a result of any fraud, defalcation, wrong
investment decisions etc. the employer shall be liable to make good the loss.
29. In case of any change of legal status of the establishment, which has been granted
exemption, as a result of merger, demerger, acquisition, sale amalgamation, formation of a
subsidiary, whether wholly owned or not, etc., the exemption granted shall stand revoked and
the establishment should promptly report the matter to the RPFC concerned for grant of fresh
exemption.
30. In case, there are more than one unit/establishment participating in the common
Provident Fund Trust which has been granted exemption, all the trustees shall be jointly and
separately liable/responsible for any default committed by any of the trustees/employer of any
of the participating units and the RPFC shall take suitable legal action against all the trustees
of the common Provident Fund Trust.
31. The Central government may lay down any further condition for continuation of
exemption of the establishments.

88
FORM GE - 2
BASIC PROFILE OF THE ESTABLISHMENT
(TO BE FURNISHED BY RPFCS)
1.
Name of the Establishment seeking Exemption

2. Code No.

3. Address of the Establishment

4. Date of Coverage

5. Date from which exemption is sought

6.
Section under which Exemption is sought

7.
Whether exemption is being sought for

a) the establishment as a whole

b) Class of employees

8. Appropriate Government
9. a) Name of the PF Trust

b) Single PF Trust or Common PF Trust?

c) If Common PF Trust, No. of Participant Units?
d) If Common PF Trust, Details (Name, Code No., etc. of
the Principal Establishment Holding the PF Trust)?
10. Address of the PF Trust
11. a) Proposal for relaxation w.e.f.
b) If Relaxation not granted, whether complying as an Un-
exempted Establishment?
12. a) No. of Branches of the applicant Establishment
b) Location of Branches with Name of the State
13. Details of employment strength
a) Number of ‘directly’ engaged employees
b) Number of ‘indirectly’ engaged employees
c) Total employees (a+b)

89
 SUMMARY OF SCRUTINY BY THE RPFC
(TO BE FURNISHED BY RPFCS)

Sl. Document/ Information If received Comments if

No. and verified. any.

YES NO

1. Application for Grant of Exemption

Whether the application is signed by the

employer?

Whether application is addressed to the correct

Appropriate Government?

Section under which Grant has been sought?

If application is under Para 17(2), whether the

definition of “Class of Employees” has been
indicated in the application?

2. Trust Rules

Whether the Trust Rules are in compliance with

the conditions of exemptions i.e., Appendix ‘A’
to Para 27AA.

Whether the Trust deed incorporates the Name

and Address of the applicant establishment?

If it is a common PF Trust, whether the Trust

rule incorporates the Names and Addresses of
all the participating units?

Whether the Trust Rules are signed by all the

Trustees with their names and designations?

90
3. Certificate of Comparison of Benefits under the Rules of
Trust

Whether signed by employer and

verified/certified by the RPFC?

Whether all the corresponding rules of the Trust

have been matched with the EPF Scheme?

Whether the Comparison of Benefits are

verified?

4. Particulars of the Establishment

Whether Establishment particulars have been

verified and certified by the RPFC?

5. Consent of Majority of Employees

Whether the consent of majority of the

employees has been received.

6. Composition of the Board of Trustees

Whether the No. of Trustees representing the

employer and the employees ensures that their
Nos. are in accordance with provision of Para
79C (1) of EPF Scheme, 1952?

7. Names, designation and addresses of all the Trustees

Whether the details of the Trustees have been

furnished?

91
 In case of common provident fund for a group
of two or more establishments, whether one
representative each from the participating
establishments has been included in the Board
of Trustees?

8. Compliance Status of the Establishment

Whether contributions at the statutory rates

have been transferred to the BoT/RPFC
regularly?

9. Compliance Status of Contractor Employees

Whether compliance of contract employees, by

or through contractor (s) in or in connection
with the work of the establishment has been
furnished?

If PF Code No. is separately allotted to the

contractor, whether name of the contractor and
employment strength of each contractor has
been furnished.

10. Undertaking to abide by the Condition

No. 22 and 23

Whether signed by the employer and all the

Trustees?

11. Audited Balance Sheet of the

Establishment

Whether the audited Balance Sheet since the

proposed date of exemption has been received?

Whether Condition No. 25 is attracted?

92
12. Audited Balance Sheet of the Trust

Whether audited balance sheet of the Trust has

been furnished since the proposed date of
exemption?

Whether the Trust has incurred any loss?

Whether the loss has been made good by the

employer?

Whether the condition No. 24 C has been

complied with?

13. Compliance Audit Report (CAR)

Whether any deviations that may impact Grant

of exemption have been recorded in the CAR?

Whether the establishment has clarified the

deviations reported and the same is found
acceptable?

14. Rate of Interest

Whether the rate of interest declared is at par or

more than Statutory rate?

Indicate the Interest Rate

15. Constitution/reconstitution of BoT

Whether BoT is constituted/reconstituted as per

para 79C?

16. Trust Deed

93
 Whether the registered Trust Deed has been
furnished?

If No, Reasons for non-supply?

17. Deed of Variation in Change of name of the Trust

Whether the establishment has furnished the

deed of variation?

18. Total Corpus

Conclusion: The proposal for Grant of Exemption has been thoroughly scrutinized and is
fit/not fit for consideration.
Additional Remarks:

Name of RPFC_____________
Region__________
Date__________

94
 LIST OF DOCUMENTS TO BE ADDED BY THE RPFC WITH THE SUMMARY
SHEET

1. Ministry of Labour & Employment’s (MOL&E), 16-points checklist duly signed and
verified by the RPFC.
2. Comparison of Benefits under the Trust Rules duly signed and verified by the RPFC.
3. RPFC certificate regarding Investment Pattern.
4. Draft agenda for Exempted Establishment Committee.

MOL&E 16-points check list for Grant of Exemption along with Form GE-2.
Sl. Subject Response Remarks
No.
1. Whether the Board of Trustees
has been created under the
chairmanship of employer?
2. Whether all the eligible
employees are enrolled as
members?
3. Whether the accounts will be
maintained electronically, and
all the members will be able to
see their account balance from
the computer terminals? If not,
the reasons therefore, and by
what time accounts are expected
to be maintained electronically?
4. Whether the employer and the
board of trustees have furnished
a copy of the prescribed
undertaking to the RPFC
concerned as per the condition
no. 22 contained in Appendix ‘A’
to Para 27AA the EPF Scheme,
1952? If yes, a copy of the same
to be enclosed.
5. Whether the employer and the
board of trustees have furnished
the undertaking as per condition
no. 23 contained in Appendix ‘A’
to Para 27AA of the EPF
Scheme, 1952? If yes, a copy of
the same to be enclosed.

6. Comparative statement of
benefits admissible under the

95
Sl. Subject Response Remarks
No.
EPF & MP Act, 1952 and the
Scheme proposed by the
establishment based on which it
is concluded that the scheme of
the establishment is at least
comparable with those of the
Act?
7. Mechanism proposed by the
EPFO/RPFC to ensure that
establishment is complying with
the provisions of the conditions
for grant of exemption.
8. Name of the RPFC in whose
jurisdiction the establishment
falls.
9. Payments, which need to be
made by the establishment ever
after Grant of Exemption.
10. Whether the establishment is
fulfilling the prescribed
conditions after grant of
relaxation under Para 79 of the
EPF Scheme, 1952 and there is
no violation of same?
11. Whether the Aadhar Seeding is
being done by the establishment
as per Aadhar Act, 2016?
Furnish status.
a) Total A/c’s seeded with
Aadhar.
b) Total A/c’s yet to be seeded
with Aadhar.
c) Balance – A/c’s to be seeded.
12. Whether the transfer of funds of
inoperative Accounts is being
done as per prescribed
conditions of Senior Citizens
Welfare Fund Rules, 2016.
i) Amount in inoperative A/c as
on …..
ii) Amount transferred to
Central Govt. as on …..
iii) Balance to be transferred

96
Sl. Subject Response Remarks
No.
13. Whether entire data is
electronic?
14. Whether option for settlement
of online claim is available?
15. Whether the Trust is having
online grievance handling
mechanism?
16. Whether the arm’s length policy
in investment is being followed
by Trusts.

RPFC
Region_________
Date___________

97
FORM GE - 3
BASIC PROFILE OF THE ESTABLISHMENT
(TO BE FURNISHED BY ACCS)

1. Name of the Establishment

2. P.F. Code No.
3. Date of coverage
4. Section under which Exemption is
applied for
5. Date from which exemption is
sought
6. appropriate Government

7. Whether Form GE-2 has been YES/NO

scrutinized?
8. Has the establishment been relaxed YES/NO
under Para 79
9. Reasons for placing the proposal Rejection/Acceptance for
before EEC? Grant of Exemption Proposal
10. I Whether relevant justifications
f have been included in the agenda
for consideration of EEC?

Conclusion: The proposal for Grant of Exemption has been thoroughly scrutinized and may
/may not be considered. (Delete as appropriate)

ACC

Zone_________________

Date___________

98
FORM GE - 4
FORMAT FOR SENDING PROPOSALS TO THE APPROPRIATE GOVERNMENT
To,
The appropriate Government
Subject: Grant of exemption in respect of M/s. __ code no. __ - regarding
Madam/Sir,
M/s. __ bearing code No. __ has applied for Grant of exemption under Section
17(1)/17(2) of the EPF & MP Act, 1952 from the operations of the Employee’s Provident Fund
Scheme, 1952 vide its application dated __
2. The application of the establishment for grant of exemption was placed before the EEC,
in their __ meeting held on __ and before the Central Board, EPF in their __ meeting held on
__.
3. Having considered the application, the Central Board has opined to recommend the
case for grant of exemption under Section 17(1)/17(2) of the EPF & MP Act, 1952 to the
appropriate Government which is the Government of __ in this case.
4. In this context, please find enclosed the following documents for perusal and
consideration.
i. Application of the employer addressed to the appropriate Government for Grant of
Exemption.

ii. 16-points checklist prescribed by MoL&E.

iii. Certificate of Comparison of benefits under the Trust Rules.

iv. Consent of Majority of Employees.

v. Up-to-date Compliance Status of the Establishment.

vi. Undertaking to abide by the Condition No. 22 and 23.

vii. Latest Compliance Audit Report for the last 03 years.

viii. Copy of relaxation order granted by the concerned ACC, if any.

ix. Copy of PF Trust Rules

x. The specific recommendation of RFPC, Regional Office, _____ vide letter dated_____
and of ACC, Zonal Office, _____ vide letter dated _____.

xi. Minutes of the __ EEC Meeting held on __.

xii. Minutes of the __ CBT Meeting held on __.

99
5. If considered appropriate, necessary notification granting exemption may be issued in
respect of the establishment under Section 17(1)/17(2) of the EPF & MP Act, 1952.

Encl. – As above.

(Name as per Vertical V-III/V-IV)

RPFC (Exemption)

Head Office

Copy to: i) Zonal Office, __. For information and pursuing

the appropriate Government
ii) RPFC Delhi west, __.
for issuing notification please.
iii) ACC (Compliance) Head Office
iv) ACC (Finance &Investment) Head Office For information
v) ACC (IS) please

100
CHECK LIST FOR THE HEAD OFFICE FOR FORWARDING THE PROPOSAL
TO THE APPROPRIATE GOVERNMENT

1. Name of the applicant Establishment

2. P.F. Code No.
3. Regional Office
4. Zonal Office
5. appropriate Government
6. Whether the application of the
establishment is enclosed
7. Whether minutes of CBT enclosed
8. Whether documents placed before CBT
is enclosed
9. Whether approval of CPFC has been
taken for forwarding to appropriate
Government

RPFC

Exemption, Head Office

Dated__________________

101
FORM GE - 5
(To be sent by 7th day from the end of the quarter)
A quarterly report about proposals of Grant of Exemption
to be sent by Regional Offices to the concerned Zonal Office in the .xls format as below:

Name of Opening No. of No. of No. of No. of Closing Remarks

Regional Balance proposals proposals Complete proposals Balance
Office received sent back to proposals forwarded (a-b)
up to the establishment received. to ZO.
quarter for (a) (b)
deficiencies /
clarification
Delhi
West

Report on Grant of Exemption to be sent by Zonal Office to the Head Office in the .xls format”
(To be sent by 10th day from the end of the quarter)

Zonal Regional Opening No. of No. of No. of No. of Closing Remarks

Office Office Balance proposals proposals Complete proposals Balance
received sent back to proposals forwarded (a-b)
up to the RO for received. to HO.
quarter deficiencies (a) (b)
/clarification
Tamil Chennai
Nadu Tambaram

102
 Monitoring format for review at Head Office:

Zonal Office
Opening Balance
No. of proposals received up to the
quarter
No. of proposals
Returned for clarifications
No. of Complete proposals received.
No. of proposals processed by ASO.
No. of proposals processed by Division
Head
No. of agenda approved for EEC
Closing Balance
Remarks
Oldest Pending Proposal

103
8.2 Forms used in SOP of Management and Regulation
of Exempted Establishments
Sl. No FORM Description
1. FORM RM-1 Online returns to be filed by the establishment.
2. FORM RM-2 Compliance Audit of exempted establishments
3. FORM RM-3 Compliance Audit position by ROs to ZO
4. FORM RM-4 Compliance Audit position by ZOs to HO
Balance Sheet of the Trust Fund (Currently under
5. FORM RM-5
preparation to be circulated later)
Third Party Audit (Currently under preparation to
6. FORM RM-6
be circulated later)

104
FORM RM - 1

ONLINE MONTHLY RETURN TO BE FILED BY ESTABLISHMENT EXEMPTED UNDER

THE EPF SCHEME THROUGH A RELAXATION ORDER OR NOTIFICATION

FIELD WISE INSTRUCTIONS

PART A: ESTABLISHMENT'DETAILS

SI. No Field Name Field Type Remarks

A Establishment ID Will be auto

B Name of the Establishment populated For any change in the
based on log in data against B and/or
C Address
by the C the employer needs
employer to approach the
concerned PF Office
with a request letter
and supportive
documents as
applicable.
D PAN of the Establishment Data entry The PAN and the
E Name of Establishment Data entry Name as per PAN will
as per be verified from the

PAN Income Tax Database

and the result will be
displayed later.
F Ownership Type Selection from Please see Annexure A
a drop down to view the list.
list
G Primary Activity Selection from Please see Annexure
a drop down B to view the list.
list
H Exemption Under Selection from Please see Annexure
Section/Pare a drop down C to view the list.
list

105
SI. No Field Name Field Type Remarks

I (i) Relaxation Order Number Data entry Fields for I (i) to (viii)
I (ii) Relaxation Order Date Data entry will be displayed if

I (iii) Issued By Selection from the selection against SI

a drop down H is Section 17 (1)
list (a) or Para 27A.

I (iv) Relaxation with effect Data entry

from
I (v) Notification Number Data entry
I (vi) Notification Date Data entry Notification will
I (vii) Issued By Selection from be mandatory.
a drop down
list
I (viii) Notification with effect Data entry
from
In case of Exemption
Under Para 27, Order
Number
I (i) Order Date Data entry These fields will

I (ii) With effect from Data entry appear if the section

under SL His Para 27.
I (iii) Issued By
The employer is
required to enter the
first order granting
exemption to a
member.
J Branches having Click here link Link shows the list of
separate/Sub separate code/sub
code code which is
updated in Form SA

106
SI. No Field Name Field Type Remarks
K Branches not having any Click here link The employer is also
code number required to list out all
its branches located at
places other than the
establishment and
not having any
separate or sub code
number (employees
working where are
also complying under
the Trust. Employer
can add new branch
in form SA.
L Contribution Rate Selection from Default value will be
10 or 12% 12%
as applicable.

Note: The part C, D and E will allow entry only when the Part A and B are filled in,

Part E and F will allow entry only if the establishment filing the return is also
the Parent Trust in case of Common P F Trust (refer Part B).
EDITING OF THE DATA IN PART A

Once the date is saved, it can be edited later when there is any change in the date by
click of the EDIT Button.

However the following data cannot be edited:

1. Name and Address of the Establishment. If any change is there the employer
is required to request the concerned PF Office with supporting documents so
that the data is first changed in the EPFO Application and it will be updated
on the Unified Portal.
2. The PAN and Name as per PAN of the establishment if the data is verified and
the status is shown as verified.
3. Selection of the Section/Para regarding the relaxation Order/Notification and
the details of such order, as the start month of the return is b sed on the
'with effect from' date of exemption.
107
 PART B: TRUST DETSILS

SI. Field Name Field Type Remarks

No.

A. PAN of the Trust Data entry The PAN and the Name
Name of the Trust as per Data entry as per PAN will be
PAN verified from the Income
B. Tax Database and the
result will be displayed
later.
Name of the Trust as per Display The name will be
C. Records displayed from the
records of EPFO.
D. Address Line 1 Data entry
E. Line 2 Data entry
F. City Data entry
G. District Selection
H. State Selection
I. PIN Data entry
Income Tax Order Data entry Please inform if the
Recognizing the Trust trust has been
J.
recognized by the IT
Department.
K. Date of Income Tax Trust Data entry - Do -
Date of Income Tax Order Selection Please select Single if
the Trust is handling the
PF Contributions of
single establishment
L. (including the
branches, not having
been granted any
separate exemption).
Select CPF Trust if the

108
 Trust is handling
contributions from
other participating
units also.
Details of Establishment The fields In case the
having the will be as establishment that is
Parent Trust {In case L is follows: filling the return enters
Common PF Trust) own code number as the
Select State Selection Establishment handling

State Office Selection the Trust, it will be able

to enter the details in
Regional Code Display
Part E and F.
Office Code Display
In case the Trust is
Code Number Data entry
handled by another
Extension Data entry
code and the
establishment filing the
return is a
P a r t i c i p a t i n g unit,
he will be able to view
the data in Part E and F
if entered by the Parent
Trust.

A link to view the

compliance by the
Branch post March 2012
will also appear.

There will be facility to

add row for more
branches.
M Details of Chairman Following
fields will
be there
Name Data entry

109
 Designation Data entry

N Details of Representatives Following The details of the

fields will Representatives from
be there the establishment which
Name Data entry is filling the return
Designation Data entry should be entered.

Whether Employee or Selection

Employer Representative
Whether Elected or Selection
Nominated Member
0 DMAT Account Details Following There will be facility to
fields will add rows for more
be there accounts.
Account Number Data entry
Depository Participant Data entry
Depository Type Selection
p CSGL/SGL Account Details Following There will be facility to
fields will add rows for more
be there accounts.
Account Number Data entry
Depository Participant Data entry
Account Type Selection
Q Trust Bank Account Following The details is being
fields will collected so that the
be there EPFO Offices and the
other Trusts may
transfer the PF
Bank Account Number Data entry Amounts through·

IFSC Code Data entry electronic mode. Only

one account can be
added, so that all
payments are sent to it.

110
 This information will be
made available to the
EPFO Offices and the PF
Exempted Trusts and
will also be auto
displayed in the Online
Transfer Claim Form.
R Date of Last Constitution Data Entry Please enter the data
of the Board when the Boards of
Trustees was last
constituted.

Note: The part C, D and E will allow entry only when the Part A and Bare filled in.

Part E and F will allow entry only if the establishment filing the return is also the
Parent Trust in case of Common P F Trust.
EDITING OF THE DATA IN PART B

Once the data is saved, it can be edited later when there is any change in the data by click
of the EDIT Button.

However, the following data cannot be edited:

4. The PAN and Name as per PAN of the Trust if the data is verified and the
status is shown as verified.
5. The selection and subsequent entry regarding the Single and Common P F
Trust since it will affect the data in the Part E and F.

PARTS C, D and E (MONTHLY PART)

The Part C and D are to be filled in by all establishments each month.

The Part E will have to be filled in by the Parent Trust only each month and the
participating units having exemption granted will have the view rights.

Part C : Employee Details(Monthly Part)

Field Type Remarks

SI. No. Field Name

111
A. Data entry One time data entry
Number of employees as on close
(only in the first
of previous month
return). On the next
month the number
of employees as on
close of previous
month is
automatically
displayed.
B. Data entry
Number of employees who joined
in the current month
C. Data entry ..
Number of employees who left
during the current month
D. Display Sum of (A+B+C) All
Number of employees as at the
types of employees
end of current month
are included.
E. Data entry
Number of Excluded Employees
out of D above
F. Display F=A+B-E
Number of employees for whom
establishment has to comply
G.
Contract Complying
Employee under Trust
Details Complying as
Data entry
un- exempted
under another
code of
establishment

Complying
through
respective code
of contractor

112
H.
Employees on As exempted
Direct Payroll employee
of
As un-
Establishment
exempted
Employee
I. Data entry
Number of International
Workers
J. Data entry
Number of Disabled Workers

113
 PART D: Contribution Details (Monthly Part)

SI. No. Field Name Field Type Remarks

A. OB of PF Contribution still due from Data entry Only one time data
employer entry with first
return. On
subsequent months it
will be automatically
displayed

B. PF Wages liable for Contribution Data entry

C. EE Share Data entry

D. ER Share Data entry

E. Refunds Due in the month Data entry

Transferred

F. Total Due Auto display It will display the

amount by adding
total due amounts

G. Details of Transfer Amount Data entry Click on add row

of Contribution button and fill the
Date Selection
amount in case the
funds were
transferred in parts.

H. Total amount transferred to BOT Auto display It will display the

amount by adding
total transferred
amounts

I. Balance Due for transfer Auto display It will display

remaining amount by
deducting total
amount transferred
from total dues.

114
J. Interest paid Data entry Interest paid to Trust
by the employer for
any belated transfer
to Trust

115
 PART E: INVESTMENT DETAILS (MONTHLY PART by PARENT TRUST
ONLY)

SI No Field Name Field Type Remarks

A. Securities Auto Display Display the face value of

opening balance after data
entry in the first return
through link (securities). In
subsequent month, auto
display

B. Cash Data entry One time data entry

C. Total Auto display It will display the amount by

adding securities and cash
i.e.(A+B)

Receipts

D. PF Contribution

E. Refunds (Loans & Advances)

F. Transfer in

G. Other Receipts

H. Recoup by For Capital loss

Employer in on investment

I. Case of loss by For Revenue

Trust loss on account
of Interest
shortfall
Return from Investments:

J. Interest Previous Due Data entry One time data entry. On

next month it will be
automatically displayed

K. Receivable in Data entry

116
SI No Field Name Field Type Remarks

the current
month
L. Received in the Data entry
current month
M. Balance Auto display It will display the amount
by using the formula (J+K-
L)
N. Maturity Previous Due Data entry One time data entry. On next
month it will be
automatically displayed

O. Receivable in Auto display The amount will appear

the current from the details entered
month through the link "Matured
During the Month". The sum
of face value of all securities
matured will be displayed

P. Received in the Data entry

current month
Q. Balance Auto display It will display the amount by
using the formula (M+N-O).

R. Others Received Due Data entry One time data entry. On next
month it will be
automatically displayed.

S. Receivable in Data entry

the current
month
T. Received in the Data entry
current month
U. Balance Auto display

V. Total Receipts Auto display It will display the amount by

adding the following fields

117
SI No Field Name Field Type Remarks

(D+E+F+G+H+l+L+P+T)

Payments

W. Claim including Transfer out Data entry

X. Loans and Adv Data entry

Y. Other Payments Data entry

Z. Total Payments Auto display It will display the amount

by adding the claims
including transfer out,
loans and adv and
other payments
.i.e.(W+X+Y)
AA. Amount available for Investment Auto display It will display the amount
(B+V-Z) by using the formula
(B+V-Z).
BB. Total amount invested by BOT Auto display The amount will appear
from the details entered
through the link
"Investment Details
During the Month"
It will automatically
display the sum of amount
from securities screen by
using the formula (F+G-
H)- The deal value will be
taken.
CC. Cash Balance Auto display

DD. % of cash balance against available Auto display It will display the amount
by using the formula
(CC*lOO/AA).
EE. Reason for un-invested amount Data entry

118
Screen opened through Hyperlink Securities/Matured Amount/Invested Amount

119
INVESTMENT DETAILS SECURITIES:
Reference Opening Matured Invested during the month Closing
balance During Balance
as on the
First Month
Return

SI. Face Face Face Deal Accrued Accrued Remarks

No value value value value Interest Interest Face value
Paid Received

a b c d e f g h i j
1 Central One Time Data entry Data Data Data entry Data entry Auto The face
Government data entry entry display value of
Security Item (I) of Closing
the notification Balance is
auto
2 State One Time Data entry Data Data Data entry Data entry Auto
display the
Government data entry entry display
amount by
Securities/SDL
using the
Item (II) (a) of
formula
the Notification
face value
3 Central/State One Time Data entry Data Data Data entry Data entry Auto of opening
Government data entry entry display balance-
Guaranteed face value
Securities Item of mature
(II) (b) of the + face
Notification value of
investment
4 Bonds/Securities One Time Data entry Data Data Data entry Data entry Auto
i.e. (C-
of Public data entry entry display
 Financial D+E)
Institution item
(iii) (a) of the
Notification
5 Bonds/Securities One Time Data entry Data Data Data entry Data entry Auto
of Central Public data entry entry display
Sector
Undertaking
item (iii) (a) of
the Notification
6 Bonds/Securities One Time Data entry Data Data Data entry Data entry Auto
of Public Bank data entry entry display
item (iii) (a) of
the Notification
7 Bonds/Securities One Time Data entry Data Data Data entry Data entry Auto
of State Public data entry entry display
Sector
Undertakings
item (iii) (a) of
the Notification
8 TOR (less than a One Time Data entry Data Data Data entry Data entry Auto
year) of PSB item data entry entry display
(iii) (b) of the
Notification
9 Collateral One Time Data entry Data Data Data entry Data entry Auto
Borrowing & data entry entry display
Lending
Obligation
 (CBLO) item
(iii) (c)
of the
Notification
10 Bonds/Securities One Time Data entry Data Data Data entry Data entry Auto
of Private Sector data entry entry display
item (v) of the
Notification
11 SOS One Time Data entry Data Data Data entry Data entry Auto
data entry entry display
12 Others One Time Data entry Data Data Data entry Data entry Auto
data entry entry display
Categories for Investment as per New Pattern w.e.f 29.05.2015
13 Category (i) (a) One Time Data entry Data Data Data entry Data entry Auto Will open
Government data entry entry display only from
Securities May 2015
14 Category (i)(b) One Time Data entry Data Data Data entry Data entry Auto
Other Securities data entry entry display
15 Category (i)(c) Gilt One time Data entry Data Data Data entry Data entry Auto
Mutual Funds data entry entry display
entry
16 Category (ii) (a) One time Data entry Data Data Data entry Data entry Auto
Listed Debt data entry entry display
Securities entry
17 Category (ii)(b) One time Data entry Data Data Data Data entry Auto
Basel III Tier data entry entry entry display
Bonds entry
18 Category (ii)(c) One time Data entry Data Data Data Data entry Auto
Rupee Bonds of data entry entry entry display
IBRD, IFC and entry
ADB
19 Category (ii)(d) One time Data entry Data Data Data entry Data entry Auto
Term Deposit data entry entry entry display
Receipts(TDRs)
not less than one
year duration.
20 Category (ii) (e) One time Data entry Data Data Data entry Data entry Auto
Debt Mutual data entry entry display
Funds entry
21 Category (ii) (f) One time Data entry Data Data Data entry Data entry Auto
Infrastructure data entry entry entry display
debt. Instruments
22 Category (iii) (b) Data entry Data entry Data Data Data entry Data entry Auto
Category (iii) (b) entry entry display
Liquid Mutual
Fund
23 Category (iii) (b) Data entry Data entry Data Data Data entry Data entry Auto
liquid Mutual entry entry display
Fund
24 Category (iii) (c) Data entry Data entry Data Data Data entry Data entry Auto
Term Deposit entry entry display
Receipts (TDRs)
of up to one year
duration
25 Category (iv) (a) Data entry Data entry Data Data Data entry Data entry Auto
Shares of Body entry entry display
Corporates list
 on BSE/NSE.
26 Category (iv)(b) Data entry Data entry Data Data Data entry Data entry Auto
Mutual Funds entry entry display
regulated by SEBI
27 Category (iv) (c) Data entry Data entry Data Data Data entry Data entry Auto
ETF of either entry entry display
Sensex index or
Nifty SO index.
28 Category (iv) (d) Data entry Data entry Data Data Data entry Data entry Auto
ETF's of entry entry display
Disinvestment by
Govt. of India in
body corporate
29 Category (iv) (e) Data entry Data entry Data Data Data entry Data entry Auto
ETF for the entry entry display
purpose of
hedging
30 Category (iv) (a) Data entry Data entry Data Data Data entry Data entry Auto
CMBS or RMBS. entry entry display
31 Category (v)(b) Data entry Data entry Data Data Data entry Data entry Auto
Unite issued by entry entry display
REITs.
32 Category (v)(c) Data entry Data entry Data Data Data entry Data entry Auto
ABS regulated by entry entry display
SEBI
33 Category (v) (d) Data entry Data entry Data Data Data entry Data entry Auto
Units of entry entry display
Infrastructure
Investment
Trusts regulated
 by SEBI
34 Total investments sum sum sum sum sum sum sum
 Two more hyperlinks from the Part E
l. Regarding the Claim settlements in the Establishment and on the
Grievance redressal. The pop up screen will ask each month the
following data

Sl No Data Field Field Type Remarks

Claims
1. Financial Year upto which accounts Selection Financial Year
audited.
2. Name & Year Data Entry Entry of previous 6
Address of the Name Years
Auditor for last Address
Six Years CAs Registration
Number
3. Whether copy of the latest Audit Selection Yes/No
Report Sent to the RPFC
4. Year
Sent vide letter
No
If Yes Data Entry
Latter date
Date of Receipt
BY RPFC
II. Details of Annual Statement of account
5. Annual Statement of account Data Entry
issued upto
6. No. of contributing members Data Entry
Closing Balance Amount Giving
Contributory members
7. No. of Non Distribution Members Data Entry
Closing Balance Amount Giving
Non Contributory members
8. Amount available for Data Entry
Distribution of interest
9. Rate of interest declared and Data Entry
credited
10. Whether the deficiency in interest Selection
was made good by the employer?
11. Whether the interest is on Selection
monthly accrual of balance
12. Whether the accounts are being Selection
mainlined electronically
13. Whether the member are able to Selection
 see their Account Balance
14. Whether the rules of the fund are Selection
displayed on a notice
board
III. Financial Health of the Holdings
15. Total Holding of the trust at the Data Entry
end of Financial Year
16. Market value of the holding of Data Entry
trust at the end of financial Year
IV. Amortization Account of the trust
17. Opening Balance

18. Addition/Reduction during the

year
19. Closing balance
20. #Reduction to be entered in(-)
V. Maturity in Defaults
a. Default of Security Data Entry
b. ISIN Data Entry
c. Face Value Data Entry
d. Deal value at the time of purchase Data Entry
e. Amount Receivable Data Entry
f. Amount Received Data Entry
g. Amount in default Data Entry
h. Total =(e-f)
VI. Interest In Defaults
a. Default of Security Data Entry
b. ISIN Data Entry
c. Interest receivable Data Entry
d. Interest Received Data Entry
e. Interest in Default Data Entry
f. Total =(c-d)
 FORM RM - 2
ANNEXURE —I
REPORT OF THE FINDINGS OF COMPLIANCE AUDIT
1.1 DETAILS OF THE ESTABLISHMENT
I. Name of the establishment: -
II. P.F. Code no of the establishment: -
III. Date of audit:
IV. Period up to which audit carried out: Up to
V. Date of coverage:
VI. Names, addresses of braches/ departments:
VII. Whether relaxation has been granted by the commissioner in terms of para 79 of
the Scheme:
VIII. Whether granted exemption under Section 17(1) (a), 17(1) (b), para 27,27A.
IX. If exempted u/p 27, the employment strength of the establishment and the total
no. of employees exempted:
X. If exempted u/p 27A, the class of employees exempted and total no.:
XI. Xl. The no. of "excluded employees" by virtue of drawing more than Rs. 6500/- per
month:
1.2 The instances of violations/discrepancies be noted claearly for necessary action
1.2.1 Remittances & Returns

S.No. Condition to be checked Whether met Action to be

(Y/N) taken
Whether the contribution payable at
1 the rate prescribed under the Act are
transferred to the Board of Trustees by
the employer by 15th of each month
following the month for which the
contributions are payable.
2 Whether contribution to EPS dues have In case of default
been deposited by 15th of each month? furnish month-wise
details
S.No. Condition to be checked Whether met Action to be
(Y/N) taken
Provide details of
the assessment
3 Whether any dues are pending? made u/s 7A and
recovery actions
initiated.
In case of delayed remittances, whether
interest in terms of Section 7Q &
4 damages U/s 14B of the Act has been
levied upon and received from the
employer?
If not, furnished
months-wise
5 Whether the employer has paid prescribed details: Whether
inspection charges within 15 days from the there are any
close of every month? assessed damages
outstanding against
the employer
If not, whether
Whether the Board of Trustees and suitable penal action
6 the employer file the prescribed has been taken
monthly/annual returns within the against the Board of
specified time limit? Trustees and the
employer jointly
1.2.2 Claim Settlements & Account Slips & Grievances

S.No. Condition to be checked Whether met Action to be taken

(Y/N)
Whether all claims are settled within the
maximum time frame prescribed by the
1 EPFO?

2 Whether there is an effective mechanism If yes, the same may

for redressal of grievances regarding claim be verified and
settlement (e.g., register of grievances described.
etc.)?
Provide details of
the assessment
3 Whether any dues are pending? made u/s 7A and
recovery actions
initiated.
Verification of the rejected/ returned
claims
4 The total no. of claims returned/
rejected during the year-
Percentage of the total claims during the
year-
Reasons for returns / rejections as
verified from records-
If not, furnished
months-wise
5 Whether the accounts in respect of the details: Whether
employees are maintained electronically? there are any
assessed damages
outstanding against
the employer
S.No. Condition to be checked Whether met Action to be taken
(Y/N)
If not, whether
Whether the members have access to suitable penal action
6 their accounts and can see their has been taken
account balance from the computer against the Board of
terminals? Trustees and the
employer jointly
Whether the board of trustees issued
7 an annual statement of account or
passbook to every employee within six
months of the close of the Financial/
accounting year free of cost once in a year?

In case if an employee who is already a

8 member of the EPF or the PF of an
exempted establishment is employed,
whether his accumulations with his
previous employer has been transferred and
credited in to his account by his new
employer?
The problems/grievance of the employees Their Claim related
9 as expressed by their representative Union difficulties be
or the employees’ trustees be listed specialty recorded.

1.2.3 Enrolment & Conditions

S. Condition to be checked Whether met Action to be taken
No. (Y/N)
Whether all the employees as defined under
1 section 2(f) of the Act are enrolled as
members?
2 Total number of P.F members in the trust Details in respect of
contributing and
S. Condition to be checked Whether met Action to be taken
No. (Y/N)
non-contributing
members be
furnished.
Details of the contract
In case of exempted/relaxed under section employees and
3 17(1)(a)/Para 79 whether all the contract contractors be
employees are enrolled to the trust furnished.
In case of exemption under para 27 or 27A Information to be
4 of the EPF Scheme, whether the collected
contributions of employees other than The no. of
those in respect of which exemption has employees exempted
been either granted or applied for have been u/p 27/27A
remitted into the statutory fund with the The no. of
RPFC. unexempted
employees-

NOTE: In respect of employees engaged by or through independent contractors with separate

provident fund code numbers, compliance would be into the statutory fund as unexempted
establishments. The following details be furnished
S. Name of PF Code No. of Office of EPFO Compliance
No. the No. employees where made up to
1 2 3 4 5 6
1.2.4 RATE OF INTEREST

S.No. Condition to be checked Whether met Action to be

(Y/N) taken
1 Whether the interest declared by the
Board of Trustees is at par with or higher
than that declared by the Central Govt?
If not, whether the employer has made
2 good the deficiency to bring it up to the Furnish the details
statutory limit.

Investments
Whether the Board of Trustees have invested (within 2 weeks from the date of receipt of the
said contributions) the amount of the provident fund as per the directions to the Govt. from
time to time.

Total Invested Corpus including SDS A/c (as on ____________) = Rs._________

Break up of total investments made during the financial year be provided in the below
format
Investment % Amount invested Norm Reasons for deviation, if
Pattern any

Government Minimum 45%

Securities and and Upto 65%
Related
Debt Investments
Instruments Minimum 20%
and Related and Upto 45%
Short-term Debt
Instruments and Upto 5%
Related
Equities and Related Minimum 5%
Investments. and Upto 15%
Asset Backed, Trust
Structured and Upto 5%
Miscellaneous
Investments.
S.No. Condition to be checked Whether met Action to be taken
(Y/N)
Whether on failure to invest as per the above
1 norm, the Board of Trustees separately and
jointly have been made liable to pay surcharge.
2 The total amount retained for obligatory
outgoing/expenses (as on….)
Whether the amount retained for obligatory
expenses are reasonable and proportionate to
the amount required for claim settlement etc.?

3 Whether the securities have been obtained in

the name of the Trust and in dematerialized
(DEMAT) form?
Whether the Board of Trustees has
4 maintained a script wise register and has
ensured timely realization of interest?

Whether DEMAT account has been opened

through depository participants approved by
5 RBI and Central Govt. in accordance with the
instructions?
Whether all the investments made like
6 purchase of securities and bonds have been
lodged in the safe custody of depository
participants?
Whether the details of the depository
7 participants in whose safe custody the
investments made in the name of the Trust
viz, in securities, bond etc. have been lodged
have been intimated to the RPFC?
Whether the Board of Trustees while raising
8 sums of money for meeting obligatory
expenses such as settlement of claims etc.
have taken prior approval of the RPFCs for
sale of the securities or other investments?
 Is there any case of non-delivery of
9 contracted/purchased securities/bonds/
script Furnish details.?

Whether any case of securities/ bonds which

10 could not be redeemed/encashed even after
their date of maturity. If yes complete details
thereof?

1.2.6 AUDIT OF ACCOUNTS

S.No. Condition to be checked Whether met Action to be

(Y/N) taken
1 Whether the accounts of the provident The date of
fund as maintained by the Board of submission of a copy
Trustees are audited annually by a of the auditors'
qualified independent Chartered report along with
Accountant? the audited balance
sheet to the RPFC
concerned to be
shared.
2 Whether it is ensured that the same
auditors are not appointed for two
consecutive years and for not more than
two years in a block of six years?
3 Whether the company has reported losses
for three consecutive financial years or
erosion in its capital base thereby invoking
condition no 25 of para 27AA?
4 Whether a show case notice/proposal for
cancellation of exemption has been sent for
violation of conditions 25 of para 27AA of
the EPF Scheme 52 ?
5 Whether the establishment is registered
with BIFR ?
S.No. Condition to be checked Whether met Action to be
(Y/N) taken
6 Whether the establishment is closed? If yes, whether any
action has been
initiated for
withdrawal of
relaxation/
forwarding of
proposal for
cancellation of
exemption. Please
specify with complete
details.
7 Whether all commission, incentive, Furnish details.
bonus, or other pecuniary rewards given
by any financial or other institution for
investments made by the Trust have
been credited to the trust's account?
8 Whether the loss to the PF trust has Complete details of
been made good by the the loss made good/
employer/establishment? recouped by the
establishment
including amount,
cheque/D.D no and
date of credit in the
trust account to be
collected
9 Whether all the expenses of the Furnish details.
administration of the provident fund has
been borne by the employer?

NOTE: A special note to be given on treatment of investment whether it is marked to

market or amortised or booked on face value with profit and loss transferred to a separate
proforma account etc.
1.2.7 OTHER BENEFITS

S.No. Condition to be checked Whether met Action to be

(Y/N) taken
1 Whether all amendments to the EPF
Scheme which are more beneficial to the
employees than the existing rules of the
trust have been automatically made
applicable pending formal amendment of
the rules of the Trust?

2 Whether any amendment of the rules has Furnish the details

been made by the employer without the
prior approval of the RPFC?

1.2.8 EDLI SCHEME COMPLIANCE

S.No. Condition to be checked Whether met Action to be taken

(Y/N)
1 Whether exempted under Section 17 If yes, Notification/
(2A) OR 17(2B) of the Act or relaxed Order no. and date of
under paragraph 28 (7) of the issue by appropriate
Employees' Deposit Linked Insurance authority/Government.
Scheme, 1976 ?
The date of expiry for
exemption to be
collected
2 Whether application for extension of If not, action to be taken
exemption has been made? for securing compliance
as unexempted
3 Whether the insurance policy purchased If complying as
by the establishment has been revised in unexempted for EDLI
view of the revision of EDLI benefits by whether the dues have
EPFO vide notification dated 18.06.10? been deposited timely.

1.2.8 MISCELLANEOUS IMPORTANT COMPLIANCE

Whether Board of Trustees has been duly reconstituted under the chairmanship of the
employer? If so when?
Complete details of all the participating units (if any) in the trust be provided in the below
format.
S. Name Name PF No. of PF Whether RPFC who Effective
No. of the of Code members exempted granted date of
PF participating No. or relaxation relaxation
Trust Unit relaxed /Permission
Or for
Establishment participation
1 2 3 4 5 6 7 8

Whether at least one representative each of the participating units has been made a member of
the common PF trust as per the provisions of para 79(C)(1)?

(SIGNATURES, NAMES & DESIGNATIONS OF THE MEMBERS OF THE

AUDIT TEAM)
FORM RM - 3
SUMMARISED INFORMATION REGARDING EXEMPTED ESTABLISHMENTS

Office………… Region…..………. Zone……..……

PART – I

a. Details of all the establishments exempted or relaxed under section 17(1) or under para
27A/27/79 (including cases where exemption applications are under process)

S. No. 1
Name of the Establishment 2
Whether exempted u/s 17(1)(a) u/p 27A/27/79 3
(Mention the Relevant Section or Para only)
Exempted Or Relaxed w.e.f 4
If exempted, The notification No. & date, Otherwise, 5
the relaxation order no. & date
Whether establishment has a separate code no. for 6
compliance under EPS -95
Total no. of Employees exempted (from EPF 7
Scheme, 1952)
If Exemption proposal pending with Head Office, 8
give reference number

b. Details of exempted establishments that are closed/ under liquidation or where

recovery or other actions are stayed by any Court

S. No. 1

Name of the Establishment 2

PF Code No. 3

Whether closed or under liquidation or stay order of 4

any court
Amount of dues recoverable 5
Whether relaxation withdrawn/ proposal for 6
cancellation of exemption submitted to Head Office

c. Exempted establishments in default:

S. No. 1

Name of the Establishment 2

PF code number 3

Exemption u/s 17(1) (a)/Para 27A/para 27 4

Nature of Default 5

Action Taken 6

d. Exempted establishments (u/p 27A) which have obtained separate PF code nos. for
compliance with the RPFC in respect of the unexempted category of employees

S. No. 1

Name of the Exempted Establishment 2

Code Number 3

Exemption u/s 17(1) (a)/Para 27A/para 27 4

Nature of Default 5

e. Exempted establishments under section 17(1) which have obtained separate code
no.(s)/sub-code no.(s) for compliance of contract employees with the RPFC: -

S. No. 1

Name 2
Code Number 3
Sub – Code Numbers 4
Compliance made up to 5

PART – II

a. Total no of exempted establishments in the office-

b. Total no. of establishments where compliance audit was conducted-
c. The establishments where violations of the conditions of exemption were
detected

S. No. 1
Name of the Establishment 2

P.F Code Number 3

Date of Compliance Audit 4
Nature of Violations 5
Whether relaxation withdrawn/ proposal for
6
cancellation of exemption submitted to Head Office
Remarks 7

Certified that except in the cases mentioned above under point c above, no other
establishment was found to have committed significant violations of the conditions of
exemption and hence no action (s) prescribed under the Act/scheme at present.

Regional PF Commissioner/ Officer-in-Charge

FORM RM - 4
SUMMARISED INFORMATION REGARDING EXEMPTED ESTABLISHMENTS

Zone……...……

PART – I

f. Details of all the establishments exempted or relaxed under section 17(1) or under para
27A/27/79 (including cases where exemption applications are under process)

S. No. 1
Name of the Establishment 2
Whether exempted u/s 17(1)(a) u/p 27A/27/79 3
(Mention the Relevant Section or Para only)
Exempted Or Relaxed w.e.f 4
If exempted, The notification No. & date, Otherwise, 5
the relaxation order no. & date
Whether establishment has a separate code no. for 6
compliance under EPS -95
Total no. of Employees exempted (from EPF 7
Scheme, 1952)
If Exemption proposal pending with Head Office, 8
give reference number

g. Details of exempted establishments that are closed/ under liquidation or where

recovery or other actions are stayed by any Court

S. No. 1
Name of the Establishment 2
PF Code No. 3

Whether closed or under liquidation or stay order of 4

any court
Amount of dues recoverable 5

Whether relaxation withdrawn/ proposal for 6

cancellation of exemption submitted to Head Office

h. Exempted establishments in default:

S. No 1
Name of the Establishment 2
PF code number 3

Exemption u/s 17(1) (a)/Para 27A/para 27 4

Nature of Default 5

Action Taken 6

i. Exempted establishments (u/p 27A) which have obtained separate PF code nos. for
compliance with the RPFC in respect of the unexempted category of employees

S. No. 1
Name of the Exempted Establishment 2
Code Number 3

Exemption u/s 17(1) (a)/Para 27A/para 27 4

Nature of Default 5

j. Exempted establishments under section 17(1) which have obtained separate code
no.(s)/sub-code no.(s) for compliance of contract employees with the RPFC: -

S. No.
1
Name
2
Code Number
3
Sub – Code Numbers
4
Compliance made up to
5
 PART – II

d. Total no of exempted establishments in the office-

e. Total no. of establishments where compliance audit was conducted-
f. The establishments where violations of the conditions of exemption were
detected

S. No.
1
Name of the Establishment
2
P.F Code Number
3
Date of Compliance Audit
4
Nature of Violations
5
Whether relaxation withdrawn/ proposal for
cancellation of exemption submitted to Head Office 6
Remarks
7

Certified that except in the cases mentioned above under point c above, no other
establishment was found to have committed significant violations of the conditions of
exemption and hence no action (s) prescribed under the Act/scheme at present.

Regional PF Commissioner/ Officer-in-Charge

ANNEXURE – C
Sl. Name & PF Code No Total No. of Employers No. of
No. address of of Amount employee contribution Employees
the Contractors paid as engaged paid by the enrolled by
Contractor wages by by employer to the
the contractor the contractor
contractor contractor as PF
members
and
employers
contribution
deposited
with EPFO.

4.3 (b) Whether the employer’s share is being reimbursed to :

such Contractor by the establishments. Please specify
the details.

V CLAIM SETTLEMENTS, ISSUANCE OF ACCOUNTS SLIPS/PASS

BOOK/MEMBER GRIEVANCES

5.1 Whether all claims are settled within the maximum time :
Frame prescribed by the EPFO (condition no. 12)

Sl. Name & PF Date of Date of Delay in days

No. Account filing of settlement of
No. of the claim with claim
Member BoT (in case
of repeated
filing all
dates be
mentioned)

5.2 Whether there is an effective mechanism framed by :

 Establishment for redressal of grievances related to
Provident Fund. If yes, the details thereof. If not,
specify the reasons.

5.3 Whether the Loans/Advances to the members have been :

sanctioned strictly according to the eligibility as
delineated in the EPF Trust Rules, approved by the RPFC
and no deviation has been made. In case of default, list
of such cases may be submitted.

Sl. Name & PF Purpose for Anomaly with regard

No. Account No. of which to Trust Rules
Member Loan/Advance
Sanctioned

5.4 Verification of the rejected/returned claims :

(i) Total number of claims received during the year :
(ii) Total number of claims settled during the year :
(iii) Total number of claims returned/rejected. Reasons :
for return/rejection as verified from records and
percentage of return/rejection

5.5 Whether the accounts in respect of the employees are :

Maintained electronically and whether the members have
Access to their accounts and are able to see their account
Balance from the computer terminals.
(condition no. 13 & 15)

5.6 Whether the Board of Trustees has issued an annual :

Statement of accounts or passbook to every employee
Within six months of the closed of the financial/
Accounting year. (condition no. 14)
5.7 In case if any employee who is already a member of :
The EPF or the PF of an exempted establishment is
employed, whether his accumulations with his previous
employer have been transferred and credited into his
accounts by his new employer. (condition no. 4)

5.8 Whether there are cases of Stale Cheque/undelivered :

cases where no action has been taken by the BoT for
re-authorization. If yes, specify the cases.
5.9 Whether the platform of the EPF Trust has been used for :
un-authorized private investments from members. The
details of contributions/subscriptions other than
deducted from the Salary/Wages of the employees’ may
be detailed.

Sl. Details of un- Amount Name of the remitter member

No. authorized Remitted
investment

5.10 Whether there are any cases of irregular deduction of :

advances from the salary of the member. If yes, please
specify.

VI Rate of Interest:

6.1 Whether interest declared by the Board of Trustees is at :

par with or higher than the declared by the Central Govt.
If not, please specify the source of funding the interest
gap by the Trust.
6.2 Whether Credit of Interest in the members Account is on :
Monthly Running Balance.
VII Investments
7.1 Whether the Board of Trustees has invested (within 2 :
 Weeks from the date of receipt of the said contributions)
The monies of the provident fund as per the directions of
The Govt. from time to time. (condition no. 17)

Sl. Wage Investible Date of Date of Delay in days

No. Month Funds receipt of Investment with reasons
funds by
the BoT

7.2 Total Invested Corpus as on 31st March, 20____ :

(Purchase value after the amortization).

7.3 (a) Whether the entire amount received by the BoT :

from the establishment on account of EPF Contributions,
reduced by obligatory payment made on account of
settlement/loan/advances/transfer-out etc. has been
invested as per the latest prescribed pattern of
investment notified from time to time. In case the
Investment Pattern is not adhered to, the deviated
amounts liable for surcharge as provided in condition
no. 17 of Appendix – A annexed Para 27AA of the EPF
Scheme, 1952 may be mentioned. (condition no. 17)
Note: Investment pattern notified for EPFO being
reflected here subject to final notification for exempted
funds. The Table below-shall be suitably modified in
accordance with the investment pattern notified by
the Government. (condition no. 17)
(b) Whether on failure to invest as per the norms, the :
Board of Trustees separately and liable to pay
surcharge. (condition no. 17)
Investment % amount Norm Quantum Reasons Amount
Pattern invested of Amount for liable for
during the deviated deviation, surcharge
year if any
1 2 3 4
Government Minimum
Securities and 45% and
Related Investments Upto 65%
Debt Instruments Minimum
and Related 20% and
Investments Upto 45%
Short-term Debt Upto 5%
Instruments and
Related Investments
Equities and Related Minimum
Investments 5% and
Upto 15%
Asses Backed, Trust Upto 5%
Structured and
Miscellaneous
Investments
Total

7.4 Whether all off market transactions have been made :

on authorized platform or have been reported to
authorized platforms. Please give details. If not,
please give details.

Sl. Nomenclat Face Purchase Deal Deal date Reasons as Maximum

No. ure of Value Price Amount as per quoted by BoT and minimum
Investment Deal for not Rate of the
Note reporting the investment as
transaction. reported on
the platforms

7.5 (a) Whether all the investments made like purchase :

of securities and bonds have been lodged in the
 safe custody of Depository Participants (DP).
[condition no. 18(d)]
(b) Whether there is any mismatch between the :
statement of holdings issued by the depository
and the investment holding as per the balance
sheet of the trust. Details of investments not
shown by depository by specified.
(c) Details of investment in Physical mode which :
could not be converted into De-Mat mode, due to
non-allotment of ISIN number.
Sl. Nomenclature Face Purchase Deal Date Remarks
No. of Investment Value Price

(d) Is there any case of non-delivery of contracted :

investment instruments/script. Furnish details.
7.6 Total amount retained for obligatory outgoing/ :
expenses at the end of the financial year.
7.7 Whether the amount retained for obligatory expenses :
is reasonable and proportionate to the amount required
for claim settlement etc.
7.8 Whether DEMAT account has been opened in the name :
of the Trust through depository participants approved
by RBI and Central Govt. in accordance with the
instructions. Details of DEMAT account no. and
Depository participants. In case of default the details
be specified in the format. [condition no. 18 (a)]

Sl. Nomenclature of the Title holder

No. Investment

7.9 Whether the Board of Trustees has maintained a script :

wise register and has ensured timely realization of
 interest & Maturity proceeds. If there is delay in receipt
of maturity proceeds or the interest, the overdue interest
and maturity proceeds may be worked out in the format.
[condition no. 18(b)]
Sl. Nomenclature Face Value Interest Date of Date of Delay Overdue
No. of the of the Payment/ lodging of Receipt in interest
Investment Investment Date of claim in of the days
maturity case of amount
investment by the
in physical BoT
form

7.10 Whether the Board of Trustees in order to meet :

obligatory expenses has prematurely redeemed
any investments? If yes, whether prior approval
of RPFC obtained. (condition no. 20)

7.11 Whether the mutual funds in which the BoT has :

invested the money are of the prescribed Gilt
Funds set up as dedicated funds for investment
in Government Securities and approved by the
Security and Exchange Board of India.
(to be revised as per the latest pattern)

Sl. Name of the Type of Amount *NAV as Option (Growth/ Details

No. Mutual Funds Fund Invested on date of Dividend of
Scheme Purchase Reinvestment/ approval
Dividend of the
Payout) Fund by
SEBI

7.12 Whether the loss/profit on Mutual Fund has been :

booked on redemption/on the year end or fall/rise
in NAV as the case may be.
7.13 Whether all commission, incentive, bonus or other :
pecuniary rewards given by any financial or other
institutions for investments made by the Trust have
been credited to its account. Furnish the details.
(condition no. 21)

Nomenclature Nature of incentive Amount Date of credit

of Investment (Commission/bonus/pecuniary in the BoT
Reward) Accounts

7.14 Whether the surplus income earned is being used :

only for the benefit of the members.

7.15 Has TDS been deducted on interest/maturity payments :

on any of the investments made by the Trust so far?
If yes, amount and whether it has been refunded by IT?
Balance amount be mentioned.

Sl. Assessment Investment TDS TDS Details of

No. Year nomenclature amount Certificate claim filed by
Details BoT for
Refund.

VIII Audit of Accounts

8.1 Whether the accounts of the provident fund as :
maintained by the Board of Trustees are audited
annually by a qualified independent Chartered
Accountant. (condition no. 24)
8.2 The date of submission of a copy of the auditors’ :
report along with the audited balance sheet to the
RPFC concerned. (condition no. 24)
8.3 Whether it is ensured that the same auditors are not :
 appointed for the two consecutive years and for not
more than two years in a block of six years.
(condition no. 24)
8.4 (a) Whether the Company has reported loss for three :
consecutive financial years or erosion in the capital
base thereby invoking condition No. 25 of Appendix-A
annexed to Para 27AA of the EPF Scheme, 1952.
(condition no. 25)
(b) Whether the establishment is registered with BIFR :
8.5 Whether any loss has been caused to the provident :
fund. (condition no. 6 & 28)
8.6 In case of losses to the BoT on account of defalcation, :
overpayment, wrong/fraudulent payment, wrong
investment decision etc. whether it has been made
good by the employer and not from the reserve/
surplus of the EPF Trust. (In case of defalcation/
fraudulent payment modus operandi to be detailed.
(condition no. 28)

Particulars of losses Year Ended Previous Year

31/03/20__ ended
31/03/20__

Loss on account of Junk investment (No

interest and Maturity received)
Capital Loss on premature encashment of
investment for obligatory expenses
Fraudulent/Overpayment/Embezzlement/
Defalcation
Interest Due but not received
Others (Please specify)
8.7 Complete details of the loss made good/recouped :
by the establishment including amount, Cheque/D.D.
no. and date of credit in the trust account.
(condition no. 28)
8.8 Details of losses, if any, written off by the Board of :
Trustees. (condition no. 28)
8.9 Whether all the expenses of the administration of :
the provident fund have been borne by the employer.
Furnish the details. (condition no. 6)
8.10 Whether there are any un-recorded amounts. If yes, :
please specify.
8.11 A special note to be given on treatment of investment :
whether it is marked to market or amortised or booked
on face value. In case marked to market:
(i) Value of assets on M to M bases :
(ii) Value of assets on purchase price (amortized) :
(iii) Difference as on 31st March ____ :
8.12 In case the Investment is booked at Cost and premium :
is amortized, the amount yet to be amortized as on year
ending is Rs. ________________.

IX International Workers
9.1 Whether appropriate amendment has been made in the :
PF rules in regard to International workers.
9.2 Whether compliance in respect of foreign passport holders :
is being made on full wages.
9.3 Details of COC obtained (outward) cases and compliance :
thereof in the PF Trust.
9.4 Details of COC exempted (inward) cases. :
9.5 Details of COC overstayed cases, if any, and action :
thereof.
9.6 Details of settlement of claims under the special :
provision, if any.
X Others
10.1 Whether any amendment of the rules has been made :
by the employer without the prior approval of the RPFC.
10.2 Whether there is any unclaimed or amount lying in :
forfeiture account PF amount with the trust? If yes, the
 details thereof.
10.3 Number of disabled workers, PF contribution (Employees :
share remitted to the Trust and Government Contribution
as per Para 82 of the Statutory Scheme).

It is certified that the above information has been verified from relevant
original records and is an accurate reflection of the Financial and Compliance
position of the Establishment and Exempted Trust.

(SIGNATURES, NAME & SEAL OF THE AUDITOR)

8.3 Forms used in SOP of Cancellation of
Exemption
Sl. No FORM Description
1. FORM CE-1 Show-cause Notice to be issued by the Regional Office
2. FORM CE-1(R) Format for relaxation/withdrawal.
Draft agenda by Regional Office for placement before
3. FORM CE-2
the EEC along with the document checklist
Draft Show-cause Notice to be issued by the
4. FORM CE-3
Appropriate Government
Zonal Office communication to be forwarded to the
5. FORM CE-4
Head Office regarding proposal of Regional Office
Zonal Office communication to be forwarded to the
6. FORM CE-5
Head Office regarding proposal of Regional Office
7. FORM CE-6 Priority Matrix indicated in Para 12 of this SOP
8. FORM CE-7 Consolidated Report to be sent to ZO by RO
9. FORM CE-8 Consolidated Report to be sent to HO by ZO
10. FORM CE-9 Withdrawal of exemption under Condition No. 25
11. FORM CE-10 Withdrawal of exemption under Condition No. 25
RPFC’s directions to the exempted Trust’s Depository
12. FORM CE-11 participants to transfer the investment corpus of the
Trust to CBT
FORM CE - 1
(Show-cause Notice)
(Under Appendix” A” of Para 27AA of the EPF Scheme,1952)
Whereas the establishment ……………… was granted exemption under Section 17(1)(a)
by the ………………. being the Appropriate Government vide Notification No. …………………
Whereas the revised conditions of the exemption indicated in Appendix-A of the
Scheme are applicable to all exempted establishments vide GSR 853(E) with effect from.
30.10.2003.
Whereas compliance audit of the establishment conducted on …………. detected the
following violations of the revised conditions of exemption: -
(i) ………………. (Condition No….); Category
(ii) ………………. (Condition No….); Category
& so on.

Now therefore, the employer and the Board of Trustees (BOT) are directed to show
cause within 15 days from the receipt of this notice as to why a report be not sent to the
appropriate Government; as regards violations of the conditions of exemption delineated
under Appendix” A” of Para 27AA of the EPF Scheme,1952 for necessary action.
(……………..)
Name of the RPFC

Date: (.…………)

To,
1) The Employer (………….)

2) Chairman Board of Trustees (………….)

 FORM C.E. 1-R
(Withdrawal of Relaxation)
(Show-cause Notice)
Whereas the establishment ……………… was granted relaxation under Para 79 by the
………………. vide Notification No. …………………
Whereas the revised conditions of the exemption indicated in Appendix-A of the
Scheme is applicable to all exempted establishments vide GSR 853(E) with effect from.
30.10.2003.

Whereas a compliance audit of the establishment conducted on ………….. Detected

the following violations of the revised conditions of exemption: -
(iii) ………………. (Condition No….); Category
(iv) ………………. (Condition No….); Category
& so on.

Now therefore, the relaxation granted to the establishment under Para 79 of the
Scheme is withdrawn and the employer and the Board of Trustees (BOT) are directed to
comply with the provisions of section 17(5) of the EPF Act read with Para 28 of EPF
Scheme.

(……………..)
Name of the RPFC

Date: (………..…)

To,
1) The Employer (………….)

2) Chairman Board of Trustees (………….)

FORM C.E - 2
Draft Agenda to be placed before the EEC by Regional Office

Item No… Cancellation of Exemption under section 17(1)(a) of the EPF & MP Act, 1952 /
Para 27A of EPF Act (As applicable) in respect of __Establishment name__ (__code
number__)
The cancellation of exemption is governed by Section 17(4) of the Employees' Provident
Funds & Miscellaneous Provisions Act, 1952. The cancellation of exemption is proposed for
failure to adhere to the conditions imposed while grant of exemption by the Appropriate
Government.

Section 17(4) of the Employees' Provident Funds & Miscellaneous Provisions Act, 1952, is
reproduced below:

(4) Any exemption granted under this section may be cancelled by the authority which
granted it, by order in writing, if an employer fails to comply, -
(a) in the case of an exemption granted under sub-section (1), with any of the conditions
imposed under that sub-section 15 or sub-section (1A) or with any of the provisions of sub-
section (3);
(aa) in the case of an exemption granted under sub-section (IC), with any of the conditions
imposed under that sub-section; and]
(b) in the case of an exemption granted under sub-section (2), with any of the provisions
of sub-section (3);
(c) in the case of an exemption granted under sub-section (2A), with any of the conditions
imposed under that sub-section or with any of the provisions of sub-section (3A);
(d) in the case of an exemption granted under sub-section (2B), with any of the provisions
of sub-section (3A).
Brief Introduction:
M/s. ................................. bearing code no .............. was granted exemption under
Section .......... of EPF & MP Act, 1952 vide notification No. ............... dated ................... The
establishment has a Provident Fund Trust in the name of “.....................”. The corpus of the
Trust as per balance sheet as on _________ was Rs. _________ for .............number of
members.
The cancellation of exemption is proposed because of violation of various conditions of
Appendix-A to Para 27AA of the EPF Scheme, 1952 noticed through.................................
(Compliance Audit Reports etc.). The establishment has been given opportunities to show
cause by way of show cause notices dated ............................in line with Condition No. 27 of
Appendix “A” OF Para 27AA of the Scheme. However, the reply is unsatisfactory.
2. Details of the establishment:

Sl. Name of the Establishment

No
1. Code No.
2. RPFC/RO

3. Zonal Office
4. Name of the Trust
5. Exemption Notification details
6. Appropriate Government
7. Date of Exemption
8. Date of last constitution of trust

9. Statutory Provision empowering

cancellation
10. Working/Closed establishment
11. Number of reported EPF/EDLI
members
12. Reported Corpus as on
13. Contribution received up to
14. Rate of interest for last three years
(This is at Par with EPFO declared
rates)
15. Compliance Audit Completed up to
16. Third-Party Audit conducted up to
17. Date from which the cancellation
is sought

3. Violations reported/submissions of establishment/views of EPFO are as below:

Condition Deviations Show Establishment’s Jurisdictional Zonal

No. Cause reply RPFC views Office
Notice views
date

4.1. Third-Party Audit Report of FY 20xx-xx dated _______ (Annexure - H):

i. Corpus of the Trust as on _________ was Rs. _________
ii. RPFC has certified that the financial health of the establishment is good and no
liability is likely to arise on EPFO currently, on account of cancellation of
exemption. (Annexure - D)
4.2. Observations on Compliance of establishment:
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………

Compliance Audit Report for last three years:

 Year 1:
 Total invested corpus was ____________ with employment strength of ____ (PF
Subscribers: ____, EPS members: ___).

 Year 2:

Total invested corpus was Rs. __________ with the employment strength of ___
(PF Subscribers: ____, EPS members: ___).

 Year 3:

Total invested corpus was Rs. __________ with the employment strength of ___
(PF Subscribers: ____, EPS members: ___).

5. Actions taken to arrest violations and secure worker’s entitlements

Briefly state the proactive actions taken by EPFO:

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………
6. Case for the suitability of cancellation

The proposal has been examined in the light of statutory provisions and administrative
Circulars on cancellation and is found to be a fit case to be placed before the committee on
Exempted Establishments for its recommendation for cancellation of exemption.
Violations in condition No. ___, ___, ____ enunciated in Appendix-A to Para 27AA of
EPF Scheme 1952, have come to notice.
The establishment was given an opportunity for rectifications vide communications
dated ......., ......., ...... The response/replies of the establishment are found to be
unsatisfactory. Following specific violations continue against the scheme provisions and the
conditions of grant of exemptions. Hence, the recommendation for cancellation of
exemption to be placed before the EEC.
 1.
2.
3.
7. Court case / Liquidation matter if any.
Recommendation:
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
…………………………………………………………………

8. The proposal of cancellation of exemption if considered appropriate shall be

forwarded to the Appropriate Government along with the following documents:
i. Proposal for cancellation in specified format. (Annexure-A)
ii. Copy of notification granting exemption. (Annexure-B)
iii. Copy of Draft Show Cause Notice. (Annexure-C)
iv. Report of Jurisdictional RPFC regarding Financial Health of the Trust. (Annexure-
D)
v. Report of Jurisdictional RPFC regarding compliance status of the
establishment. (Annexure - E)
vi. Report of Third Party Auditor ascertaining the financial health of the
Trust (Annexure – F)
vii. Copy of Third-Party Audit for FY 20xx-xx (Annexure-H)
viii. Copy of Compliance audit report for 20xx-xx and 20xx-xx. (Annexure-I)
ix. Draft notification for cancellation. (Annexure-J)
x. Information as per Draft Template of MoL & E for Surrender/Cancellation of
exemption granted under Para 27A/Section 17(1)(a) of the EPF & MP Act, 1952.
(Annexure-K)
xi. Online return for the month of ___20xx (Annexure-L)
xii. Show cause Notice dated _______ issued to establishment. (Annexure-M)
xiii. Establishment reply to notice dated _______ (Annexure-N)
9. Justification about non availability of any prescribed document.
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
Proposal: The proposal for cancellation of exemption granted u/s …………. of the EPF &
MP Act, 1952 in respect of ____________________________, by the Government of
__________ vide notification no. ____________________ dated ____ is placed
before the Committee for Exempted Establishments for consideration being the
Appropriate Government. The recommendation / observation shall be further placed before
the Central Board of Trustees, for consideration.

A CHECKLIST OF RELEVANT DOCUMENTS TO BE ENCLOSED

Checklist of supporting documents:
i. Original notification granting exemption.
(Note: a. where notification for grant of exemption is available either at the
Regional Office or at the exempted establishment/Trust, the copy of such
notification may be provided.
b. Where the copy of the original notification is also not available, however,
order number of the grant of exemption, efforts should be made to obtain the
copy of the order from the appropriate government.
c. Where the original grant of the exemption is also not available at the
appropriate government, Jurisdictional RPFC shall withdraw the relaxation
granted earlier and facilitate the transfer of funds.)
ii. Copy of the relaxation withdrawal order if any.
iii. Report of Jurisdictional RPFC regarding financial health of the Trust. The template
is as below:

On the basis of the online ECR reports, this is to certify that monthly EPF
compliance in respect of the establishment M/s. ________ (code number ______)
is received up to ______. Damages & Interest have been levied up to ______ as
applicable and the levied dues collected.
The pension fund contributions as well as Administrative Charges
contribution of the trust received up to ____. Further, it is also certified by the Third
Party Auditor that there is no liability likely to arise on EPFO.
Further, the losses if any incurred by the Trust, have been liquidated by the
establishment. This certificate is issued without prejudice to any 7A (for evasion of
membership) or 14B proceedings for levy of damages/FIR/Prosecution instituted
against the establishment as well as any hidden losses not detected by compliance
 Audit/Third Party Auditors as such proceedings can continue even after cancellation
of the exemption.

(RPFC-I/OIC)

iv. Draft Notification for cancellation:

NOTIFICATION
Whereas M/s. ______________ bearing code No. ___________ in
_______________ Region has applied for surrender of exemption granted by
the ______ Government under clause (a) of sub-section (1) of section 17 of the
Employees Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952)
(hereinafter referred to as the Act) / Para 27A of the EPF Scheme,1952 (hereinafter
referred to as the Scheme) (as applicable).

2. Whereas a notification bearing No. G.O. __________ dated ________ granting

exemption to the said establishment under clause (a) of sub-section (1) of section 17
of the said Act / Para 27A of the said Scheme w.e.f. ___________
3. And whereas now it has come to the notice to the _______Government that the
establishment has found violating conditions of Exemption under the provisions of
EPF & MP Act 1952 and EPF Scheme, 1952.
4. Now, therefore, in exercise of the powers conferred by sub-section (4) of section 17
of the said Act, the ______________Government hereby cancels the exemption
granted to the said establishment with effect from______________

(____________________)
Secretary to the Government

v. Documents through which the alleged deviations/violations can be supported:

a. Copy of third-party audit report (From the proposed date of cancellation to the
preceding month of the submission of cancellation proposal by Regional Office)
 If cancellation is proposed to be from prospective date, then third party audit of
one-year period prior to the month of forwarding the cancellation proposal to Zonal
office by Regional office is to be enclosed.)

(Note: Where the third party audit can’t be completed, e.g., closed establishment
/establishments under liquidation /establishment/ Trust under seizure by any
other law-enforcing authority or by wilful non- cooperation by the
employer/Trustees, the RPFC shall proceed with the cancellation without it,
subject to the condition that the same shall be mandatorily required to be
conducted by Jurisdictional RPFC at the time of transfer of past
accumulations/corpus post-decision by the appropriate government. The fee of
the audit shall be borne by the employer/establishment as per the conditions of
exemption.)

b. Compliance audit for the last three years from the date of proposed
cancellation, date of closure, date of liquidation.
c. Documents related to closure/liquidation/change of legal status.
d. Legal opinion, wherever applicable/necessary.
e. Details of deviations of investment along with the status of recovery of
surcharge, if any.
f. Details of non-filing of online returns and non-obtaining the requisite marks
in the ranking system, if such violations are also among the cause for
cancellation/non-renewal.
g. Order by the appropriate government/any other law-enforcing agencies, if any.
h. Documentary evidence in support of non-eligibility for exemption/renewal.

In case of any difficulty arising in the completion of documentary evidence in respect of any
exempted establishment as per the aforementioned list and notes therein, the proposal for
cancellation should be forwarded along with the recommendations of the Zonal ACC as well
as RPFC for seeking relaxation of the circular provisions by the CPFC/EEC on a case-to-case
basis.
 Annexure – A (Proposal of cancellation of Exemption)

Proposal for Cancellation of Exemption in respect of ______-Regarding.

i) Name of the applicant Establishment :
ii) P.F Code No. :

iii) Address of the establishment :

iv) a) Name of the PF Trust :
b) Single PF Trust or Common PF Trust? :

c) If common PF Trust, Details (Name, :

Code No., etc. of the Principal
Establishment holding the PF Trust)?
v) Address of the PF Trust :

vi) Kind of Exemption (Under Section :

17(1)(a)/Para 27A)
vii) Date of Grant of Exemption :
viii) Notification No. and Date :

ix) Appropriate Govt. :

x) Case of cancellation or surrender of :

Exemption?
xi) In case of Cancellation of Exemption

a) Draft Show Cause Notice :

b) Condition or Provisions of the Act and :

Schemes Violated
c) Copy of Notification/ Order granting :
exemption
d) Copy of Third Party Audit Report. 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.
 e) Report of RPFC regarding Compliance :
status
f) Assessment of the RPFC regarding :
financial health of the Trust. 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.

II. Any other Fact (s) having bearing on the processing of proposal for cancellation of
exemption.
 RPFC Certificate (Annexure E)
(Regarding up-do-date compliance status)
1. Name of the establishment
2. Name of the Board of Trustees (BOT)
3. PF contributions paid up to
4. PF contributions in default for the Periods
5. Dues Assessed, if Any
6. Balance sheets of the establishment audited up to
7. Balance sheets of the BOT audited up to
8. Statement of Annual Accounts issued to
members up to
9. Periodic Returns submitted up to
10. Amounts in Default, in any
11. Any loss or Deficit suffered by the BOT
12. The loss/Deficit made Good by the establishment
13. Action Taken ______________________

(RPFC/OIC)
________________________________
 Third Party Audit Certificate (Annexure-F)

On the basis of Third Party Audit conducted into the books of accounts of the
________________________________________________________- Trust,
which was
formed due to exemption granted to establishment,
M/s._________________________________________________ (Code
No.________________), this is to certify that the financial health of the trust is sound
and is sufficient to balance the liability arising out of the subscribers, members and
accounts maintained by the said trust and no liability will occur to Employees Provident
Fund Organisation on account to the intended cancellation of Exemption.

()
Chartered Accountant
Office__________
Date: _____________
 (Annexure – K)
Draft Template for Surrender/Cancellation of Exemption granted under Para
27A/17(1)(a) of the EPF & MP Act, 1952 (Template as per MoL&E letter No. S-
35017/3/2018-SS. II dated 18.09.2018)
S Subject Status Remarks
No
1. Name and code of the establishment
2. Date of Grant of exemption to the
establishment and under which
section/Para the exemption was granted
(i)Whether under Section 17 of the EPF &
MP Act, 1952; or
(ii)Whether under Para 27 of EPF
Scheme, 1952
3. Date on which the establishment has
started as an un-exempted establishment.
4. Date of application of
Surrender/Cancellation of exemption by
the establishment.
5. Date from which Surrender/Cancellation
of exemption has been sought?
(a)Grounds for Surrender/Cancellation of
exemption.
6. Whether the establishment followed all
the conditions of exemption as specified
in Para 27AA of the EPF Scheme, 1952
and pattern of investment as notified from
time to time,
(i)If no, details thereof (Clearly mention
the condition/violation)
(ii)Action taken against such violations.
(iii)Whether, certificate in this regard has
been submitted by the concerned
S Subject Status Remarks
No
competent authority (also enclose a copy)
and details thereof.
7. Categorization of investment as per
pattern of investment (during the period
of exemption)
(i)Government Securities and Related
Investments
(ii)Debt Instruments and Related
Investments.
(iii)Short-term Debt Instruments and
Related Investments
(iv)Equities and Related Investments
(v)Asset Backed, Trust Structured and
Miscellaneous Investments.
8. Whether the establishment has
transferred all the past accumulations as
per Para 28 of the EPF Scheme, 1952
along with Past accumulations statement
and compliance as an un-exempted
establishment,
(a)If yes, details thereof (Category wise,
Amount and date)
(i) Government Securities and Related
Investments
(ii) Debt instruments and Related
Investments
(iii)Short-term Debt Instruments and
Related Investments
(iv) Equities and Related Investments
(v) Asset Backed, Trust Structured and
Miscellaneous Investments
S Subject Status Remarks
No
(b) If Not, details thereof and reason
therefor.
9 Whether the annual statement of accounts
or pass books issued to every employee
within six months of the close of
financial/accounting year free of cost once
in the year

10. The amount of interest paid by the

establishment to its employees on the PF
accumulations during the last three years:
(i)First year
(ii)Second year
(iii)Third year
11. (i)Whether the rate of interest paid during
the last three years was less than the
interest decided by EPFO.
(ii) If yes, the reason thereof.
12. (i) Whether there is amendment to the
rules of the establishment during the
period of such exemption?
(ii)If yes, whether prior approval of the
RPFC was obtained?
13. Whether the establishment is regular in
filing various monthly and annual returns
prescribed by EPFO?
14. Whether there is any change of legal
status of the establishment after grant of
relaxation?
15. Whether the establishment is regular in
S Subject Status Remarks
No
submission of Audited Balance Sheet
along with the Auditor’s report

Encl: Docs as per checklist.

Dated: RPFC-I/OIC (Regional

Office)
FORM C.E - 3
(For the appropriate Government)
Whereas M/s. _____ bearing code no. ______ is an establishment to which
exemption has been granted w.e.f. ______ vide Notification No. _________ dated
__________ under section 17(1)(a) of the Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952/under Para 27A of The Employees Provident Fund Scheme, 1952 and is
maintaining its own PF Trust.
And, whereas on examining the Annual Compliance Audit Report/Balance Sheet &
other documents/records of the establishment, it has come to the notice that the
establishment has reported following violation of conditions as per Appendix “A” under Para
27AA of revised conditions for grant of exemption of the EPF Scheme, 1952:
Sl. Description Violation of conditions
No.
1.

Now the Managing Director, being the person responsible for the conduct of business
of the establishment and also responsible for compliance of the provision of EPF & MP Act,
1952 and Schemes framed there under and being an employer covered within the definition
of employer as defined under Section 2(e) of the Act, is hereby directed to Show cause as to
why the exemption granted under u/s 17(1)(a) of the Employees Provident Fund and
Miscellaneous Provisions Act, 1952/ under Para 27A of The Employees Provident Fund
Scheme, 1952 may not be withdrawn and the establishment may not be directed to comply as
an un-exempted establishment, for violation of above mentioned conditions. The reply
should be submitted within 15 days of receipt of this letter, failing which it would be
presumed that you have nothing to submit in this matter and cancellation order shall be
issued without any further intimation/reminder.
( )
Appropriate Government
To
(1) The Employer
(2) The Board of Trustees
FORM C.E - 4
Recommendation to be forwarded by the concerned Zonal Office

Item No. _: Surrender/Cancellation of Exemption under Section 17(1)(a) of the

EPF & MP Act, 1952/Para 27A of the EPF Scheme, 1952 in respect of __ code
No. __.

The draft template of agenda regarding proposal for cancellation of exemption in

respect M/s. ________, Code No. (_____) has been received from RPFC-1, RO-_____
vide letter No. __________ Dated _______.

The complete proposal along with the supporting documents has been examined in
light of the statutory provisions and is recommended for placing before the Committee on
Exempted Establishments for consideration of cancellation of previously granted exemption
and the same is being forwarded to Head Office.

(ACC/ACC (HQ)

Zone

Date_________
FORM C.E - 5
(For H.O)

To,
The Appropriate Government,
Add: ………….........................
Sub: Cancellation of Exemption under Section 17(4) of the EPF & MP Act, 1952
in respect of ……………………………………- Reg.
Madam/Sir,
The establishment ………………. bearing code no. ………………. is an establishment
covered under Employees' Provident Fund and Miscellaneous Provisions Act 1952. The
Establishment was granted Exemption under Section 17(1)(a) by the ………………. being the
Appropriate Government vide Notification No. …………………
2. During the Compliance and Third-party inspection, Regional Provident Fund
Commissioner, RO ………. noticed violation of Condition(s) No. ……………………………………….
as enunciated in Appendix-A to Para 27AA of the EPF Scheme, 1952. Show cause notice was
accordingly issued vide letter dated: ………………
3. The establishment has failed to reply to the Show-cause notice/The reply of the
establishment to the Show-cause notice was not found satisfactory. Accordingly,
Jurisdictional Regional P.F. Commissioner, RO …………. vide letter dated: ………….and Zonal
Additional Central Provident Fund Commissioner, ZO………. vide letter dated: ………….
proposed cancellation of Exemption granted to the Establishment.
4. The proposal for cancellation of exemption was placed before the Exempted
Establishments' Committee of the Central Board, in their …………th meeting held on ………….
and subsequently before the ……….th meeting of the Central Board of Trustees, held on
……………….
5. The Central Board of Trustees, has recommended the cancellation proposal in
respect of the establishment ………………… under section 17(4) of EPF & MP Act, 1952.
6. In this context, please find the following documents for perusal and consideration for
an order regarding cancellation of exemption in respect of the establishment
…………………………… under Section 17(4) of EPF & MP Act, 1952: -

(i)………….
(ii)…………. & so on.
7. A copy of the formal order may kindly be sent for updating our records and for
ensuring compliance under Section 17(5) of the Act read with Para 28 of the EPF Scheme.

Yours faithfully,

Encl: As above
(Name……………………)
Addl. Central P.F. Commissioner (Exemption)
FORM C.E - 6
(Priority Matrix)
For Category A: Immediate actions to be taken for cancellation of exemption by issuance of a Show Cause Notice.
For Category B: Establishment may be directed to rectify the deficiency. If the same is not met, cancellation process to be initiated.
If violation is being done on 2 consecutive occasions without rectification, then cancellation process to be initiated.
For Category C: Establishment may be advised to be vigilant in the matter in future. If violation is being done on 3 consecutive
occasions without rectification, then cancellation process to be initiated.

Sl. Category Category Category Source Document

Conditions
No. A B C and Frequency

1. Compliance audit;
The establishment has reported a loss for the A
Annual
three consecutive financial years or erosion in
their capital base. (Condition 25)

2. Compliance audit;
Losses occurred to the P.F. Trust have not been A
Annual
recouped by the employer/establishment.
(Condition 28)

3. Online ranking;
Default in payment of P.F. & allied dues. A
Monthly
(Condition 05)
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

4. Compliance audit;
Evasion in membership of all category of A
Annual
employees as defined in Section 2(f).
(Condition 03)
5. Annual responsibility
(a) The Trust has not ensured audit of the A
to submit on
accounts of the Provident Fund
Establishment,
(b) The audited balance sheet is not submitted
Annual
to the Jurisdictional RPFC by the Auditors
directly within six months after the closing of
the financial year from 1st April to 31st March.
or

(c) Same auditors have been appointed for two

consecutive years and more than two years in a
block of six years. (Condition 24)
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

6. Compliance Audit,
Legal status of the establishment has changed A
Annual.
due to merger, demerger, acquisition, sale
In addition, If RPFC
amalgamation, formation of a subsidiary,
is intimated about
whether wholly owned or not, etc.,
the same.
(Condition 29)

7. Compliance audit,
The securities are not obtained in the name of A
Annual
Trust or DEMAT account has NOT been
opened in the name of the Trust for transacting
in securities. (Condition 18)

8. Online returns,
The establishment failed to file online monthly A
Monthly
returns for consecutive 03 months

9. Online ranking,
The establishment failed to score a minimum A
Monthly
of 300 marks out of 600 for consecutive 03
months.
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

10 Compliance Audit,
The Board of Trustees failed to file not follow A
Annual
the investment pattern as per the directions of
the government from time to time for three
consecutive years.

11 Compliance Audit,
The employer failed to file bear all the A
Annual
expenses of the administration of the Provident
Fund and also did not make good the loss
caused to the Provident Fund due to theft,
burglary, defalcation, misappropriation or any
other reason.

12 Compliance Audit,
Board of Trustees is not established by A
Annual
employer or is not in accordance with as per
the existing guidelines.

13 Compliance Audit,
The employer has not made good the A
Annual
deficiency in the interest declared by the Board
of Trustees to bring it up to the statutory limit.
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

14 Compliance Audit,
The rate of contribution payable, the A
Annual
conditions and quantum of advances and
other matters is lower than those declared by
the Central Government.

15 Compliance Audit,
The Trust rules have not been amended as per B
Annual
the amendment in the Scheme which is more
beneficial to the employees.

16 Compliance Audit,
The Trues Rules have been amended without A
Annual
prior approval of the Jurisdictional RPFC.

17 Compliance Audit,
All claims for withdrawals, advance and A
Annual
transfer are not settled within the maximum
time frame as prescribed by the EPFO.
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

18 Compliance Audit,
The exempted establishment failed to intimate A
Annual
the Jurisdictional RPFC regarding the
details of depository participants (approved by
the Reserve Bank of India and Central
Government), with whom and in whose safe
custody, the investments made in the name of
Trust, viz., Investments made in securities,
bonds, etc. have been lodged. Further, the
Board of Trustees kept high amount of money
for meeting obligatory expenses.

19 Responsibility of the
The Board of Trustees has failed to hold a B
BoT to send MoM to
meeting at least once in every three months.
RPFC every 3
months. , Quarterly
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

20 Compliance Audit,
Previous accumulation of the Employee is not B
Annual
transferred and credited to his account.

21 Compliance Audit,
The Board of Trustees failed to maintain the B
Annual
detailed accounts showing the contribution
credited withdrawal and interest in respect of
each employee.

22 Online returns,
The Board of Trustees and the employer B
Monthly/Annual
failed to file monthly/annually returns.

23 Default committed by any of the Compliance Audit,

B
Trustees/employer of any of the participating Annual
units.
24 ECR filing, monthly,
The employer f a il e d t o p a y inspection B
compliance action to
charges as prescribed by the Central
be taken by the
Government from time to time within 15 days
jurisdictional RPFC.
from the close of every month.
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

25 Compliance Audit,
The employer or the Board of Trustees have B
Annual
not submitted written undertaking to abide by
the conditions of grant of exemption.

26 Compliance Audit,
All such investments made, like purchase of B
Annual
securities and bonds, is not lodged in the safe
custody of depository participants.

27 Compliance Audit,
The Trust has not credited the commission, B
Annual
incentive, bonus, or other pecuniary rewards to
the account of BOT.
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

28 Compliance Audit,
The employer and the members of the Board of B
Annual
Trustees, at the time of grant of exemption, has
not furnished a written undertaking to the
RPFC in such format as may be prescribed
from time to time, inter alia, agreeing to abide
by the conditions which are specified and this
shall be legally binding on the employer and
Board of Trustees, including their successors
and assignees, or such conditions as may be
specified latter for continuation of exemption.

29 Compliance Audit,
The employer did not display the copy of the C
Annual
approved Trust rules on the notice board of the
establishment along with a translation in the
language of the majority of employees.
Sl. Category Category Category Source Document
Conditions
No. A B C and Frequency

30 Compliance Audit,
The Board of Trustees did not issue annual C
Annual
statement of accounts or passbooks to every
employee within six months of the close of
financial/accounting year free of cost once in
the year.

31 Compliance Audit,
The employer did not make necessary C
Annual
provisions to enable all the members to be able
to see their account balance from the computer
terminals.
FORM C.E - 7

Consolidated report in respect of cancellations by Regional Office to Zonal

Office by 5th of every month:

Number of Number of proposals Number of Closing Balance

proposals in forwarded to Zonal Proposals remanded (A-B+C)
Pipeline (Opening Office during the back by Zonal office
Balance) (A) month (B) (C)
FORM CE - 8
Consolidated report in respect of cancellations by Zonal Office to Head Office by 10th of
every month:

Number of Number of Number of Closing

proposals in proposals Proposals Balance
Pipeline (Opening forwarded to remanded back by (A-B+C)#
Balance) (A) Head Office Head office (C)
during the
month (B)
FORM CE - 9
Notice of Withdrawal of Exemption
(Under Condition no. 25; of Appendix “A” of Para 27AA of the Scheme)

Whereas M/s. ______ bearing code no. _______ was notified under Section
17(1)/17(2) of the EPF & MP Act, 1952/ vide notification no. _______ dated _________.
Whereas from a perusal of the Annual Report of the establishment for the financial
year ____ to _____ it is evident that the establishment has suffered losses for 3
consecutive years/suffered an erosion in its capital base.
Whereas the Condition no.25 of the Conditions of Exemption (Appendix “A” of Para
27AA of the EPF Scheme, 1952) reads as follows
“A company reporting loss for three consecutive financial years or erosion in their
capital base shall have their exemption withdrawn from the first day of the
next/succeeding financial year”.
In view of the aforementioned clause, it is proposed to withdraw the exemption
granted to your establishment w.e.f. 01/04. ____ . It is to be noted that subsequent to the
withdrawal of exemption the provisions delineated in Para 28 of the Scheme shall become
applicable to your establishment. Consequently, any delay in transferring the Past
Accumulations of your employees to the Fund under EPFO beyond the permissible time
limit shall have its legal consequences delineated under Section 7A, Section 7Q, Section 8,
Section 14B and Section 14(2A) of the Act without any further notice.

( )
Name of the RPFC-I
To:
1. The Employer
2. The Board of Trustees
FORM CE - 10
Notice of Revocation of Exemption
(Under Condition no. 29; of Appendix “A” of Para 27AA of the Scheme)
Whereas M/s. ______ bearing code no. _______ was notified as an exempted
establishment under Section 17(1)/17(2) of the EPF & MP Act, 1952 vide notification no.
_______ dated _________.
Whereas information was laid before me that the legal status of your establishment
has changed subsequent to
Sl.no. Issue/*Details Yes/No
1. A Merger/Demerger
2. An Acquisition
3. A Sale
4. An Amalgamation
5. Formation of a Subsidiary whether wholly
owned or not
*Details:
Whereas your attention is drawn to the Condition no.29 of the Conditions of
Exemption (Appendix “A” of Para 27AA of the EPF Scheme, 1952) which reads as follows
“In case of any change of legal status of the establishment, which has been granted
exemption, as a result of merger, demerger, acquisition, sale amalgamation, formation of
a subsidiary, whether wholly owned or not, etc., the exemption granted shall stand
revoked and the establishment should promptly report the matter to the RPFC concerned
for grant of fresh exemption”.
Now, therefore, it is informed that the aforementioned exemption granted to
M/s.___ stands revoked with effect from the (date of this notice). In view of this, you are
directed to apply for a fresh exemption or start complying as an Un-exempted
establishment. In case you choose to comply as an un-exempted establishment, you shall be
required to comply with the provisions of Section 17(5) of the Act read with Para 28 of the
EPF Scheme, as regards transfer of Past Accumulations of your Employees to the Fund
under EPFO. It may further be noted that failure to observe compliance with the afore
mentioned statutory provisions may entail legal consequences delineated under Section 7A,
Section 7Q, Section 8, Section 14B and Section 14(2A) of the Act without any further notice.
( )
Name of the RPFC-I
To:
1. The Employer
2. The Board of Trustees
FORM CE - 11
Notice to the Depository Participants of the Exempted Trusts
(Under Condition no. 19, of Appendix “A” of Para 27AA of the Scheme)
Whereas M/s. ______ bearing code no. _______ was notified under Section
17(1)/17(2) of the EPF & MP Act, 1952/ 1952 vide notification no. _______ dated
_________.
Whereas information has been laid before me that M/s._______ is the depository
participant of the Exempted Establishment and its Trust namely_________.
Whereas information has been laid before me that the establishment is
Sl.no. Issue/*Details Yes/No
1. Closed w.e.f. _______
2. Referred to NCLT w.e.f. _____ under IBC
provisions
3. Under Liquidation w.e.f. ______
4. Cancellation

*Details
Now, therefore, in terms of the Condition no. 19 of Appendix- “A” of Para 27AA you
are hereby called upon to transfer the investments lying with you in the name of _____ to
CBT, EPFO immediately. The said Condition No. 19 is as follows
“All such investments made, like the purchase of securities and bonds should be
lodged in the safe custody of depository participants, approved by Reserve Bank of India
and Central Government, who shall be the custodian of the same. On closure of the
establishment or liquidation or cancellation of exemption from EPF Scheme,1952, such
custodian shall transfer the investment obtained in the name of the trust and standing in
its credit to the RPFC concerned directly on receipt of request from the RPFC concerned to
that effect”
For securities transferred, the details of the securities may be furnished in the following
format:
Sl. Name and Description/ Face Value/ Price Date of
No. Code No. of Name of at which they Transfer
the Security were purchased
Establishment as per Para 28(2)
 of Scheme

Name of the RPFC-I

To:
1. The Employer
2. The Board of Trustees
8.4 Forms used in SOP for Surrender of Exemption
Sl. No FORM Description
Application format for Surrender of exemption along
1. FORM SE-1 with list of documents to be submitted by the
establishment.
Checklist and documents to be added/verified and
2. FORM SE-2
draft agenda by Regional Office
3. FORM SE-3 Format to be forwarded by the Zonal Office
Format for Head Office for sending to the Appropriate
4. FORM SE-4
Government
Order passed by RPFC to comply as an un-exempted
5. FORM SE-5
establishment
Past accumulation statement to be submitted by the
6. FORM SE-6
exempted establishment.
Memorandum for transfer of Special Deposit Scheme
7. FORM SE-7
Funds
FORM SE-1
Application for Surrender of Exemption
(To be submitted in Duplicate)

To,
The Appropriate Government
(Through The Secretary, Labour)
Government of…………………
_______________________________
(To be submitted only through Jurisdictional RPFC)

Subject: Surrender of exemption in respect of M/s_____________

Code no. __________- regarding.

Madam/Sir,
This is to say that our Board of Trustees have resolved to surrender the exemption
granted to the establishment (Name and code number).
We are making a voluntary application for surrender of our exemption as per
following details:
i. Name of the applicant :
Establishment
ii. P.F. Code No. :
iii. Address of the :
establishment
iv. a) Name of the PF Trust :
b) Single PF Trust or :
Common
PF Trust?
c) If common PF Trust, :
Details (Name, Code
No., etc. of the Principal
Establishment
Holding the PF Trust)?
v. Address of the PF Trust :
vi. Kind of Exemption :
(Under Section
17(1)(a)/Para 27A)
vii. Date of Grant of Exemption :
viii. Notification No. and Date :
ix. Appropriate Govt. :
x. Case of cancellation : YES
through surrender of
Exemption?
xi. Copy of resolution of the :
Board of Trustees
xii. Intended Date as :
per BoT’s resolution
to comply as an un-
exempted
establishment with
EPFO.
xiii Total number of accounts :
as on the date of surrender
xiv Total number of :
subscribers as on the date
of surrender
xv Total corpus as on date of :
surrender
xvi Whether assets are over the :
liabilities
xvii Whether all the documents :
enclosed
xviii Period up to which the :
dues have been remitted
(mention last month for
which contributions
deducted and remitted).
xix Period up to which the :
member accounts have
been updated with
 interest. (Mention FY
year).
xx Whether Notice has been :
displayed/Public Notice
issued for establishment's
intention to surrender
exemption (Please enclose
a copy of the Notice)
xxii Whether the :
establishment has been
filing Returns on time.
(Mention the last month
for which contributions
deducted and remitted).
xxiii Whether the :
establishment is
complying or Closed on
the date of
application/cancellation.
xxiv Whether Unclaimed :
Deposit Accounts (UCD)
have been included while
transferring the member
balance.
xxv Member grievances :
pending on the date of
application / cancellation.
xxvi Whether the Trust has :
forwarded the details of all
types of members –
contributory / non-
contributory in their state
of past accumulations
xxvii Whether the entire corpus :
as on the date of surrender
has been
transferred
Xxviii Date from which the :
establishments has started
compliance as an un-
exempted establishment
Xxx Details of any due amount :
of PF payable by the
employer/Trust such as
surcharges/damages/inspe
ction charges/any
fine/arrears
outstanding due to any
case pending before the
court of law
Xxxi Grounds of surrender :
(Inability to maintain
Trust/ Confidence in
Governance of EPFO etc.)
Xxxii Categorization of :
investment as per pattern
of investment
Xxxiii Whether the Trust has :
transferred all the past
accumulations as per the
Para 28 of the EPF
Scheme along with the
past Accumulation
Statement
Xxxiv Details of any loss to the :
Trust as
 a result of any fraud,
defalcation, wrong
investment decisions,
which has been made good
by the employer.
Xxxv The rate of interest paid :
by the Trust over last 5
years and comparison
with the statutory rate
Xxxvi Copies of amendments to :
the rules during period of
exemption if any

It is requested to kindly consider the surrender of exemption with effect from ______
and to consider issuance of a formal notification in this regard.

I/We .......do hereby undertake that the information given above is true and correct to the
best of my/our knowledge and belief and nothing has been concealed. We also undertake
all responsibilities about the correctness of the PA statement containing credentials of the
members and their last balances.

Yours truly

(Employer)

Countersigned by

Chairperson Trustees

Note: In special circumstances, as mentioned in the Standard Operating Procedure, the

Trustees can also file the surrender proposal/application.
 List of documents to be submitted along with the surrender application:

1. A request letter seeking approval to comply as an un-exempted establishment from the

effective date and to transfer provident fund accumulations from the PF Trust maintained by
the Establishment to the EPFO.
2. An application addressed to appropriate Government requesting for surrender of exemption
through the Jurisdictional RPFC.
3. An undertaking signed by the Employer stating that the Employer will recoup any loss against
the liability gap incurred by the Trust, in the process of migration.
4. Certified copy of the Board Resolution from the Company/Establishment, where such board
exists.
5. Certified copy of the Board resolution from the Board of Trustees of the EPF Trust
indicating the date of surrender of exemption.
6. Compliance audit observations along with replies received from the employer for last three
years.
7. A self-certified documents with respect to pending Compliance Audit year, if any, in the form
prescribed for the compliance audit as amended from time to time.
8. Details of the corpus with duly audited balance sheet(s) of the Trust in respect of the principal
establishment as well as participating units along with the details of the securities held under
major investment categories.
9. Advance intimation about any closure/merger/demerger/liquidation/acquisition etc. – The
establishment as well as the Trustees should initiate the process of surrender of exemption in
advance in the events of any change in the legal status of the establishment/closure/going for
liquidation by the Court of Law, duly incorporating the supporting documents.
10. The details of the on-going court cases related to EPF exemption matters, if any, along with
copy of interim orders, if any. If there is no such case, the NIL report may be submitted.
11. In case of those establishments, which have been granted exemption/relaxation status due to
any final/interim order passed by the Court of Law, an express order from such courts may be
submitted by the establishment in respect of surrender of their exemption. However, RPFCs
may take further decision in respect of such instances on the case-to-case basis.
12. List of Directors with address details and contact numbers including email-id.
13. Consent of Employees.
14. Undertaking from the establishments to make good any losses incurred to the Trust.
15. Complete intimation with Breakup of corpus fund as on (date of surrender)
16. Past accumulation statement including data-wise transfer of funds of employees including
inoperative accounts as on date of surrender.
17. Break up of securities (head-wise) as on .
18. Copy of the Original Exemption Notification of the Establishment.
(Note:
a. Where original notification for grant of exemption is not available either at the
Regional Office or at the exempted establishment/Trust, a copy of such notification
may be provided.
b. Where the copy of the original notification is also not available, the order number
about the grant of exemption may be provided, after exhausting reasonable
attempts to obtain the copy of the order from the appropriate government/Gazette
Press.
c. Where the exemption order is also not available at the offices of the appropriate
Government, /Government Press, Jurisdictional RPFC shall withdraw the
relaxation granted earlier and facilitate the transfer of funds.)
19. Balance sheet for the last 3 years of PF Trust.
20. Balance sheet for the last 3 years of the Establishment along with Audit reports.
21. Documents related to closure/liquidation/change of legal identity.
FORM SE-2
Checklist and documents to be added/verified at RO
i. Name of the Establishment :
ii. Code No. :
iii. Date to comply as an un-exempted :
establishment
iv. Total number of accounts as on the date of :
surrender
v. Total number of active accounts of :
subscribers as on the date of surrender
vi. Total corpus as on date of surrender :
vii. Whether assets are over the liabilities (Yes :
or No)
viii. Whether all the documents enclosed as :
per FORM S.E.1.
ix. Details of any due amount of PF payable :
and pending by the employer/Trust such
as surcharges/damages/inspection
charges/any fine/7A/14B/arrears
outstanding due to any case pending
before the court of law
x. Categorization of investment as per :
pattern of investment
xi. Whether the Trust has transferred al the :
past accumulations as per the Para 28 of
the EPF Scheme along with the past
Accumulation Statement
xii. Details of any loss including those :
reported in the last three compliance audit
reports to the Trust as a result of any
fraud, defalcation, wrong investment
decisions, which has been made good by
 the employer.

xiii. Whether the information about the :

investments as given in the last three year
balance sheet has been matched with the
monthly/annual return filed by the
Trust/establishments

Recommendation: The surrender proposal as per the FORM S.E.1. received from the
establishment has been thoroughly scrutinized and it is recommended that the proposal may be
considered for placement before the appropriate Government for decision making through the CBT.
 Draft Agenda for Surrender of Exemption

Surrender of Exemption is a special case of cancellation of exemption granted to an establishment.

The process of surrender is as per guidelines prescribed by the 215th Central Board. In effect, it is a
voluntary request for cancellation reflecting an increasing confidence in EPFO’s public governance.
Surrender of Exemption is effectively a voluntary request for cancellation.

2. Basic Details of the Establishment

Name of the Establishment

Code No
Name of the Trust
Date of Exemption
Exemption Notification details
Private/Public/Cooperative
establishment
Working/Closed establishment
Reported Corpus
Number of reported EPF members
Date from which the surrender
sought
Third-Party Audit conducted up to
Compliance Audit Completed up to
Rate of interest for last three years
(This is at Par with EPFO declared
rates)
Appropriate Government
Statutory Provisions empowering
cancellation
Jurisdictional RPFC
Zonal Office
3. Brief Introduction:
M/s _________________ (Code Number__) has applied for surrender of Trust
on __application date__ citing the reason of (as indicated in BOT resolution or cover letter). It has
started complying as an un-exempted establishment w.e.f. __date of starting un-exempted
compliance.
4. Details:
a. The establishment has requested the Appropriate Government i.e., Government
of ____________ vide letter dated ________ to surrender exemption. The Board of
Trustees has passed a resolution dated __resolution date _____________ to surrender
exemption w.e.f. ________.

b. Total Corpus and the membership: Based on third party audit report- The jurisdictional
RPFC has shared that the total employee strength at the time of surrender of Exemption
was ______ (include both left and presently working employees) ____ and Total corpus of
the establishments’ trust was Rs. ____________/- (Rupees _ in _ words _ Only).

c. The establishment was granted exemption under Section/Para ______ vide Notification No.
______ dated ____ w.e.f. ____ by Government of _____.

d. Compliance status/financial health:

i. Jurisdictional RPFC has stated that the no liability is likely to arise on EPFO on cancellation
of Exemption.
ii. Jurisdictional RPFC also informed that Surcharges, Damages & Interest have been levied up
to ______________ and applicable the levied dues collected.
iii. Jurisdictional RPFC has certified that the status of the establishment has been changed in the
system as an un-exempted establishment with effect from ___________.
iv. Compliance audit has been conducted up to the year ______

5. Court case / Liquidation matter, if any.

…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………
6. Past accumulation details:
 a. The third party vide report dated ________ has indicated Past Accumulation of Rs.
_____________/-.

b. The establishment has transferred Past accumulation of sum of Rs. _____________/-

(Rupees _ in words__ Only) for ____ members as on _______.

c. The Past accumulation statement and the Balance sheet.

d. The details of the cash part of the transaction is as below:

Nature of Mode of Amount in Rupees Supporting document

Transfer Transfer e.g. TRRN/Bank
statement etc.
Cash
SDS

e. For securities transferred, the details of the securities are detailed as below:

Sl. No. Name and Description/ Face Value/ Price Date of

Code No. of Name of at which they Transfer
the Security were purchased
Establishment as per para 28(2)
of Scheme

7. Supporting Documents:
a. Draft notification for cancellation (Annexure - J)

b. Information as per Draft Template of MOLE for Surrender/Cancellation of exemption

granted under Para 27A/Section 17(1)(a) of the EPF & MP Act, 1952. (Annexure - L)

8. Justification about non availability of any prescribed document.

Proposal: The proposal for Surrender of exemption granted in respect of M/s

___________________ bearing code No. _____________ Under __section 17(1)(A)/para
27A____ Notification No. ___________ dated ________, is placed before the Committee for
Exempted Establishments for consideration in accordance to CBT guidelines. The proposal, if
allowed shall be further placed before the Central Board of Trustees, for consideration.
List of documents to be added by the RPFC.

1. Copy of the relaxation withdrawal order if any.

2. Report of Jurisdictional RPFC regarding financial health and up to date compliance status of
the Establishment as per formats below:

(Regarding un-exempted compliance)

This is to certify that the establishment M/s._____________________ (code number
____________) has begun compliance as an un-exempted establishment w.e.f. ____________
for ____________members. The last contributions received are for the wage month of _____ for
______ members.
(Where violation on conditions of exemption were detected but the establishment
comes for surrender)
On the basis of compliance audit reports of preceding 3 years from the date of surrender, this
is to certify that the establishments M/s.__________________________________ (code
number _________) has been reported to have violated condition no.________________ of
grant of exemption. However, the said exempted establishment has submitted application for
surrender with effect from ________________ and has remitted the entire corpus to match the
past accumulation statement, which has been verified by the Third-Party Audit and/or the
Enforcement Officer.

(Regarding up-to-date compliance status)

On the basis of the online ECR reports, this is to certify that the establishment
M/s.______________________ (code number _________) has started un-exempted
compliance w.e.f._________ and post-surrender, their monthly EPF compliance is received up to
______________.
Further, the entire past accumulation liability has been deposited by the said exempted Trust
and their pension fund contributions as well as Administrative Charges contribution is received up
to _________. Further, all the losses incurred by the Trust, if any, have been liquidated by the
establishment.
 This certificate is issued without prejudice to any 7A (for evasion of membership) or 14B
proceedings for levy of damages/FIR/Prosecution instituted against the establishment as well as
any hidden losses not detected by compliance Audit/Third Party Auditors as such proceedings can
continue even after surrender of the exemption.

(Regarding Financial Health of the Establishment)

This is to certify that the financial health of the establishment M/s._____ bearing code
no.______ is healthy and no liability is likely to arise on EPFO as a consequence of
Cancellation of Exemption.

3. Copy of third-party audit report along with third party auditor certificate as per below
format:

Prescribed Certificate from Third Party Auditor

On the basis of Third Party Audit conducted into the books of accounts of the _______- Trust,
which was formed due to exemption granted to establishment, M/s.______ (Code
no.___________), vide notification Number _____dated ____ this is to certify that the financial
health of the Trust is sound and is sufficient to balance the liability arising out of the subscribers,
members and accounts maintained by the said Trust and no liability will occur to EPFO on account
to the intended surrender of the corpus of the Trust.
()
Chartered Accountant
Office__________
Date_______________
(Note: Where the third-party audit can’t be completed, e.g., closed establishment
/establishments under liquidation /establishment/ Trust under seizure by any other law-
enforcing authority, the Jurisdictional RPFC shall proceed with the Surrender without it,
subject to the condition that the reconciliation of funds shall be required at the time of
transfer of past accumulations/corpus.

4. Legal opinion, wherever applicable/necessary.

 5. Details of deviations of investment along with the status of recovery of surcharge, if any.
6. Order by the appropriate government/any other law-enforcing agencies/Court of law, if any.
In case of any difficulty arising in the completion of documentary evidence in respect of any
exempted establishment, the proposal for Surrender should be forwarded by the Zonal office along
with the recommendations of the Zonal ACC explaining the difficulties.

(Jurisdictional RPFC)

Office

Dated________
 Annexure – J (Standard Template)

APPENDIX
NOTIFICATION

Whereas M/s. _________________ bearing code No. ___________ in

_______________ Region has applied for surrender of exemption granted by
the ______ Government under clause (a) of sub-section (1) of section 17 of the Employees Provident
Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) (hereinafter referred to as the Act) / para
27A of the EPF Scheme,1952 (hereinafter referred to as the Scheme) (as applicable).

2 Whereas a notification bearing No. G.O. __________ dated ________ granting

exemption to the said establishment under clause (a) of sub-section (1) of section 17 of the said Act /
para 27A of the said Scheme w.e.f. ___________.

3 And whereas now it has come to the notice to the ______ Government that the establishment has
desired to surrender its exemption w.e.f. ________as (mention the reason mentioned in trust
resolution).

4 Now, therefore, in exercise of the powers conferred by sub-section (4) of section 17 of the said Act,
the state Government hereby cancels the exemption granted to the said establishment with effect
from _________.

(_____________)
Secretary to the Government
 Annexure – L
Draft Template for Surrender of Exemption

Sl. Subject Status Remarks

No.
1. Name & code of the establishment
2. Date of Grant of exemption to the establishment
and under which section/Para the exemption was
granted
(i)Whether under Section 17 of the EPF & MP Act,
1952; or
(ii)Whether under Para 27 of EPF Scheme, 1952
3. Date on which the establishment has started as an
un-exempted establishment.
4. Date of application of Surrender/Cancellation of
exemption by the establishment.
5. Date from which Surrender/Cancellation of
exemption has been sought?
(a)Grounds for Surrender/Cancellation of
exemption.
6. Whether the establishment followed all the
conditions of exemption as specified in Para 27AA
of the EPF Scheme, 1952 and pattern of investment
as notified from time to time,
(i)If no, details thereof (Clearly mention the
condition/violation)
(ii)Action taken against such violations.
(iii)Whether, certificate in this regard has been
submitted by the concerned competent authority
(also enclose a copy) and details thereof.
Sl. Subject Status Remarks
No.
7. Categorization of investment as per pattern of
investment (during the period of exemption)
(i)Government Securities and Related Investments
(ii)Debt Instruments and Related Investments.
(iii)Short-term Debt Instruments and Related
Investments
(iv)Equities and Related Investments
(v)Asset Backed, Trust Structured and
Miscellaneous Investments.
8. Whether the establishment has transferred all the
past accumulations as per Para 28 of the EPF
Scheme, 1952 along with Past accumulations
statement and compliance as an un-exempted
establishment,
(a)If yes, details thereof (Category wise, Amount
and date)
(i) Government Securities and Related Investments
(ii) Debt instruments and Related Investments
(iii)Short-term Debt Instruments and Related
Investments
(iv) Equities and Related Investments
(v) Asset Backed, Trust Structured and
Miscellaneous Investments
(b) If Not, details thereof and reason therefor.
9 Whether the annual statement of accounts or pass
books issued to every employee within six months
of the close of financial or accounting year free of
cost once in the year.
Sl. Subject Status Remarks
No.
10. The amount of interest paid by the establishment to
its employees on the PF accumulations during the
last three years:
(i)First year
(ii)Second year
(iii)Third year
11. (i)Whether the rate of interest paid during the last
three years was less than the interest decided by
EPFO.
(ii) If yes, the reason thereof.
12. (i) Whether there is amendment to the rules of the
establishment during the period of such exemption?
(ii)If yes, whether prior approval of the RPFC was
obtained?
13. Whether the establishment is regular in filing
various monthly and annual returns prescribed by
EPFO?
14. Whether there is any change of legal status of the
establishment after grant of relaxation?
15. Whether the establishment is regular in submission
of Audited Balance Sheet along with the Auditor’s
report
FORM SE-3

(To be forwarded by the concerned Zonal Office)

Item No. _: Surrender/Cancellation of Exemption under Section 17(1)(a) of the EPF &
MP Act, 1952/Para 27A of the EPF Scheme, 1952 in respect of __ code No. __.

Name of the Establishment

Code No.
Regional Office
Zonal Office
Number of reported EPF members
Reported Corpus
Date from which the surrender
sought
Appropriate Government
Statutory Provisions

2. M/s. __ bearing code no. __ was granted exemption under section 17(1)(a) of the EPF & MP Act,
1952/Para 27A of the EPF Scheme, 1952 vide notification no. __. The said establishment has
provident fund Trust in the name of “__”.

3. The following requirements for Surrender of exemption have been fulfilled by the exempted
establishment:

a. Grounds for surrender of exemption.

b. Details of establishment’s application and resolution of board of Trustees.

4. Essential Requirements for surrender of exemption have been verified and are found to be in
order. The same are detailed below:
a. Details of compliance of the establishment as un-exempted.

b. Jurisdictional RPFC Certificate of no liability.

c. Date and details of complete past accumulations transferred.

5.
a. Grounds for surrender of exemption.

b. Jurisdictional RFPC Certificate of initiating legal action for violation of conditions by the
establishment/Trust noticed.

6. The complete proposal along with the supporting documents in FORM S.E.1 and FORM S.E.2 has
been examined in the light of statutory provisions, and found to be a fit case to be placed before
the Committee on Exempted Establishments for consideration of cancellation/surrender of
previously granted exemption and the same is being forwarded to Head Office.
Agenda: The proposal for surrender/cancellation of exemption granted u/s 17(1)(a) of the EPF & MP
Act, 1952/Para 27A of the EPF Scheme, 1952 in respect of M/s. __ bearing code No. __, by
Government of __ vide Notification No. __ dated __ is placed before the Committee for Exempted
Establishments for considering their recommendations. The proposal, if recommended shall be
further placed before the Central Board of Trustees, for consideration.

(ACC/ACC(HQ)

Zone

Dated
 FORM SE-4

Format for Head Office for sending to appropriate Government

To,
The Appropriate Government

Subject: Surrender of exemption in respect of M/s. __ bearing code no. __ - regarding

Sir/Madam,

M/s. __ bearing code No. __ is an establishment granted exemption under Section 17(1)(a) of
the EPF & MP Act, 1952/Para 27A of the EPF Scheme, 1952 from the operations of the Employee’s
Provident Fund Scheme, 1952 by Government of __ vide Notification No. __ dated __.
2. The establishment vide its letter dated __ has requested to surrender the exemption granted to
it stating that __. Accordingly, the Trust has passed the resolution to surrender the exemption w.e.f.
__. The Jurisdictional RPFC, __ vide their letter dated __ has reported that the establishment has
started complying as an un-exempted establishment w.e.f. __ and the past accumulations has been
transferred by the establishment/Trust.
3. The application of the establishment for cancellation/surrender of exemption was placed
before the EEC, in their __ meeting held on __ and before the Central Board of Trustees, EPF in their
__ meeting held on __. Having considered the application, the Central Board of Trustees opined to
recommend the request of the establishment M/s. __ bearing code no. __ for cancellation/surrender
of exemption under Section 17(4) of the EPF & MP Act, 1952 to Appropriate Government which is the
Government of __ in this case.
4. In this context, please find enclosed the following documents for perusal and consideration of
issuance of necessary cancellation order in respect of the aforesaid establishment under Section 17(4)
of the EPF & MP Act, 1952 through a formal notification.
xiii. Application for cancellation/surrender of exemption by the establishment.
xiv. Copy of resolution of Board of Trustees.
xv. Copy of notification order granting exemption.
xvi. Specific recommendation of Zonal Office, __ vide their letter dated __.
xvii. Minutes of the __ EEC Meeting held on __.
xviii. Minutes of the __ CBT Meeting held on __.
Encl. – As above.
Yours faithfully,

( )
Divisional Head (Exemption)

For information and pursuing with the

Copy to: i) Zonal ACC __.
appropriate Government for issuing
ii) Jurisdictional RPFC__. notification.
iii) ACC (Compliance) Head Office: For information
FORM SE-5

(To be issued by the RPFC-I/OIC (Regional Office) as per paragraph 4(i) of the SOP on Surrender of
Exemption)

M/s.___________ was notified as an exempted establishment within the meaning of Section

2(fff) of the Act by the Government of___________(name) vide office order
no______dated_________.
The said establishment has applied to the Government of ___________ (name) to surrender their
exemption with effect from______ (date) consequent to a resolution of the Board of
Trustees_________ (name of the Trust) dated__________.
Considering the facts and circumstances of the application and the relevant documents submitted
before me, I ________ (name of RPFC-I) do hereby accord provisional sanction to the employer to
start complying as an un-exempted establishment with effect from _______(date) till further orders.
The said sanction is, however, subject to the completion of all the statutory requirements necessary
for the decision of the Govt. of ________ (name) on this application of surrender which shall be
conveyed to them in due course.
To,
1) The Employer
2) The Board of Trustees
FORM SE-6

Statement of Past Provident Fund Accumulation (As on ______)

M/s.________________ Establishment code: ______________

Sl. UAN Aad Account PF Name of Opening Contribution Interest Withdrawal/ Closing Grand Remarks
N har No./ account the Balance as from _____ from _____ Advance from Balance as Total
o. Employ No. with member as on (date) to (date) to _____ (date) on ______
ee Id ____ in Form _______ _______ (date) _______ to _______ (date)
(trust No. 9 (date) (date) (date)
name) (Revised)
EE ER EE ER EE ER EE ER EE ER

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18)

Name of the Trust Fund

Signature of the Chairman (BOT) Signature of Trustee Signature of Trustee

Signature of Trustee Signature of Trustee

Past Accumulation amount verified with members P.F. Ledger and found correct

(___________________________)
Signature of concerned Enforcement Officer with Date
FORM SE-7
REGISTERED A.D.
MEMORANDUM
From:
The Manager,
To
The Manager
State Bank of India
Securities Services Branch
IInd floor, Mumbai Main Branch,
Mumbai Samachar Marg,
Mumbai 40023
Special Deposit Scheme, 1975 -
Transfer of Account
We have been requested by the (Name of the Fund) Whose Special Deposit Account was maintained
with this office under the captioned Scheme to transfer the balances to the Special Deposit Scheme
Account of Central Board of Trustees (EPFO) maintained with your office.
2. Accordingly a duplicate copy of the application for transfer of balance together with the relative
pass book showing a balance of Rs. (in words) and a statement of account is enclosed. The account of
Central Board of the Trustees (EPFO) may be credited with the amount of Rs. (in words) and the pass
book duly certified may be returned to the transferor account holder at the following address by
Registered A/D Post.
3. Interest paid up to____________________
(Manager)

Copy forwarded for information to the

(Name and address of the Transferor Fund)
REFERENCES
1. The Employees’ Provident Funds Scheme, 1952; (Page;7)
2. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952; (page;7)
3. The EPF & MP Act, 1952 (section 17); (Page;8)
4. The Employees’ Deposit Linked Insurance Scheme, 1976; (Page;10)
5. The Employees’ Pension Scheme, 1995; (Page;11)
6. Standard Operating Procedure for Surrender of Exemption; (Page;12)
7. The Code on Social Security, 2020; (Page;12)
8. The EPF & MP Act, 1952 (section 17); (Page;12)
9. Minutes of 183rd Meeting of the Central Board of Trustees, EPF; (Page;13)
10. The EPF & MP Act, 1952 (section 17); (Page;15)
11. The Code on Social Security, 2020; (Page;16)
12. Exemption Division, Head Office e-mail dated 24.01.2023 to all the Zonal Offices for
forwarding the Draft Agenda/Template for Surrender/Cancellation of Exemption to
Head Office; (Page;19)
13. Standard Operating Procedure for Grant of Exemption; (Page; 21)
14. Standard Operating Procedure for Regulation and Management of Exempted
Establishments; (Page;30)
15. Standard Operating Procedure for Cancellation of Exemption; (Page;38)
16. Hon’ble Supreme Court of India observations on N.K. Jain and Others vs C.K. Shah
and Others on 26 March, 1991; (Page;45)
17. Hon’ble Patna High Court observations on Tata Iron & Steel Co. Ltd. vs Bir Singh and
Anr. on 16 November, 1979; (Page;45)
18. Standard Operating Procedure for Surrender of Exemption; (Page;50)
19. Minutes of 183rd Meeting of the Central Board of Trustees, EPF; (Page;63)
 List of circulars adapted/superseded in Exemption Manual
Sl. No. Heading Sub-heading Circular No. Dated Circular subject Para Chapter Para Adapted/ Justification Any Any
number of of number Superseded for reference of reference of
circular Manual of SOP modification Act (Section) scheme
(para)
1 SOP for Grant of Court Cases Co-ord./11(24)/05/Admn. 16-06-2005 Delta Ltd., & Anr. Vs RPFC & Anr Total 2 6 Adapted Section 17(4)
Exemption Inst./Cir./25000
2 Guidelines for EIII/18(7)2001/ 16-12-2003 Revised conditions for grant Total 6 Adapted Section Para 27AA
Grant of 17(1)(a)(d)
3 Exemption E.III/7(4)2001/KN/82042 05-02-2004 Guidelines for grant cases in light of Total 6 Adapted Para 27AA
Revised conditions
4 2006/C.II/Misc/Exem/05/EZ/005/9 01-02-2006 Proforma for undertakings and Total 6 Adapted Para 27AA
0786 signature of Trustees
5 C-IIMisc/2/06/x/EZ/46396 27-09-2006 Clause 56 of the Finance Bill 2006 Total 6 Adapted Section
1(3)1(4)&17
6 C-II/Misc/2/06/x/EZ/65314-65429 20-11-2006 CBT guidelines 176th meeting for Total 6 Adapted Section
processing cases in light of the I.T Act 1(3)1(4)&17
provision
7 C-II/Misc/2(06)/EX/EZ/88651 09-03-2007 Coverage and exemption of Excluded Total 6 Adapted Section 17
employees and Trusts,restoration of and 2( e)
relaxation powers & Chairman of BOT

8 C-II/Misc/2/(06)/EX/EZ/88782 09-03-2007 Introduction of 10 point checklist Total 6 Superseded Section Para 27AA
with grant applications 17(1)(a)
9 E- 09-03-2007 Chairman BOT Total 6 Adapted Section 2(e) Para 27AA
III/7/(7)/02/KN/Exemption/88947

10 C-II/Misc/2/06/EZ/EX/79520- 28-12-2007 Comprehensive guideline for Total 6 Adapted Section Para 27A
79690 Exemption &essential documentation 17(1)(a)

11 C- 29-07-2008 Checkpoints for grant applications Total 6 Adapted Section Para 27A
EX/32(59)/07/WB/EX/HWR/EZ/24 17(1)(a)
917
12 C-II/Misc/2/06,EZ/EX/7634 07-01-2009 Timelines for Exemption proposals Total 6 Superseded Section Para 27A
forwarding 17(1)(a)
13 C-II/Misc/02/06/Exem/Vol-I/5314 27-04-2009 Guidelines for grant cases in light of Total 6 Superseded Section 17 Para 79
I.T. Act & Treatment post Para 79

14 C-II/Misc/02/06/EZ/EX/18098 18-11-2011 Amendments in circular dated Total 6 Adapted Section Para 27A
28/12/2007 17(1)(a)
15 C-II/Misc/02/06/EX/EZ/Vol-i/9360 16-08-2013 Guidelines & Timelines for processing Total 6 Superseded Section Para 27A
cases in view of I.T. Act timeline 171I)(a)

16 C-II/Misc/2/06/EZ/EX/Vol-II/11901 05-08-2016 I.T recognition not necessary for Total 6 Adapted Section Para 27A
grant cases;amendment of circular 17(1)(a)
dated 28/12/2007
17 No.Exem.10(30)/209/7379 25-09-2019 16 points checklist Total 6 Adapted Section Para 27A
17(1)(a)
18 Old circulars, Sl. No. 2 on Particulars for grant of Total 6 Superseded
epfindia.gov.in relaxation/exemption proforma
19 Monitoring E- 28-06-2019 Monitoring by Z.O of Total 6 and 9 Adapted
III/10(101)2018/Monitoring/Exemp Grant/cancellation proposals
tion/3644
20 Relaxation C-II/MISC/02/06/EX/VOL-I/11854 24-07-2012 Withdrawal of power delegated to Total 5 and 6 Adapted Section 17 Para 79
RPFCS In-charge of Regional/Sub
Regional Offices to grant relaxation
under Para 79 of the Emplyees'
Provident Fund Scheme, 1952

21 Transfer of PF Invest.I/1(10)2000/42517 05-09-2003 Transfer of Provident Fund Total 12 Adapted Section 17 Para 27/27A
accumulations accumulations in shape of
Cash/Securities to exempted
establishments consequent upon
grant of exemption
22 Invest.I/1(10)2000/24131 26-07-2004 Transfer of Provident Fund Total 12 Adapted
accumulations 100% in cash to
exempted establishments consequent
upon grant of exemption -
clarification - regarding

23 C-Ex/Misc./Comp. Audit/2008/2473 21-06-2011 Transfer of funds to the PF trusts Total 12 Adapted Section 17
subsequent to grant of exemption u/s
17 - reg
24 SOP for Compliance Audit C-Ex/Misc/Comp.Audit 18.10.2010 Compliance Audit of exempted Total 3 5 and 6 Adapted
Management and 2009/425670 establishments
25 Regulation of C-Ex/Misc/Comp. Audit/2009/31241 10.11.2011 Proforma of Compliance Audit Total 5 and 6 Superseded The latest
EPF Exempted investment
Establishments pattern has
been
mentioned in
the Compliance
Audit proforma.

26 Exem/10(20)2016/Standing 26.07.2017 Conducting of Compliance Audit of All Total 5 and 6 Adapted

Committee/ Exempted Establishments till
7963 Financial Year 2016-17
27 C-Ex/Misc/Comp. Audit/2015/19761 05.12.2017 Conducting Compliance Audit every Total 6 Adapted
year
28 Investments HO/IMC/198/APFETF/2015/19966 31.12.2015 Accounting Policy and method of
accounting for equity and related
investment
29 Exem/10(16)2016/28265 01.02.2017 Gudielines for levy of surcharge Total 6 Adapted
30 Online Returns C-Misc./Ex. Return/2013/Vol- 21.09.2017 Parameters to evaluate performance Total 6 Adapted
III/13587 of exempted establishments in
respect of filing of online returns.
31 Exem/10(20)/2016/VOL.III/10735 29.09.2017 Zonal ACC to review the performance Total 6 Superseded
of online returns
32 Exem/10(20)/2016/Vol. III/14471 09.10.2017 Issuance of Show Cause Notice to Total 6 Adapted
establishments not filing online
returns.
33 C-Ex/Ex - Return/2014/19536 01.12.2017 Online filing of monthly returns by Total 6 Adapted
the Exempted Establishments and
specified timeline for the monthly
returns.
34 C-Misc./Ex - Return/2013/Vol-II/909- 09.04.2018 Parameters to evaluate performance Total 5 and 6 Adapted
910 of exempted establishments in
respect of filing of online returns.

35 E-III/10(101)2018/Monitoring/ 28.06.2019 Monitoring of and ensuring Filing of Total 5 and 6 Adapted

Exemption/3644 Online Returns by the Exempted
Establishments and the Annual
Compliance Audit of all the Exempted
Estabslishments/Trusts by Regional
Offices/Zonal Offices.
36 Third Party Audit E-III/Misc/14/Exem/Third Party 30.04.2014 Re-auditing of the accounts of Total 5 and 6 Adapted
Compliance Audit/ 2682 Provident Fund maintained by Board
of Trustees of Exempted and Relaxed
establishments by any other qualified
Auditor by RPFC

37 SOP for Guidelines for Coord/11(24)/5/Admin Inst/20 15.06.2005 Cancellation of exemption granted 1 4 NA Superseded Meaningless
Cancellation of Cancellation of under Section 17(1)(a) of the Act-W.P.
EPF Exemption Exemption No. 1874 of of 2004- Delta Ltd., & Anr.
Vs RPFC & Anr
2 5.b).iii Superseded Intrepretation
of High Court
order to
identify action
of clarifying
that RC-1 can
issue
preliminary
SCN for
cancellation.
However the
same was
reverted
3 NA Superseded Meaningless
4 1(v),9 Adapted NA section 17(4) ,
2(a)
5 NA Superseded No substantaive
point
38 C- 26.12.2008 Violation of the revised conditions for 1 7(xii) Adapted SECTION 27AA
II/Misc./02/06/Exem./EZ/Vol.I/698 grant of exemption - Compulsory 17(1A),17(3),
74 follow up action required. 17(4)
2 7(xii) Adapted SECTION 27AA
17(1A),17(3),
17(4)
3 7(xii) Adapted SECTION 27AA
17(1A),17(3),
17(4)
4 7(xii) Adapted SECTION 27AA
17(1A),17(3),
17(4)
5 7(xii) Adapted SECTION 27AA
17(1A),17(3),
17(4)
6 7(xii) Adapted SECTION 27AA
17(1A),17(3),
17(4)
39 Exem. /6(20)08/DL/NZ/Vol.I/30327- 30.07.2009 Procedure for the cancellation of 1 7(A)(xii) Adapted
477 exemption 2(i) 7(A)(xii) Adapted

2(iI) 7(A)(xii) Adapted

2(iii) 7(A)(xii) Adapted

3(i) 7(A)(xii) Adapted

3(ii) 7(A)(xii) Adapted

4 NA Superseded Refernce of
previous
circular, No
substantaive
point
40 32(6)13/Cancellation Order/39344 23.02.2015 Procedure for Cancellation of 1 NA Superseded No substantaive 17(1)(a) ,
Exemption – regarding point 17(2) , 17(4)

2 NA Superseded Reference to
previous
circular
3 8(iv) Superseded without third 17(4) 25
party under
exceptional
circumstances
4 8(iv) Superseded without third 25
party under
exceptional
circumstances
 5 8(iv) Superseded without third 25
party under
exceptional
circumstances
6 8(iv) Superseded without third 25
party under
exceptional
circumstances
41 Exem/10(20) /2016/Vo.III/144 09.10.2017 Procedure to issue show cause notice 1 5.b).iii Adapted 17(4)
to the EPF establishments and their 2 7(A) Adapted 17(4)
Trusts - regarding (iv),14(g)

42 Past Accumulation C-Ex/E- 01.02.2010 Cancellation of exemption - Transfer 1 7(C)(v to Adapted 17(5),14(2A) 28
Transfer III/16(45)99/WB/CE/EZ/82943- of past accumulations - Regarding. 2 7(C)(v to Adapted 17(5),14(2A) 28, Condition
83172 vii) 19 of
Appendix-A to
Para-27AA

3 7(C)(v to Adapted 17(5),14(2A) 28, Condition

vii) 19 of
Appendix-A to
Para-27AA

43 C- 12.09.2016 Transfer of PA on cancellation of 1 7(C) (v to Adapted 17(5) 28

II/Misc./02/06/Ex/EZ/Vol.I/15146 Exemption 2 7(C) (v to Adapted
vii)
3 7(C) (v to Adapted
vii)
44 Third Party Audit E-III/Misc./14/Exem/Third Party 30.04.2014 Re-Auditing of the accounts of All 7(A)(viii) Adapted Format of third 24(a) of 27AA
/2862Compliance Audit Provident Fund maintained by Board (f) party audit
of Trustees of Exempted and Relaxed
establishments by any other qualified -
- Auditor by RPFC

45 Verification of C- 05.09.2016 Verification of closed 1 8(ii),(iii) Adapted 17(5) Condition 19

closed/relaxed Ex/32(1)/15/BR/SRO/MUZ/CE/EZ/ exempted/Relaxed establishments of Appendix-A
establishments 10249 to Para-27AA

2 8(ii),(iii) Adapted 17(5) Condition 19

of Appendix-A
to Para-27AA

3 8(ii),(iii) Adapted 17(5) Condition 19

of Appendix-A
to Para-27AA
46 Exem/10(18)/2016/Closed 21.12.2016 Verification of closed 1 8(ii),(iii) Adapted 17(5) 28, Condition
Estt/16264 exempted/Relaxed establishments 19 of
Appendix-A to
Para-27AA
2 8(ii),(iii) Adapted 17(5) 28, Condition
19 of
Appendix-A to
Para-27AA
3 8(ii),(iii) Adapted
4 8(ii),(iii) Adapted
47 SOP for Guidelines for C-Ex/32(6)13/cancellation 30.07.2014 Guidelines for processing the cases of Total 5 6B Superseded pending 17(4)
Surrender of EPF Surrender of order/24832 surrender of EPF exemption - (xxxiv compliance
Exemption Exemption regarding and xxxv) action

48 E-III/10(45)2022/Misc/4578 22.03.2019 Intimation regarding initiation of 2 FORM Superseded Points in table 17(5) 28
surrender of exemption process S.E.1 added in
checklist
49 Transfer of Past C-II/Misc./02/06/Ex/Ez/Vol.I/10240 13.03.2023 Transfer of P.A on relaxation NA 17(5) 28
Accumulations withdrawal and surrender

50 Invest-I/(Custodian)- 18.07.2017 Transfer of Govt Securities upon 2 6(b)(xv) Adapted 17(5) 28

SCB/2011/Vol.II/19193 exemption cancellation
51 File No: 13.03.2023 Transfer of Past Accumulations - Total 6B Adapted 17(5) 28
WSU/2022/206/Exemption/17044 Receipt of SOS/Permissible Securities -
regarding.
52 No. Bkg. l (2)2006 NFMS Vol. V / 148 18.07.2017 Collection in Single Collection A/c Total 6B Adapted 17(5) 28
35896921895- for offline collection
with SBI- Releasing of VDR
Functionality by NDC - Reg
53 No. Bkg. l (2)2006 NFMS Vol. V / 159 03.08.2017 Deposit of DR cheques in Single Total 6B Adapted 17(5) 28
Collection Account (35896921895)
and discontinuing deposit in the field
office accounts under the old system -
Reg.