Section 8 of The Provident Funds Act, 1925
Power to apply the Act to other Provident Funds.
1[(1)] The 2[appropriate Government] may, by notification in the Official Gazette, direct that the provisions of this Act 3[(except section 6A)] shall apply to any Provident Fund established for the benefit of its employees by any local authority within the meaning of the Local Authorities Loans Act, 1914 (9 of 1914), and, on the making of such declaration, this Act shall apply accordingly, as if such Provident Fund were a Government Provident Fund and such local authority were the Government. 4[(2) The 5[appropriate Government] may, by notification in the Official Gazette, direct that the provisions of this Act 6[(except section 6A)] shall apply to any Provident Fund established for the benefit of the employees of any of the institutions specified in the Schedule, or of any group of such institutions, and, on the making of such declaration, this Act shall apply accordingly, as if such Provident Fund were a Government Provident Fund and the authority having custody of the Fund were the Government: Provided that section 6 shall apply as if the authority making the contributions referred to in that section were the Government.
- (3)The 5[appropriate Government] may, by notification in the Official Gazette, add to the Schedule the name of any public institution it may deem fit, and any such addition shall take effect as if it had been made by this Act.] 7[(4) In this section "the appropriate Government" means--
- (a)in relation to a cantonment authority, a port authority for a major port, and any institution which, or the objects of which, appear to the Central Government to fall within List I in the Seventh Schedule to 8[the Constitution], the Central Government; and
- (b)in other cases, the State Government. Explanation.--"The State Government" in relation to an institution registered under the Societies Registration Act, 1860 (21 of 1860) means the State Government of the State in which the society is registered.]
Summary
- The appropriate government can extend all provisions of the Provident Funds Act, except Section 6A, to any provident fund set up for employees of a local authority.
- The government can also extend the Act, except Section 6A, to provident funds of any institution listed in the Schedule.
- When the Act is applied to these other funds, they are treated as if they are Government Provident Funds, and the employer or local authority is treated as the government.
- When applied to scheduled institutions, Section 6 regarding deductions applies as if the contributing authority of that institution were the government.
- The appropriate government can add any public institution it thinks fit to the Schedule by publishing a notification in the Official Gazette (a government publication).
- The Central Government acts as the appropriate government for cantonments, major port authorities, and institutions whose objects fall under List I of the Constitution's Seventh Schedule, while the State Government acts as the appropriate government in all other cases.
Practical examples
FAQ
1. Which specific section of the Provident Funds Act is excluded when applying the Act to other provident funds under Section 8?
Section 6A is completely excluded when the Act is applied to local authorities or scheduled institutions.
2. How can the appropriate government add new institutions to the Schedule of the Act?
The appropriate government can add the name of any public institution to the Schedule by issuing a notification in the Official Gazette.
3. Who is the appropriate government for a major port authority or cantonment authority?
The Central Government is the appropriate government for major port authorities, cantonment authorities, and institutions falling under List I of the Constitution's Seventh Schedule.
4. What does State Government mean for an institution registered under the Societies Registration Act, 1860?
It means the State Government of the specific State where the society is registered.
Test yourself
1.Which section of the Provident Funds Act is explicitly excluded from being applied to other provident funds under Section 8?
2.For which of the following is the Central Government defined as the appropriate Government?
3.When the Act is applied to an institution in the Schedule, how does Section 6 apply to its contributions?
4.Under which Act must a local authority be defined for Section 8(1) to apply?
5.How does an addition made by the government to the Schedule of institutions take effect?