TCS does not come under PF Act: HC
According to the July 27, 2006 notification by the Central Government, all IT companies are exempted from the provident fund under the PF Act.
By PTI |
MUMBAI: The Bombay High Court has allowed a petition by the Indian IT major Tata Consultancy Services Ltd (TCS) in which it had claimed that it does not fall under the Provident Fund Act.
The IT major had filed a writ petition before the court challenging the order of the Regional Provident Fund Commissioner directing it to submit records under the Provident Fund and Miscellaneous Provisions Act, 1952.
However, TCS opposed it and contended that it has its own Provident Fund system and its employees are members of the same. This was even recognised under the Income Tax Act, 1961, it said in a communique on the Bombay Stock Exchange.
According to the July 27, 2006 notification by the Central Government, all IT companies are exempted from the provident fund under the PF Act.
The company also contended that it was an establishment rendering "expert services" and as per the rules, does not come under the Provident Fund Act.
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