Consequences for belated pf payment by employer

This query is : Open

Guest

Guest (Querist)

29 October 2013 Hi,

Someone may please see the following and IF POSSIBLE, give reply:

Query(s)

What is the interest rate or penalty or any charges, if PF payment is made after a period of one or two months from the due date.

Ans : ………………

Thanks in advance for your replies.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 October 2013
Penal Interest under section 7Q:
No.of days delayed in making payment x 12% p.a

Penal Damages under section 14B:

For Delay less than 2 months, penalty at 5% p.a.

For delay more than 2 months but less than 4 months, penalty at 10% p.a.

For delay more than 4 months but less than 6 months penalty at 15% p.a

For delay more than 6 months penalty at 25% p.a.

Guest

Guest (Querist)

30 October 2013 Thanks a lot.

If possible, please let me know, is there any sense in mentioning ‘WHETHER CHEQUE REALISED WITHIN 15 DAYS and answering YES’ even though the Assessee made belated payments for all the months in the year

Or the above stated expression shall apply only where the payments are made within due date.

(This requirement is for Clause 16(b) of TAR).

Ans : ……………… What is the correct practice?

Once again, thanks.

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