Penal Damages Under Sec.14b Of P.f.act. - PDF Download

Salary statements of our company was not prepared for the month of April, May and June as the negotiations were going on with employees. In July salary increase was agreed upon and Arrears salary of April, May and June was paid in July. We have deposited arrears of P.F.Amount relating these 3 months in July. As salary statements was prepared in July quantum of P.F.Amount was not known and we could not deposit P.F.Contributions within the respective due dates. Regional P.F.Commissioner has issued notice to pay Interest U/s. 7Q and Penal Damages U/s.14B. Can we request Regional P.F.Commissioner to waive the Penal Damages and Interest charges as the default is not willful and we are not habitual defaulters in depositing P.F.Contributions.
Your advice please,
BCSHASHI

Dear seniors
Share your experience to this case
Regards
Hekarthik

In my view, salary negotiation can not be a convincing ground for not depositing the P.F contributions. Nevertheless, you can inform them the reason and plead that you are not a willful defaulter and cite the fact of depositing arrears to substantiate this point and pray for waiving of the interest and damages as intention to default is absent.The P.F Authority has discretion to waive or at least to reduce damages.
B.Saikumar

I fully agree with opinion given by Mr B.Saikumar.
Sibabrata Majumdar
Management Consultant-Legal & HR
Kolkata
Mb:9830023706
attribution https://www.citehr.com/483500-penal-...#ixzz2s8f7Q4ii

Salary statement was not prepared for 3 months
Does that mean the company did not pay salary for 3 months ???
if so, you are in violation of payment of wages act and liable to more penalty.
If you have paid salary for each of those months, then there is absolutely no reason why pf should not be paid at the same time.
PF on arrears can always be paid later

Yes I agree with Saswatabanerjee
if you Do such not paid salary / wages for three months then you are in violation under payment of wages act. If you have paid it timely and not deposited PF contribution then it comes under the same act for panel damage 14B and interest 7Q.
Doesn't meter or you have paid arrears later. PF contribution will payable on the time of payment. there is no violation for paying contribution.

Dear All,
I do not think that EPFO will waive off Interest & Damages. While you have paid the contribution on arrear amount also then its batter to pay Interest & damages also for delayed period, which will be very minimal amount.
Rgds/Jitender.

Dear All,
PF dept. may not waive. Because they have to justify the interest to the members,
Hrkpati

Dear BCSHASHI,
I have not understood what you are saying. When you are saying that arrears salary of April, May and June is paid in July, means you have paid the regular salary of April, May and June on time.
This quote is confusing. Have deposited only the PF amount on arrears? Or you have deposited PF amount on arrears in July, then when you have deposited the PF amount on regular salary?
You can not request Regional P.F.Commissioner to waive the Penal Damages and Interest charges. You are a defaulter. You are defaulter for three months. Mind well, whether you pay salary to employees or not, you are liable to make statutory remittances on due dates.

Hi KK
If the salary is not paid, the PF is not due right ?
Only when the salary is actually paid, you have to pay PF within 15th of the next month.