EPF LATE FEE RELATED

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This discussion addresses how to record journal entries for late Employees' Provident Fund (EPF) fees. Experts suggest booking excess payments as interest, either directly in the payment entry or via a separate journal entry. The advice also touches upon ensuring these interest charges are disallowed when computing taxable income.

Mahenthiran

Mahenthiran (Querist)
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20 February 2020 DEAR EXPERTS,

HOW CAN I PUT THE JOURNAL ENTRY FOR EPF LATE FEE.

Gokul Sharma

Gokul Sharma (Expert)
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20 February 2020 DR INT CHARGES A/C AND IT SHOULD BE DISALLOWED UNDER COMPUTATION OF INCOME TAX.

Eswar Reddy S

Eswar Reddy S (Expert)
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29 February 2020 @Mathenthiran: I think you have asked from accounting point of view.. Hope EPF liability was created along with the salary.So you may book the excess payment as interest in the payment entry.. EPF Payable /EPF Liability A/c Dr Interest A/c Dr To Bank Else Alternatively: Pass journal entry for interest portion: Interest A/c Dr To EPF Payable/EPF Liability EPF liability to Bank If interest portion is not accounted properly then there will be debit balance in EPF liability ledger

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