E.S.I.C. Challan Payment Delays: What Happens If You Miss the Due Date?

Hello All,

I have a query regarding the E.S.I.C. challan. Suppose that we can't deposit the E.S.I.C. challan before the due date. Or, if deposited before the due date and then clearance on the bank side occurs after the due date, what would happen? Please suggest or advise me.

With Regards,
Tarun Dalal

ESI has to be remitted before the 21st of the subsequent month. The cheque/challan date will be taken for audit purposes if the cheque clearance happens before 15 days from the date of deposit. Otherwise, only the clearance date will be taken as the remittance date. Late payment/remittance of PF/ESI will be notified in the CARO Report by the Auditors.

So, all we need to do is plan our payments accordingly.

J. Udhay Attvar

Dear Sender,

Please note that there should not be any delay in making statutory payments. As regards ESI recovery (both for employer and employee), it should be deposited on or before the 21st of every succeeding month. The bank seal is considered the date of remittance and is observed by external auditors as evidence for statutory payment.

Additionally, any delay in payment will be notified by the appropriate authorities when they visit our office and inspect the records.

L. Kumar

Hi Kumar,

I fully agree. However, if we present a cheque from another bank to SBI for ESIC remittance, upon receipt of the challan, they only stamp it with a "received" seal on that date. Upon clearance, they affix one more seal called "clearance." There is always a 5-day gap in our concern.

My concern is why the company has to suffer due to the delay in collection.

J. Udhay Attvar

Hi!

That is precisely our concern because not only the cheque is from another bank and it takes a minimum of 5 days for clearance, but the primary reason is that it is always subject to the realization of the cheque.

Regards,
Mandar J