Hello everybody,
Can anybody help me? Please tell me what is the penalty for late submission of PF ECR. What is the process of penalty, how much penalty, and after how many days will the penalty start? I will be thankful for your help.
From India, Delhi
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12Can anybody help me? Please tell me what is the penalty for late submission of PF ECR. What is the process of penalty, how much penalty, and after how many days will the penalty start? I will be thankful for your help.
From India, Delhi
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Dear Loveneet, Greetings for the day! Can you please tell me, how much days late submitted the monthly PF ECR at your end AND reasons for the same?
From India, Sirohi
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From India, Sirohi
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Dear Loveneet,
I hope this could help you.
Under Section 14 of the PF Act deals with penalties and 32-A deals with damages. Where an employer makes default in the payment of any contribution to the provident fund or pension fund or insurance fund, or makes default in the transfer of accumulations required to be transferred by him, or makes default in the payment of any charges payable under the act or scheme, may be recovered from the employer by way of penalty, damages at the following rates:
1. Less than 2 months - 17% p.a
2. 2 months and above but less than 4 months - 22% p.a.
3. 4 months and above but less than 6 months - 27% p.a.
4. 6 months and above - 37% (para 32A of EPF scheme)
OFFENCES AND PENALTIES are specified in para 14 of the EPF Act. If an employer fails to pay contribution, submit returns, etc., he shall be punishable with imprisonment which may extend to one year or with a fine which may extend to Rs. 4000/ under the provident fund scheme and the insurance scheme Rs. 5000/ under the pension scheme or with both if he deducts or attempts to deduct from the wages or other remuneration of the member the whole or any part of the employer's contribution, or he fails or refuses to submit any return, statement, or other document required by this scheme or submits a false return, statement, or other document or makes a false declaration, or he obstructs any inspector or other official appointed under this act or this scheme in discharge of his duties or fails to produce any record for inspection by such inspector or other official or he is guilty of contravention of or non-compliance with any other requirement of this scheme (para 76 of EPF, para 42 of EPS, para 29 of EDLI scheme).
Hence, to sum up, the employer is both liable for damages and penalties if he contravenes the law. Hope I have cleared your doubt.
Thanks & Regards,
Ankita
Executive HR
SNGL
From India, Patna
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I hope this could help you.
Under Section 14 of the PF Act deals with penalties and 32-A deals with damages. Where an employer makes default in the payment of any contribution to the provident fund or pension fund or insurance fund, or makes default in the transfer of accumulations required to be transferred by him, or makes default in the payment of any charges payable under the act or scheme, may be recovered from the employer by way of penalty, damages at the following rates:
1. Less than 2 months - 17% p.a
2. 2 months and above but less than 4 months - 22% p.a.
3. 4 months and above but less than 6 months - 27% p.a.
4. 6 months and above - 37% (para 32A of EPF scheme)
OFFENCES AND PENALTIES are specified in para 14 of the EPF Act. If an employer fails to pay contribution, submit returns, etc., he shall be punishable with imprisonment which may extend to one year or with a fine which may extend to Rs. 4000/ under the provident fund scheme and the insurance scheme Rs. 5000/ under the pension scheme or with both if he deducts or attempts to deduct from the wages or other remuneration of the member the whole or any part of the employer's contribution, or he fails or refuses to submit any return, statement, or other document required by this scheme or submits a false return, statement, or other document or makes a false declaration, or he obstructs any inspector or other official appointed under this act or this scheme in discharge of his duties or fails to produce any record for inspection by such inspector or other official or he is guilty of contravention of or non-compliance with any other requirement of this scheme (para 76 of EPF, para 42 of EPS, para 29 of EDLI scheme).
Hence, to sum up, the employer is both liable for damages and penalties if he contravenes the law. Hope I have cleared your doubt.
Thanks & Regards,
Ankita
Executive HR
SNGL
From India, Patna
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Hi RAm Sir,
Thanks for your concern and updating my knowledge.
For 0 — 2 months delay - @ 5 % p.a.
For 2 — 4 months delay - @10 % p.a.
For 4 — 6 months delay - @ 15 % p.a.
For delay above 6 months - @ 25 % p.a.
(subject to a maximum of 100%)
Please correct if i am wrong..........
Regards
Ankita
From India, Patna
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Thanks for your concern and updating my knowledge.
For 0 — 2 months delay - @ 5 % p.a.
For 2 — 4 months delay - @10 % p.a.
For 4 — 6 months delay - @ 15 % p.a.
For delay above 6 months - @ 25 % p.a.
(subject to a maximum of 100%)
Please correct if i am wrong..........
Regards
Ankita
From India, Patna
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Dear Loveneet
For 0 — 2 months delay - @ 5 % p.a.
For 2 — 4 months delay - @10 % p.a.
For 4 — 6 months delay - @ 15 % p.a.
For 6— 8 months delay - @ 20 % p.a.
For delay above 6 months - @ 25 % p.a.
Along with 12 % per anuunm intrest
and PF challan last date is 15 of every month and if it is not cleared till 15th of the same u will get 5 days grace period
if it cleared on 20 then nothing will be penality and intrest
if it clear on 21th of the same then 6 days penality and intrest will be charged at the time of inspection after inspection u will get a notice from PF Department for paying this amount
From India, Faridabad
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For 0 — 2 months delay - @ 5 % p.a.
For 2 — 4 months delay - @10 % p.a.
For 4 — 6 months delay - @ 15 % p.a.
For 6— 8 months delay - @ 20 % p.a.
For delay above 6 months - @ 25 % p.a.
Along with 12 % per anuunm intrest
and PF challan last date is 15 of every month and if it is not cleared till 15th of the same u will get 5 days grace period
if it cleared on 20 then nothing will be penality and intrest
if it clear on 21th of the same then 6 days penality and intrest will be charged at the time of inspection after inspection u will get a notice from PF Department for paying this amount
From India, Faridabad
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CBI trapped an EPF enforcement officer based on my complaint in 2012. In 2013, the EPF squad inspected our school and revised our returns from 2004, submitting dues amounting to 6 lakhs. We paid the due amount. Currently, the damages and penalties are around 6.75 lakhs.
The maximum rate of damages calculated is at 49% for 6 years and 37% for the following 5 years. In this case, can we request a revision in the 7A order and adjust the damages amount?
From India, Jagtial
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The maximum rate of damages calculated is at 49% for 6 years and 37% for the following 5 years. In this case, can we request a revision in the 7A order and adjust the damages amount?
From India, Jagtial
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Dear friends,
Has anyone challenged the damages under Section 14 of the EPF Act?
Are we liable for penalties and damages if the amount exceeds 150%?
Is there a limit to the total amount of penalties and damages, such as 100%, 200%, and so on?
From India, Jagtial
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Has anyone challenged the damages under Section 14 of the EPF Act?
Are we liable for penalties and damages if the amount exceeds 150%?
Is there a limit to the total amount of penalties and damages, such as 100%, 200%, and so on?
From India, Jagtial
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Dear Sir, If we will submitted pf contribution more than 5 days upto 20th of month, how much penalty will be imposed by pf department. can u guide us regarding this issue ?
From India, Jalalpur
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From India, Jalalpur
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Please tell me that what is the penalty for late submission of PF ECR, & esic
From India, Ahmedabad
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From India, Ahmedabad
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