The Kolkata High Court, in its judgment dated May 28, 2001, in the case of Kanoi Paper & Industries Ltd. vs Asstt. Cit, has decided that the due date for the payment of EPF contribution is 15 days from the end of the month in which the salary is paid to the employees, not 15 days from the end of the month in which the wage was due.
For example, if the salary for March 2012 is paid on April 4, 2012, then the due date for filing the contribution is not April 15, but it is May 15.
The relevant portion of the judgment (attached in PDF) is pasted below:
"Clause 38 of the Employees' Provident Fund Scheme, 1952, fixes the time limit for making payment in respect of contribution to the provident fund to be 15 days from the close of the month concerned. However, the issue here is whether the "month" should be considered to be the month to which the wages relate or the month in which the actual disbursement of the wages is made. We are of the considered opinion that the expression "month" should mean here the month during which the wages/salary are actually disbursed irrespective of the month to which the same relates. If for some reason the payment of salary for a particular month is held up for a considerable period of time, it cannot be said that the employer would be liable to make payments in respect of the "employer's" as well as "employees'" contribution in respect of wages for such a period within 15 days from the close of the month to which the wages relate. On the other hand, in our view, the most appropriate interpretation would be that the employer would be at liberty to make payment of the contribution concerned within 15 days (subject, however, to the further grace period) from the end of the month during which the disbursement of the salary is actually made, and the contributions to the provident fund are thus generated, inasmuch as the provision relating to the disallowance of such contributions on account of delay is rather an artificial provision.
From India, Bangalore
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1For example, if the salary for March 2012 is paid on April 4, 2012, then the due date for filing the contribution is not April 15, but it is May 15.
The relevant portion of the judgment (attached in PDF) is pasted below:
"Clause 38 of the Employees' Provident Fund Scheme, 1952, fixes the time limit for making payment in respect of contribution to the provident fund to be 15 days from the close of the month concerned. However, the issue here is whether the "month" should be considered to be the month to which the wages relate or the month in which the actual disbursement of the wages is made. We are of the considered opinion that the expression "month" should mean here the month during which the wages/salary are actually disbursed irrespective of the month to which the same relates. If for some reason the payment of salary for a particular month is held up for a considerable period of time, it cannot be said that the employer would be liable to make payments in respect of the "employer's" as well as "employees'" contribution in respect of wages for such a period within 15 days from the close of the month to which the wages relate. On the other hand, in our view, the most appropriate interpretation would be that the employer would be at liberty to make payment of the contribution concerned within 15 days (subject, however, to the further grace period) from the end of the month during which the disbursement of the salary is actually made, and the contributions to the provident fund are thus generated, inasmuch as the provision relating to the disallowance of such contributions on account of delay is rather an artificial provision.
From India, Bangalore
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Dear All,
This information shared by Mr. Embar Thiru is truly very useful. Please do go through it, dear all. Thanks a lot for sharing the same, @ Embar Thiru. Keep sharing such useful information even in the future.
Regards to all.
Mody Harish M. BPP Coordinator, KGK Diamonds (I) Group, (+91 97236 96738.)
From India, Surat
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This information shared by Mr. Embar Thiru is truly very useful. Please do go through it, dear all. Thanks a lot for sharing the same, @ Embar Thiru. Keep sharing such useful information even in the future.
Regards to all.
Mody Harish M. BPP Coordinator, KGK Diamonds (I) Group, (+91 97236 96738.)
From India, Surat
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Thank you for sharing your valuable insights. However, I have one doubt regarding the judgment of May 2001: have there been any changes or notifications made under the PF Act since then? It is a common practice of our government that if any judgment goes against them, they tend to make changes in the act. Therefore, it is necessary to confirm whether this stance is still in existence and applicable.
Regards,
Pramod Thakar
From India, Pune
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Regards,
Pramod Thakar
From India, Pune
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Thanks for your valuable information. However, PF authorities are mentioning that if the March 2012 salary is paid on 4th April 2012, then the due date of EPF Contribution will be 15th of April 2012 and not 15th May 2012. This has been confirmed with the PF office in Pune. Hence, once again, confirm with the PF authorities.
From India, Pune
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From India, Pune
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Dear Mr. Ambar Thiru,
Good job on exercising judgment. I believe that it will not be used as per the EPF Act. The due month is the salary paid month, i.e., if we are issuing the salary for March 2012 in April 2012, then the Challan Payment last date is 15.04.2012 as per the EPF Act.
Regards,
Arihant
From India, Surat
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Good job on exercising judgment. I believe that it will not be used as per the EPF Act. The due month is the salary paid month, i.e., if we are issuing the salary for March 2012 in April 2012, then the Challan Payment last date is 15.04.2012 as per the EPF Act.
Regards,
Arihant
From India, Surat
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Mr. DRKumar is absolutely right. there is some miss understanding. If we are paying the Due of Mar 2012 on 15 July 2012 then what about Interest ?
From India, Surat
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From India, Surat
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Hi Arihant,
About your query and according PF CHAPTER V,PARA 32 A at page 45 If Where an employer makes default in the payment of any contribution in this behalf, may recover from the employer by way of penalty,
damages at the rates given below:—
Period of default Rate of damages (% of arrears per annum)
(a) Less than two months - 17 %
(b) Two months and above but less than four months - 22 %
(c) Four months and above but less than six months - 27 %
(d) Six months and above 37
according this rate we can not submit before or advance if concern Deptt. send to notice to submit than we can reply and submit.
also go through Attachment
HAVE A NICE DAY
From India, Calcutta
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About your query and according PF CHAPTER V,PARA 32 A at page 45 If Where an employer makes default in the payment of any contribution in this behalf, may recover from the employer by way of penalty,
damages at the rates given below:—
Period of default Rate of damages (% of arrears per annum)
(a) Less than two months - 17 %
(b) Two months and above but less than four months - 22 %
(c) Four months and above but less than six months - 27 %
(d) Six months and above 37
according this rate we can not submit before or advance if concern Deptt. send to notice to submit than we can reply and submit.
also go through Attachment
HAVE A NICE DAY
From India, Calcutta
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