Calculation of Interest and damages on EPF & ESI dues
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Calculation of Interest and damages on EPF & ESI dues

rao_rama Started The Discussion:

Dear All ,

Need some info.One of our client has EPF and ESI dues for 8 months.They want to clear it.My questions are...

1.What is the penal interest & damages they need to pay in case of PF

2.What is the interest rate & damages for ESI.

Waiting for response from the professionals.

Thanks
Rao

K.P.Mohanasundaram - Member Since: Mar 2012
Dear Mr.Rao,

Penal Interest under section 7Q:
# No.of days delayed in making payment x 12% p.a

Penal Damages under section 14B:
# No.of days delayed in making payment x 5% p.a (Less than 2 months)
# No.of days delayed in making payment x 10% p.a (2 months and above but less than 4 months)
# No.of days delayed in making payment x 15% p.a (4 months and above but less than 6 months)
# No.of days delayed in making payment x 25% p.a (6 months and above)

I have attached worksheet for the above....


Attached FilesProvided by community member K.P.Mohanasundaram. Join us to learn and grow with your peers.
File Type: xls EPF Damages Calculation.xls (22.0 KB, 5430 views)
munnabhai1971 - Member Since: May 2011
Dear Mohanji, Too Good.....Very Knowledgeful..Lot of Thanks from me! Manesh Wakodkar Aurangabad

CA Jaspreet Bedi - Member Since: Nov 2012
Is EPF Penal interest calculation and ESI penal interest calculation is same of different and if different please update me with that calculation

B. Ravi - Member Since: Feb 2013
Dear Sir, Thank U very much. It is very useful to calculate the damages & interest. I have calculated & given to management, as i was under pressure. Ravi

Akhil.Gupta - Member Since: May 2007
ESI INTEREST AND DAMAGE FOR LATE PAYMENT as PF-

EMPLOYEES STATE INSURANCE CORPORATION
PANCHDEEP BHAWAN CIG ROAD NEW DELHI


No. T-11/13/8/2001 Rev. I Dated: 8.2005

MEMORANDUM

Sub: Reduction in rate of interest payable for delayed payment of contribution � Amendment of Reg. 31-A of ESI (Genl.) Regulations, 1950.

Sub-Section (5) of Section 39 of the ESI Act 1948 provides that if any contribution payable under this Act is not paid by the Principal Employer on the date on which such contribution has become due, he shall be liable to pay simple interest @12% per annum or at such higher rate as may be specified in the Regulations, till the date of its actual payment.

Provided that higher interest specified in the Regulations shall not exceed the lending rate of interest charged by any scheduled bank.

The interest rate on commercial advances is fluctuating. The rate of interest being charged by the ESI Corporation on delayed payment of contribution is, therefore, more than the rate of interest being charged for commercial advances as well as lending rate of interest charged by the scheduled banks.

Now it has been decided by the Corporation that an employer who fails to pay contribution within the periods specified in Regulation-31 shall be liable to pay simple interest @12% per annum in respect of each day of default or delay in payment of contribution. In this connection, a proviso to Reg. 31 of the ESI (Genl.) Reg. 1950 has been added and notified in the Gazette of India, Part III, Section 4 vide letter No. N-12/13/1/2005 P&D dated 6.7.2005 effective from 1.10.2005.
� In Regulation 31-A of the ESI (General) Reg. 1950, the words �15% shall be substituted by the words �12%�.
The above notification was circulated vide Hqrs. letter No. N-12/13/1/2005 P&D dated 12.8.2005.

It is, therefore, requested that on all delayed payments of contribution, the interest may be charged @ 12% per annum with effect from 1.10.2005.

This issues with the approval of Insurance Commissioner.
Please acknowledge receipt.
Hindi version will follow.


(V.V.S.P. Ramachandra Rao)
JOINT DIRECTOR (Rev.)



To
The Regional Director/Director/ Joint Director I/c
Regional Office/Sub-Regional Office
ESI Corporation
�__________________




Copy to:
All Joint Director (F)/Dy. Director (F), RO/SRO _________________
Joint Director (Vig.) NZ/SZ/WZ/EZ
All Officers at Hqrs. office.
All Branches at Hqrs. office.
Guard File.




JOINT DIRECTOR (Rev.)


DAMAGE :-

# No.of days delayed in making payment x 5% p.a (Less than 2 months)
# No.of days delayed in making payment x 10% p.a (2 months and above but less than 4 months)
# No.of days delayed in making payment x 15% p.a (4 months and above but less than 6 months)
# No.of days delayed in making payment x 25% p.a (6 months and above)

klepakshi1967@yahoo.com - Member Since: Jun 2008
Do you need more clarification on the above subject? I can help you with free of cost Lakshminaryana 9866917232

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