A number of issues have been raised by employers in the context of compliance of Self-Assessment Scheme. The Questions alongwith clarifications issued by EOBI are circulated as under for the benefit of all concerned.

Q.1)     What is the year of commencement of registration under Self Assessment Scheme?

          Ans) Perusal of Ordinance No. F. No.2(1)/2001-Pub.- dated 6/10/2001 reveals that the Self-Assessment Scheme was introduced in the year 2001. It has been replaced with the improved version vide Ordinance No. F.2(1)/2002-Pub. dated 27/8/2002. Registration under the revised Scheme commences from the date of promulgation of said Ordinance i.e 1/7/2002. The scheme has been clarified in Circular No.17 dated 9/9/2002 which is available on our web-site No. http://www.eobi.gov.pk/. Your specific queries are briefly replied as under:-

Q.a) Whether contribution under Self-Assessment Scheme is to be paid from current year (i.e 2002-03) if so then from which month July, 2002 or from the month of filing the application for the said scheme?

Ans).  As explained above the new scheme is applicable to the Financial Year 2002-03 hence contribution @ of Rs. 150/- per person per month is payable from July, 2002.

Q.b) Whether the registration under Self-Assessment Scheme may be effective from 2001-2002 ( if not yet audited) and additional amount of contribution for the last year be paid to cover the year 2001-2002 in the Self-Assessment Scheme?

Ans) The scheme is applicable to the year 2002-03. For earlier year the provision of Self-Assessment Scheme as per Ordinance F.No.2(1)/2001-Pub.- dated 6/10/2001 shall be applicable

Q.2)     Which documents are required to be attached by the employer opting for SAS?

            Ans) There is no requirement for attachment of the documents except filing PR-10. The document is self-explanatory contains instructions on its back. The form and requirements have been kept simple to facilitate the employers and encourage them to avail the simplified scheme.

Q.3)     Which records / documents are to be produced to the concerned authorities of

EOBI while submitting the Application Form of SAS?

            Ans) The procedure has been explained in Circular No.17 dated 9-9-2002, the Form PR-10 has to be filled in the Regional Office who shall acknowledge the receipt after entering the form in his register. PR-02 Forms shall be provided to the applicant and be filed in the Region and contribution shall be deposited on PR-03 in the authorized branch of HBL alongwith copy of PR-02 form in the first month of the financial year. It will be the responsibility of the applicant to fill in the name and particular of his employees and submit the duly filled in form in the Region. The contribution shall be calculated on the basis of number of persons declared in form PR-02. The contribution shall be deposited by filling up form PR-03 which is available in both Regional Office and HBL branches. The form can also be down-loaded from Web-site No. http://www.eobi.gov.pk/.

            Q.a) Address of the Regional Office where applications are to be filled.

Ans) Addresses of Regional Offices are available on our Web-site. However, a copy of the Rehnuma-e-Pension is attached for convenience of the employers.

Q.b) Procedure for payment of contribution / arrears alongwith the application.

Ans) Section 12(A) lays down that the declaration so made shall be accepted without any question provided no demand of contributions previously created remains outstanding against such employer. It is obvious that the employer desiring to avail SAS has to pay the arrears before submission of the form PR-10. He has to contact Regional Office concerned to get details for arrears and deposit the same by filing PR-03 in authorized branches of HBL. Guidance can be provided by the Regional Heads, who may be contacted in this regard.

Q.4)     Whether contribution i.e Rs.150/- per employee per month under Self-Assessment Scheme is in accordance with requirement of section-9?

Ans).    Para-4 of your letter refers to payment of contribution in accordance with Section-9 of EOB Act, 1976. You attention is invited towards the amendment in section-9 whereby third proviso of sub-section (1) of Section-9 categorically provides that fixed amount of one hundred and fifty rupees in respect to every person in insurable employment shall be paid.

Q.5)     What does S. No.4 of Form disclose as to the amount of contribution paid for the preceding 12 months?

Ans).    S.No.4 of PR-10 Form

The amount of contribution paid for the preceding 12 months indicates the amount paid in 12 months prior to filing the said form.

Q.6)     S. No. 5 of Form PR-10 mentions amount of last contribution. Whether it is for last month or else and it pertains to which last period.?

Ans)     S.No.5 of PR-10 Form indicates the amount of contribution payable in the month of June, 2002 immediately prior to launching of the Scheme in July, 2002.

Q.7)     Does the employer have to mention the evasion detected during last audit of his records even though the same has already been settled or paid to the Institution?

Ans).   The employer has to specify the evasion detected as a result of last audit which may be bifurcated into two portions as under:-

Ø      The amount of evasion detected in audit agreed by the employer and paid

Ø     The amount detected which has not been paid on account of dispute (The nature and stage of dispute, if necessary, may be specified).

Ø     As explained above the arrears have to be settled before opting for the Self-Assessment Scheme. The case of disputed demands which are not settled / paid shall fall outside the purview of Self-Assessment Scheme.

Q.8)     Can any employee opt for self-assessment scheme w.e.f any date of his choice if so, what will be the base date on the basis of which a lump sum contribution for two years will be worked out?

Ans).    The Scheme is applicable to the Financial year 2002-03 hence contribution @ of Rs. 170/- per person per month ( Rs. 150/- as employer’s share of contribution + Rs.20/- as employee’s share of contribution) is payable from July, 2002 or from the date of application on the form PR-10. The contribution at aforesaid rate shall have to be paid from July 2002 onward.

Q.9)     Weather at the time of operation of self-assessment scheme, the names of all the workers covered under the scheme are to be shown if so, can we be permitted to replace any worker during the operation of the scheme. What will be the fate of the workers newly employed after the introduction of self-assessment scheme?

Ans).    Section 12A(2) provides that any employer who is already registered under normal pension scheme and opts for registration under self-assessment scheme shall not decrease the total amount of contributions and number of insured persons already registered on 1/7/2002.

Section 12A(3) provides that the employer shall ensure that the amount of contribution and number of registered insured workers declared by him shall not decrease during the period of two years of self-assessment scheme. The Self-Assessment Scheme envisages immunity from checking for two years and does not envisage exemption from payment of contribution therefore names of the new employees shall be furnished for registration in accordance with law.

Q.10)   According to the amendment even after operation of Self-Assessment Scheme contribution is to be made according to the actual wages drawn by every employee, but the Institution’s local staff has asked to deposit Rs. 150/- for each worker irrespective of his actual wages?

Ans)     The proviso (iii) has been added in Section-9. According to this amendment the employers opting for Self-Assessment Scheme shall be liable to pay fixed amount of one hundred and fifty rupees in respect of every person in his insurable employment irrespective of his wages or emoluments and the wages for the purpose of calculation of benefits shall be treated as three thousand rupees per month.

 

 

                                                                                                     ( J. R. SIDDIQUI)

                                                                                            DIRECTOR GENERAL (OPS)