Late deposit of pf and esi is allowable expenses

Dear Sir

we deposit the esi and pf after the due date as per pf and esi rule, in fy 2018-19, now at the time of audit can we claim said amount as our business expenses or not...

thnx in anticipation..
Tarun
Replies (4)
No you cannot claim. Even if you claim you have to give dates of deposit of each and every deposit. When your itr will be assessed it will be added to your income.
Thanx a lot Sir, for your precious advice

1. Contribution of PF and ESI is allowed as deduction u/s 36(1)(v), provided the same is paid before the due date specified under the relevant act. 
2. For both PF and ESI there will be employers contribution and as well as an employee contribution. Employers' contributions will be allowed as expenses if the same is paid before the due date for furnishing the ROI. 
3. However, with respect to an employee's contribution, the same shall be allowed as deductions only if it is paid before the due date specified under the relevant PF and ESI act. Even if the same is paid after that due date, it will not be allowed as deduction u/s 36(1)(va). 
4. The above decision was supported by Ms. Unifac Management Services (India) Vs DCIT (Madras High Court) as on 23.10.2018. 
5. Hence, PF and ESI relating to Employee's contribution will not be allowed as deduction if the same is paid after the due date specified under the relevant PF and ESI act. 
Please correct me if the above solution has an alternative view. 

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