Dear All,
Regarding appended write-up, from a reliable source based on Madras & Calcutta High Court Judgement.
"CONCLUSION REGARDING ISSUE OF ‘DUE DATE’:
Due date for payment of Provident Fund contributions is 15 days from the end of month in which wages are paid (plus grace period of 5 days). Thus, if wages pertaining to April’ 2012 is paid on, say, 7th May’ 2012, due date for payment of Provident Fund contribution is 20th June’ 2012 [i.e. 15th June' 2012 as increased by grace period of 5 days]."
It is very clear that the PF officials have not accepted the above mentioned procedure, which is further substantiated by the following point.
• In the online system there are two columns named wage month and contribution month. If we select the wage month as November it would automatically show the contribution month as December, hence the system would calculate the interest for the respective period by default.
• In our case, the company pays the salary on the 5th of every month (wages pertaining to April’ 2012 is paid on, say, 5th May’ 2012) and subsequently we pay the PF contribution on the 15th of the same month (May 15, 2012), in this cycle the amount realized date had crossed 20th of that particular month (realized date after May 20, 2012) then the PF office sent a show-cause notice to pay the interest for the non contribution period, for the days after 15th with damages, more so the interest and the damages was calculated up to the date of the show-cause notice (for example it could be 1 year, 2years etc).
Looking forward for your exert opinion in this regard.
Regards.
Shanmuganand
Asst Mgr-HR & Admin
Regarding appended write-up, from a reliable source based on Madras & Calcutta High Court Judgement.
"CONCLUSION REGARDING ISSUE OF ‘DUE DATE’:
Due date for payment of Provident Fund contributions is 15 days from the end of month in which wages are paid (plus grace period of 5 days). Thus, if wages pertaining to April’ 2012 is paid on, say, 7th May’ 2012, due date for payment of Provident Fund contribution is 20th June’ 2012 [i.e. 15th June' 2012 as increased by grace period of 5 days]."
It is very clear that the PF officials have not accepted the above mentioned procedure, which is further substantiated by the following point.
• In the online system there are two columns named wage month and contribution month. If we select the wage month as November it would automatically show the contribution month as December, hence the system would calculate the interest for the respective period by default.
• In our case, the company pays the salary on the 5th of every month (wages pertaining to April’ 2012 is paid on, say, 5th May’ 2012) and subsequently we pay the PF contribution on the 15th of the same month (May 15, 2012), in this cycle the amount realized date had crossed 20th of that particular month (realized date after May 20, 2012) then the PF office sent a show-cause notice to pay the interest for the non contribution period, for the days after 15th with damages, more so the interest and the damages was calculated up to the date of the show-cause notice (for example it could be 1 year, 2years etc).
Looking forward for your exert opinion in this regard.
Regards.
Shanmuganand
Asst Mgr-HR & Admin