Dear friends,
We all know that PF is to be deposited by 15th of each month. The question is: if salary for March is paid in April, PF has to be deposited by 15th April or 15th May? Further, 5 days grace period is allowed by the Department.
In this case Jewel Homes Pvt Ltd took the plea that PF has to be deposited within 20 days (15 days + 5 days grace period) of close of month in which salary is paid and not the month for which salary is paid, and interest for delay should be charged from 21st day only.
Kerala High Court in its order dated 10.1.2012 (copy attached) has held as under:
a) PF has to be deposited within 20 days (15 days + grace period of 5 days) of close of month for which salary is paid and not of month in which salary is paid.
b) In case of delay, interest will be charged from 16th day and not from 21st day, i.e. grace period is allowed for payment of PF contribution only and not for calculation of interest and damages in case of delay.
Thanks
We all know that PF is to be deposited by 15th of each month. The question is: if salary for March is paid in April, PF has to be deposited by 15th April or 15th May? Further, 5 days grace period is allowed by the Department.
In this case Jewel Homes Pvt Ltd took the plea that PF has to be deposited within 20 days (15 days + 5 days grace period) of close of month in which salary is paid and not the month for which salary is paid, and interest for delay should be charged from 21st day only.
Kerala High Court in its order dated 10.1.2012 (copy attached) has held as under:
a) PF has to be deposited within 20 days (15 days + grace period of 5 days) of close of month for which salary is paid and not of month in which salary is paid.
b) In case of delay, interest will be charged from 16th day and not from 21st day, i.e. grace period is allowed for payment of PF contribution only and not for calculation of interest and damages in case of delay.
Thanks
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