PF contribution - tax vs. stat. audit

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Bhavesh Jain

Student

63 Points Posted on 20 September 2011

Hello friends,

I have a doubt regarding PF contribution. I ll give u one example pls let me know the correct answer.

I have gone for audit of a pvt. co. over there Employer deducted 1000rs from employee and employer contributed 1000rs. for pf contribution for the month of october(due date - 15th Nov.) but he actually deposited that amt. on 15th december. And will that contribution of 2000Rs. be allowed as deduction.?

how will you treat it in TAx & Stat. audit.?

Hope you understood what I am asking.

Thank You for reading and pls reply. :)

Replies (2)

ABHINANDAN JAIN

CA Student

571 Points Posted on 20 September 2011

I hv got some clues regarding same confusion , let me share with u...

follow the link given below:

/forum/consequence-of-deduction-of-pf-after-the-due-date-167902.asp

Prakash

Chartered Accountant

443 Points Posted on 21 September 2011

As per Sec 36(1)(va)Income Tax Act, if the employer is not deposited the amount collected from Employees (Employee Contribution), regarding PF, ESI ets, with the time limit specified in those respective acts then such amount will be added to his (Sec 2(24)(x)) and and he has to pay tax on the same

Regarding Employer contribution he should deposit the same befor the due date of filing the return of income u/s 139(1), otherwise it will be allowed in the year in which they actually paid. Sec 43B

Note Sec 43B not applicable to Employees contributions