There have been a couple of instances where the employer has remitted the PF contribution on 18th and 20th of the month in the past period. The date of realisation stamp on the challans by SBI is after 21st of the month.
The PF dept has raised a demand for interest and damages for 6 days in both the cases.
Please clarify whether this is right - Should not the date of remittance be taken to account rather than the date of realisation?
From India, Chennai
The PF dept has raised a demand for interest and damages for 6 days in both the cases.
Please clarify whether this is right - Should not the date of remittance be taken to account rather than the date of realisation?
From India, Chennai
The damages can b levied only when there is default in payment of the contributions. In your case there is no default but there is only a delay and hence no damages can be levied for it. Above all, the date on which the amounts are remtted shall be the determinative factor in computing the default or delay. You can accordingly make out your case before P.F.
B.Saikumar
Mumbai
From India, Mumbai
1898B.Saikumar
Mumbai
From India, Mumbai
Thanks for your valuable input, Mr Saikumar.
In my case , the inward date stamp ( I presume I can call this the remittance date) of SBI says 18th and 20th respectively. The cheque realised stamp ( after the cheque has cleared from my bank and gone back to SBI ) by SBI is 21st and 23rd respectively. This is for the year 2009-10.
The PF authorities have therefore claimed interest and penal damages for 6 and 8 days respectively.
K S Balakrishnan
Chennai
From India, Chennai
In my case , the inward date stamp ( I presume I can call this the remittance date) of SBI says 18th and 20th respectively. The cheque realised stamp ( after the cheque has cleared from my bank and gone back to SBI ) by SBI is 21st and 23rd respectively. This is for the year 2009-10.
The PF authorities have therefore claimed interest and penal damages for 6 and 8 days respectively.
K S Balakrishnan
Chennai
From India, Chennai
How an employer can be held responsible, assuming the delay in realisation is due to some technical problem in the bank. In my view, the date of remittance is determinative.Once the cheque is realised, it must be deemed to have been paid with effect from the date of remittance. As I remember,there will be grace period also as per IncomeTax Act.Please check-up. However the problem arises when the cheque is not realised. You can make your submissions accordingly.
B.Saikumar
Mumbai
From India, Mumbai
B.Saikumar
Mumbai
From India, Mumbai
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Circular on PF Damage & Interest Calculations.pd f
PF Interest calc.xls