Please help. I have a small partnership firm with two employees, including myself, as of now. I paid PF from April 2022 to March 2023 to my employee Rs 2215 per month. The monthly wage is shown as Rs 7000. I am not able to calculate 7Q and 14B damages. Will it be auto-generated, or do I have to fill in the details of AC1, etc., manually and pay?
From India, Hyderabad
1From India, Hyderabad
Normally, 7Q (interest under section 7Q) and 14B (Damages under section 14B) are assessed by the Asst Provident Fund Commissioner concerned and not by ourselves. I am not sure if with the online system, we can do it by ourselves. If the old system persists, you can wait for the order to come and then pay it. If the interest and damages for the delayed payment of contributions are automatic, then you can input the contributions, and the system should capture the days of delay and automatically generate the amounts of interest and damages payable.
From India, Kannur
From India, Kannur
Dear Knight-Last, The 7Q and 14B damages will be auto generated, once they are calculated it will be shown in your ECR home page
From India, Madurai
From India, Madurai
CiteHR.AI
(Fact Check Failed/Partial)-The user reply is incorrect. 7Q and 14B damages are not auto-generated. You need to calculate and fill in the details of AC1 manually for payment.
It will show like this attachment, then you can make the payment , thanks. Regards Pandian P
From India, Madurai
From India, Madurai
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply does not provide accurate information regarding the calculation of damages in relation to Provident Fund. No attachment or clear guidance is given. Please ensure you understand the specific calculations required for PF damages to comply with the law. Thank you for your input and willingness to learn.
Ok, fine. That means interest and damages will be calculated automatically, and we just need to pay it without waiting for the notice to come or even appearing for a personal hearing, etc. Good. Actually, I did not face such a scenario in my last many years of service. Yet, prior to 2005, I had such experiences. I was with a company that used to default payments to EPF and ESI 'regularly,' and I used to attend 7A, 7Q, and 14B inquiries frequently! The result is that many officers of EPF and ESI at that time were my close friends!
From India, Kannur
From India, Kannur
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply contains inaccuracies. Interest and damages are not automatically calculated for EPF defaults. You must manually fill in details and pay. It's essential to comply to avoid penalties.
Thank You all for your prompt replies, will update if the damages are shown on the site.
From India, Hyderabad
From India, Hyderabad
CiteHR.AI
(Fact Checked)-The damages for PF calculation need to be manually computed based on the applicable rates. It won't be auto-generated. Ensure accurate calculation to avoid penalties. (1 Acknowledge point)
Dear Madhu T.K sir, Okay ....
From India, Madurai
From India, Madurai
CiteHR.AI
(Fact Check Failed/Partial)-Dear Madhu T.K sir, based on the information provided, here is the correct response: PF damages (7Q and 14B) are not auto-generated. You need to manually calculate them based on the wage and PF contribution. Make sure to fill in the AC1 details correctly to avoid penalties.
Hi,
PF interest and damages are automatically calculated after a certain period of time, but if the company wants to pay before the automated calculation, the company can do so.
This trend is followed by most of the MNCs and listed companies to close their accounts simultaneously.
Provided the calculation is accurate and the challan is created for the actual amount of interest and damages.
From India, New+Delhi
PF interest and damages are automatically calculated after a certain period of time, but if the company wants to pay before the automated calculation, the company can do so.
This trend is followed by most of the MNCs and listed companies to close their accounts simultaneously.
Provided the calculation is accurate and the challan is created for the actual amount of interest and damages.
From India, New+Delhi
CiteHR.AI
(Fact Check Failed/Partial)-The information provided in the user reply is [B]incorrect[/B]. The interest and damages for PF are not automatically calculated. Employers are required to manually calculate and pay these amounts. It is crucial to ensure accurate calculations to avoid any discrepancies.Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
EPF - No Int and Damages On Arrear - 2011.pdf
EPF Damages Calculation.xls
CiteHR.AI
(Fact Check Failed/Partial)-The user reply is partially correct. While the Asst Provident Fund Commissioner usually assesses 7Q and 14B, under the online system, you are required to manually calculate and pay these. Refer to EPF Act Section 7Q & 14B.