Dear Folks
Our company has received letter from PF office for levy of damages under Section 14-B. We have received Code Allotment letter on 8th May 1998 stating to deposit amount within 30 days from the date of letter.
1) Coverage given from Oct 1997, as we complete 20 employees during that month
2) Amount paid on 26/05/1998, after we got Code allotment letter on 8th May 1998
3) Interest demand u/s 7 Rs- 11714
4) Damages u/s 14B Rs. 34565/-
As we have made payment of PF Dues from Oct 1997 within 30 days from Code allotment are we still liable to pay interst & Liquidity damages ??
We have again recieved notice from PF Commissioner.
Please advise URGENTLY!!
Regards
Anuradha
From India, Pune
22Our company has received letter from PF office for levy of damages under Section 14-B. We have received Code Allotment letter on 8th May 1998 stating to deposit amount within 30 days from the date of letter.
1) Coverage given from Oct 1997, as we complete 20 employees during that month
2) Amount paid on 26/05/1998, after we got Code allotment letter on 8th May 1998
3) Interest demand u/s 7 Rs- 11714
4) Damages u/s 14B Rs. 34565/-
As we have made payment of PF Dues from Oct 1997 within 30 days from Code allotment are we still liable to pay interst & Liquidity damages ??
We have again recieved notice from PF Commissioner.
Please advise URGENTLY!!
Regards
Anuradha
From India, Pune
Dear Anuradha,
Here i pointwise address your query:
1) Coverage given from Oct 1997, as we complete 20 employees during that month
Here you made a error, you have to deposit your PF contribution from Nov 1997 itself & onward, even though you have not alloted a number.
2) Amount paid on 26/05/1998, after we got Code allotment letter on 8th May 1998
Check whether:
I. You have paid the entire contirbution from begining i.e. Oct.2007 or not? And you have sufficient proof to suport i.e. PF challan duly endoresed by the bank.
II. In the endoresement letter it was clarified that Your organisation coverrred w.e.f. Oct 2007 ?
3) Interest demand u/s 7 Rs- 11714
4) Damages u/s 14B Rs. 34565/-
You can ask PF authorities to provides you entire calculation w.r.t. above interest & Damages. On receipt of this you will able to check where the problem exist.
Hope this serve the purpose. In case of difficulty you can freely ask to me...
regards,
Manish Phansalkar
From India, Nasik
Here i pointwise address your query:
1) Coverage given from Oct 1997, as we complete 20 employees during that month
Here you made a error, you have to deposit your PF contribution from Nov 1997 itself & onward, even though you have not alloted a number.
2) Amount paid on 26/05/1998, after we got Code allotment letter on 8th May 1998
Check whether:
I. You have paid the entire contirbution from begining i.e. Oct.2007 or not? And you have sufficient proof to suport i.e. PF challan duly endoresed by the bank.
II. In the endoresement letter it was clarified that Your organisation coverrred w.e.f. Oct 2007 ?
3) Interest demand u/s 7 Rs- 11714
4) Damages u/s 14B Rs. 34565/-
You can ask PF authorities to provides you entire calculation w.r.t. above interest & Damages. On receipt of this you will able to check where the problem exist.
Hope this serve the purpose. In case of difficulty you can freely ask to me...
regards,
Manish Phansalkar
From India, Nasik
dear anuradha
mr manish is absolutely right.you should have made payment everymonth
by writing applied for against code number.
think logically PF department will pay to your members with ontrest from oct 1997 onwards where as you have deposited the same in may 98 .so from where they will pay intrest to members.
legally you are liablwe to pay intrest and damages both .
regards
j s malik
From India, Delhi
mr manish is absolutely right.you should have made payment everymonth
by writing applied for against code number.
think logically PF department will pay to your members with ontrest from oct 1997 onwards where as you have deposited the same in may 98 .so from where they will pay intrest to members.
legally you are liablwe to pay intrest and damages both .
regards
j s malik
From India, Delhi
Dear Manish & Mr. JS Malik
Thanks for your reply !
Check whether:
I. You have paid the entire contirbution from begining i.e. Oct.1997 or not? And you have sufficient proof to suport i.e. PF challan duly endoresed by the bank.
Yes we have paid..
II. In the endoresement letter it was clarified that Your organisation coverrred w.e.f. Oct 1997 ?
Yes, it is clearly stated.
What is the time limit for PF authorities to rise a enquiry ?? Do they have any ??
Like the IT has time limit of 8 year..
How can the PF authorities enquire for issues that is 12 year old... why haven't they raised this issue before..???
Our company is ready to pay the interest of the given period.. but why the damages ??
Regards
Anuradha
From India, Pune
Thanks for your reply !
Check whether:
I. You have paid the entire contirbution from begining i.e. Oct.1997 or not? And you have sufficient proof to suport i.e. PF challan duly endoresed by the bank.
Yes we have paid..
II. In the endoresement letter it was clarified that Your organisation coverrred w.e.f. Oct 1997 ?
Yes, it is clearly stated.
What is the time limit for PF authorities to rise a enquiry ?? Do they have any ??
Like the IT has time limit of 8 year..
How can the PF authorities enquire for issues that is 12 year old... why haven't they raised this issue before..???
Our company is ready to pay the interest of the given period.. but why the damages ??
Regards
Anuradha
From India, Pune
Dear Anuradhaji,
You are right but please confirm has P.F authorities issued any notice earlier related to above issue. As same case was happen in our company Ex employee has received a notice to deposite some amount but due to unknown reason that employee has destroyed that notice. After a long period of 7 year we received a notice from that department that so and so amount is due from your company and when we enquired about the same why you issued this notice after a period of 7 years then that office shown us three notice which were issued by them and same were received by our company's employee.
(Sahil)
From India, Delhi
You are right but please confirm has P.F authorities issued any notice earlier related to above issue. As same case was happen in our company Ex employee has received a notice to deposite some amount but due to unknown reason that employee has destroyed that notice. After a long period of 7 year we received a notice from that department that so and so amount is due from your company and when we enquired about the same why you issued this notice after a period of 7 years then that office shown us three notice which were issued by them and same were received by our company's employee.
(Sahil)
From India, Delhi
Dear Sahil No, PF authorities had not send any notice earlier on this matter before, we have asked that too.. Regards Anuradha
From India, Pune
From India, Pune
Dear Anuradha,
Once the Act applicable, from Oct.1997, your employer has to deposite the contribution from that month (i.e. Oct.1997), despite of allotment of Code. On having Code for your establishment then you are suppose to submit your Annual return for last contribution year (1997 - 1998). There is nothing in the Act that a employer has to remitt the contribution after allotment of Code rather it should be deposited from the date of coverage of establishment.
As far as the determination of escaped amount is concerned there is no time limt under the Act to initiate an enquiry by the P.F. Authorities u/s 7A, 7B, 7C,.
provided a reasonable opportunity shall be given to employer to present the case.
In your case you have deposited the contribution late therefore simple inerest u/s 7Q on damages u/s14-B depending upon the period up to date of case initiated. (37% in your case) shall be levied. The reason for such damage and interest is that the PF organisation has already credited the interest in your employees p.f. account from the date of coverage i.e. Oct. 1997.
Now the solution is that go to the concerend RPFC/APFC who is your enquiry officer in the case and request him to waive off the damages up to a reasonable extent and remit the same without making further delay. It will be in the favour of your company other wise the same will be recovered from the company accounts by appoiniting a recovery officer who will attach the company accounts.
No need to go to Tribunal other wise 75% has to be deposited in the court before initiating the legal proceedings.
Thanks
Mohd. Arif Khan
Once the Act applicable, from Oct.1997, your employer has to deposite the contribution from that month (i.e. Oct.1997), despite of allotment of Code. On having Code for your establishment then you are suppose to submit your Annual return for last contribution year (1997 - 1998). There is nothing in the Act that a employer has to remitt the contribution after allotment of Code rather it should be deposited from the date of coverage of establishment.
As far as the determination of escaped amount is concerned there is no time limt under the Act to initiate an enquiry by the P.F. Authorities u/s 7A, 7B, 7C,.
provided a reasonable opportunity shall be given to employer to present the case.
In your case you have deposited the contribution late therefore simple inerest u/s 7Q on damages u/s14-B depending upon the period up to date of case initiated. (37% in your case) shall be levied. The reason for such damage and interest is that the PF organisation has already credited the interest in your employees p.f. account from the date of coverage i.e. Oct. 1997.
Now the solution is that go to the concerend RPFC/APFC who is your enquiry officer in the case and request him to waive off the damages up to a reasonable extent and remit the same without making further delay. It will be in the favour of your company other wise the same will be recovered from the company accounts by appoiniting a recovery officer who will attach the company accounts.
No need to go to Tribunal other wise 75% has to be deposited in the court before initiating the legal proceedings.
Thanks
Mohd. Arif Khan
Dear Anuradha,
in all of first you have to know what is 14-B ???????????
14-B Power to recover damages - Where an employer makes default in the payment of any contribution to the Fund the Pension Fund or the Insurance Fund or in the transfer of accumulations required to be transferred by him under sub-section 2 of section 15 or sub-section 5 of section 17 or in the payment of any charges payable under any other provision of this Act or of any Scheme or Insurance Scheme or under any of the conditions specified under section 17, the Central Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by notification in the Official Gazette, in this behalf may recover from the employer by way of penalty such damages, not exceeding the amount of arrears, as may be specified in the Scheme.
There are sufficiant replies for your satisfactory.first fault you didnot deposit pf dues with time,actually when you apply for Pf coverage you must deposited pf contribution month wise like A/F(applied for) your cheque would clear. second thing you delay for payment and you deposited intrest.having deposited challan you should intimate to RPFC with attach deposite challan.if u r deposited intrest it is necessary u will be deposited damages.there is an attachment rate of damages your self u can calculate otherwise ask to RPFC how they have calculate. but deposit damages necessary.
more deatil can contact
Kumar#9811747078
From India, Calcutta
in all of first you have to know what is 14-B ???????????
14-B Power to recover damages - Where an employer makes default in the payment of any contribution to the Fund the Pension Fund or the Insurance Fund or in the transfer of accumulations required to be transferred by him under sub-section 2 of section 15 or sub-section 5 of section 17 or in the payment of any charges payable under any other provision of this Act or of any Scheme or Insurance Scheme or under any of the conditions specified under section 17, the Central Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by notification in the Official Gazette, in this behalf may recover from the employer by way of penalty such damages, not exceeding the amount of arrears, as may be specified in the Scheme.
There are sufficiant replies for your satisfactory.first fault you didnot deposit pf dues with time,actually when you apply for Pf coverage you must deposited pf contribution month wise like A/F(applied for) your cheque would clear. second thing you delay for payment and you deposited intrest.having deposited challan you should intimate to RPFC with attach deposite challan.if u r deposited intrest it is necessary u will be deposited damages.there is an attachment rate of damages your self u can calculate otherwise ask to RPFC how they have calculate. but deposit damages necessary.
more deatil can contact
Kumar#9811747078
From India, Calcutta
Dear Arif,
Please let me know the following things.
1. Till what date PF contribution should be made for the month?
2. When to submit Annual Return?
3. What is RPFC/APFC?
I am a Graduate in Arts and did Diploma in HR and then Diploma in Labour Law. But I am not in touch with this subjects as I am in recruitment and find it very difficult getting job in General HR as my CV gets rejected at initital screening itself. Please let me know if you have any openig for the same.
From India, Mumbai
Please let me know the following things.
1. Till what date PF contribution should be made for the month?
2. When to submit Annual Return?
3. What is RPFC/APFC?
I am a Graduate in Arts and did Diploma in HR and then Diploma in Labour Law. But I am not in touch with this subjects as I am in recruitment and find it very difficult getting job in General HR as my CV gets rejected at initital screening itself. Please let me know if you have any openig for the same.
From India, Mumbai
Dear Anuradha,
Dr. Kumar has given a good point and you can have a meeting with PF department & re-calculate the same and submit an application to PF officer regarding your revised summary.
We have sorted out so many cases like this.If you feel any problem,please tell us the area of your company where it registered and copy of your application/challan etc.
Best Regards
Sajid
From India, Delhi
Dr. Kumar has given a good point and you can have a meeting with PF department & re-calculate the same and submit an application to PF officer regarding your revised summary.
We have sorted out so many cases like this.If you feel any problem,please tell us the area of your company where it registered and copy of your application/challan etc.
Best Regards
Sajid
From India, Delhi
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