Curious About PF Office Reducing Penal Interest Rates? Let's Discuss Real Cases!

Please refer to Section 14-B and para 32A of the PF Act. I am wondering if anyone has any clue about cases where the PF office has reduced the penal interest rates or granted waivers for penal interests and damages.

Thanks,

Sudeep

Delhi High Court Judgment on 7Q Interest Charges

Please find herein a full bench judgment of the Delhi High Court quashing 7Q interest charges, which may be an answer to your query.

Regards

Sir, I have received a PF damages notice against 7Q and 14B. Can we get a concession in the payment?

Sir,

The company had not made the contributions to the trust for a period of three years. My question is whether we have to consider only Section 7Q or Section 14-B to book liability in the financial statement.

With regards,
M C Manjunath

Sir,

Please provide a solution for 14b and 7q (EPF). Our organization maintains an unrecognized PF and provides all benefits to staff. However, in 2013, the EPF department enrolled us back to 2009, and our organization made the payment. Now in 2017, heavy damages are being demanded with a penalty of approximately 38 lakh.

Please help.

Ashish Agarwal
9782921113

Dear Ashish ji, no solution can be given to you on such a subject by anyone on such a platform. You need to engage an expert advisor and provide them with all the facts, figures, and documents in this regard.

It seems to me that your establishment has been covered under EPF since 2009 by the authority in the year 2013. It also appears that your establishment has made the payment of dues in the PF account. However, there is a delay in payments. You were supposed to make the payments every month by the 15th since the date of your coverage, i.e., in 2009. You are liable to pay interest on the dues at 12% per annum and damages up to a maximum of 25%, depending on the number of months of delay in payment.

You are fortunate that there was no arrest for you in this matter. You cannot have any unrecognized PF account. The deduction made by you from the employee's salary is an unauthorized/illegal deduction.

Respected Sir,

My proprietary company, which was engaged in labor contracts, was closed in 2010. Notice under Section 7A was served and closed in 2013, and we promptly paid the dues of ₹17,000. Now, after 8 years of the company's closure and 5 years since its closure, there is a demand of ₹23,000 and ₹83,000 under Sections 7Q and 14b. As a closed company, are we liable to pay or can we seek some relief?

Thanks & Regards

How much amount or percentage is required to pay in PF damage/penalty in 14B & 7Q?

Dear Ashish,

In the case of the 'Pre-discovery period,' i.e., where the coverage is made after the due date, the damages are levied at 10% per annum. Moreover, the amount of employees' share is also not payable if contributions are not deducted from them. There is no liability under section 7Q in such matters.

Please check and tally the actual date of remittance from the statement. The computer-generated statement is also making errors.