Monday, October 12, 2009

Late submission of PF Return

QUESTION---- If an organisation submits the monthly as well as yearly return late, thus is there any penalty for this? Kindly be specific both in case of monthly as well as yearly late submission of PF return.

ANSWER-- Section 14 of the pf Act deals with penalties and 32-A deals with damages.

where an employer 1. makes default in the payment of any contribution to the provident fund or pension fund or insurance fund or, 2. makes default in the transfer of accumulations required to be transferred by him or,3. makes default in the payment of any charges payable under the act or scheme may be recovered from the employer b;y 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.

in that if an employer fails to pay contribution, submit returnsetc.,he shall be punishable with imprisonment which may extend to one year or with fine which may extend to rs.4000/ under the provident fund scheme and the insurance scheme rs. 5000/ under pension scheme or with both 1. he deducts or attempts to deduct from the wages or other remuneration of the member the whole or any part of the employers 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 obstrucs any inspector or other official appointed under this act or this scheme in discharge of this 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 theis scheme. ( para 76 of EPF,para 42 of EPS, para 29 of edli scheme)

hence to sumup the employer is both liable for damages and penalities if he contravenes the law.

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