Dear All,
I need some information. One of our clients has EPF and ESI dues for 8 months, and they want to clear it. My questions are:
1. What is the penal interest and damages they need to pay in the case of PF?
2. What is the interest rate and damages for ESI?
I am waiting for responses from professionals.
Thanks,
Rao
From India, Hyderabad
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7I need some information. One of our clients has EPF and ESI dues for 8 months, and they want to clear it. My questions are:
1. What is the penal interest and damages they need to pay in the case of PF?
2. What is the interest rate and damages for ESI?
I am waiting for responses from professionals.
Thanks,
Rao
From India, Hyderabad
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Dear Mr. Rao,
Penal Interest under section 7Q:
# Number of days delayed in making payment x 12% p.a.
Penal Damages under section 14B:
# Number of days delayed in making payment x 5% p.a. (Less than 2 months)
# Number of days delayed in making payment x 10% p.a. (2 months and above but less than 4 months)
# Number of days delayed in making payment x 15% p.a. (4 months and above but less than 6 months)
# Number of days delayed in making payment x 25% p.a. (6 months and above)
I have attached a worksheet for the above....
From India, Erode
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Penal Interest under section 7Q:
# Number of days delayed in making payment x 12% p.a.
Penal Damages under section 14B:
# Number of days delayed in making payment x 5% p.a. (Less than 2 months)
# Number of days delayed in making payment x 10% p.a. (2 months and above but less than 4 months)
# Number of days delayed in making payment x 15% p.a. (4 months and above but less than 6 months)
# Number of days delayed in making payment x 25% p.a. (6 months and above)
I have attached a worksheet for the above....
From India, Erode
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Is EPF Penal interest calculation and ESI penal interest calculation is same of different and if different please update me with that calculation
From India, Gurgaon
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From India, Gurgaon
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(Fact Checked)-The calculation of EPF penal interest and ESI penal interest is different. EPF penal interest is calculated under Section 7Q of the EPF Act, while ESI penal interest is governed by the ESI Act. For EPF, the penal interest rate is 12% per annum, and for ESI, it is 12% per annum as well. Ensure compliance with both Acts for accurate calculations. (1 Acknowledge point)
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Dear Sir, Thank U very much. It is very useful to calculate the damages & interest. I have calculated & given to management, as i was under pressure. Ravi
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The information provided by the user is accurate based on the rules and provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, regarding penal interest and damages for delayed payments. (1 Acknowledge point)
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ESI INTEREST AND DAMAGE FOR LATE PAYMENT as PF-
EMPLOYEES' STATE INSURANCE CORPORATION
PANCHDEEP BHAWAN CIG ROAD NEW DELHI
No. T-11/13/8/2001 Rev. I Dated: 8.2005
MEMORANDUM
Sub: Reduction in the rate of interest payable for delayed payment of contribution – Amendment of Reg. 31-A of ESI (Genl.) Regulations, 1950.
Sub-Section (5) of Section 39 of the ESI Act 1948 provides that if any contribution payable under this Act is not paid by the Principal Employer on the date on which such contribution has become due, he shall be liable to pay simple interest at 12% per annum or at such a higher rate as may be specified in the Regulations until the date of its actual payment.
Provided that the higher interest specified in the Regulations shall not exceed the lending rate of interest charged by any scheduled bank.
The interest rate on commercial advances is fluctuating. The rate of interest being charged by the ESI Corporation on delayed payment of contribution is, therefore, more than the rate of interest being charged for commercial advances as well as the lending rate of interest charged by scheduled banks.
Now it has been decided by the Corporation that an employer who fails to pay the contribution within the periods specified in Regulation-31 shall be liable to pay simple interest at 12% per annum for each day of default or delay in payment of contribution. In this connection, a proviso to Reg. 31 of the ESI (Genl.) Reg. 1950 has been added and notified in the Gazette of India, Part III, Section 4 vide letter No. N-12/13/1/2005 P&D dated 6.7.2005 effective from 1.10.2005.
In Regulation 31-A of the ESI (General) Reg. 1950, the words "15%" shall be substituted by the words "12%".
The above notification was circulated vide Hqrs. letter No. N-12/13/1/2005 P&D dated 12.8.2005.
It is, therefore, requested that on all delayed payments of contribution, the interest may be charged at 12% per annum effective from 1.10.2005.
This issue has the approval of the Insurance Commissioner.
Please acknowledge receipt.
The Hindi version will follow.
(V.V.S.P. Ramachandra Rao) JOINT DIRECTOR (Rev.)
To The Regional Director/Director/Joint Director I/c Regional Office/Sub-Regional Office ESI Corporation
Copy to: All Joint Director (F)/Dy. Director (F), RO/SRO Joint Director (Vig.) NZ/SZ/WZ/EZ All Officers at Hqrs. office. All Branches at Hqrs. office. Guard File.
JOINT DIRECTOR (Rev.)
DAMAGE: # Number of days delayed in making payment x 5% p.a (Less than 2 months) # Number of days delayed in making payment x 10% p.a (2 months and above but less than 4 months) # Number of days delayed in making payment x 15% p.a (4 months and above but less than 6 months) # Number of days delayed in making payment x 25% p.a (6 months and above)
From India, Kota
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EMPLOYEES' STATE INSURANCE CORPORATION
PANCHDEEP BHAWAN CIG ROAD NEW DELHI
No. T-11/13/8/2001 Rev. I Dated: 8.2005
MEMORANDUM
Sub: Reduction in the rate of interest payable for delayed payment of contribution – Amendment of Reg. 31-A of ESI (Genl.) Regulations, 1950.
Sub-Section (5) of Section 39 of the ESI Act 1948 provides that if any contribution payable under this Act is not paid by the Principal Employer on the date on which such contribution has become due, he shall be liable to pay simple interest at 12% per annum or at such a higher rate as may be specified in the Regulations until the date of its actual payment.
Provided that the higher interest specified in the Regulations shall not exceed the lending rate of interest charged by any scheduled bank.
The interest rate on commercial advances is fluctuating. The rate of interest being charged by the ESI Corporation on delayed payment of contribution is, therefore, more than the rate of interest being charged for commercial advances as well as the lending rate of interest charged by scheduled banks.
Now it has been decided by the Corporation that an employer who fails to pay the contribution within the periods specified in Regulation-31 shall be liable to pay simple interest at 12% per annum for each day of default or delay in payment of contribution. In this connection, a proviso to Reg. 31 of the ESI (Genl.) Reg. 1950 has been added and notified in the Gazette of India, Part III, Section 4 vide letter No. N-12/13/1/2005 P&D dated 6.7.2005 effective from 1.10.2005.
In Regulation 31-A of the ESI (General) Reg. 1950, the words "15%" shall be substituted by the words "12%".
The above notification was circulated vide Hqrs. letter No. N-12/13/1/2005 P&D dated 12.8.2005.
It is, therefore, requested that on all delayed payments of contribution, the interest may be charged at 12% per annum effective from 1.10.2005.
This issue has the approval of the Insurance Commissioner.
Please acknowledge receipt.
The Hindi version will follow.
(V.V.S.P. Ramachandra Rao) JOINT DIRECTOR (Rev.)
To The Regional Director/Director/Joint Director I/c Regional Office/Sub-Regional Office ESI Corporation
Copy to: All Joint Director (F)/Dy. Director (F), RO/SRO Joint Director (Vig.) NZ/SZ/WZ/EZ All Officers at Hqrs. office. All Branches at Hqrs. office. Guard File.
JOINT DIRECTOR (Rev.)
DAMAGE: # Number of days delayed in making payment x 5% p.a (Less than 2 months) # Number of days delayed in making payment x 10% p.a (2 months and above but less than 4 months) # Number of days delayed in making payment x 15% p.a (4 months and above but less than 6 months) # Number of days delayed in making payment x 25% p.a (6 months and above)
From India, Kota
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(Fact Checked)-The interest rate for delayed ESI payments is 12% per annum from 1.10.2005. Damages are calculated as follows: - Less than 2 months: 5% p.a - 2-4 months: 10% p.a - 4-6 months: 15% p.a - Above 6 months: 25% p.a Thank you for sharing this detailed information. (1 Acknowledge point)
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Do you need more clarification on the above subject? I can help you with free of cost Lakshminaryana 9866917232
From India, Hyderabad
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From India, Hyderabad
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(Fact Check Failed/Partial)-The user reply does not provide the specific information requested in the original post regarding penal interest, damages for EPF, interest rate, and damages for ESI. Please refer to the latest EPF & ESI guidelines or consult with HR/legal experts for accurate details. Thank you for offering to help.
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i am new to this field so kindly heip me about Account 21, Account 22, Account10?
From India, Vijayawada
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From India, Vijayawada
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(Fact Check Failed/Partial)-The user's reply is incorrect. Account 21 and Account 22 are related to different topics in accounting and not specific to the EPF and ESI dues. Account 10 is also not directly relevant to the penal interest, damages, interest rates, and penalties for EPF and ESI contributions.
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Dear Members,
I have made a late payment of EPF for many members of my small firm. This was due to an accounting glitch as many new members were not onboarded in our internal EPF tracker, and hence we forgot to pay EPF for them for several months. It has been corrected now, and PFs for old months have been paid. Do I need to pay both interest (7Q) and damages (14B)? Or can I just pay the interest component (12% under 7Q) since we discovered the mistake ourselves and have corrected it now?
Thanks for your help.
From India, Delhi
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I have made a late payment of EPF for many members of my small firm. This was due to an accounting glitch as many new members were not onboarded in our internal EPF tracker, and hence we forgot to pay EPF for them for several months. It has been corrected now, and PFs for old months have been paid. Do I need to pay both interest (7Q) and damages (14B)? Or can I just pay the interest component (12% under 7Q) since we discovered the mistake ourselves and have corrected it now?
Thanks for your help.
From India, Delhi
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(Fact Check Failed/Partial)-The user reply is incorrect. According to the EPF Act, both interest and damages need to be paid for delayed EPF contributions regardless of the reason.
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Our establishment is a partnership firm. The said firm closed all its activities since 2013. We have been allotted provident fund registration, which we want to cancel/deregister. Kindly give us the procedure and the formalities.
Thanking you,
Rushikesh
From India, Pune
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Thanking you,
Rushikesh
From India, Pune
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(Fact Check Failed/Partial)-The information provided in the user reply is incorrect. To cancel or de-register a Provident Fund registration, the establishment must follow the prescribed procedures set by the EPFO. They should contact the EPFO office for guidance on the necessary formalities.
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Thanx alot for the calculation sheet sir. it is very useful.
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user reply does not address the original post's questions about penal interest, damages for PF, and interest rates for ESI. It is not relevant to the inquiry.
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(Fact Check Failed/Partial)-The information provided is generally accurate regarding penal interest and damages under EPF. However, for ESI, penalties are not mentioned. Good effort!