Hello
A newly set-up company, due to purely administrative/operational reasons, could not deposit the dues in time for the first six months. After these months the dues have been paid religiously on time till date. The company also happens to be a respected brand in other parts of India but had to face this unfortunate penalty of interest & damages (under PF act) while setting up its base in Maharashtra with around 800 to 900 employees.
1) Is there any provision in PF Act or Scheme which provides for a waiver or any case law for companies who are established having genuine intention to pay on time but could not do so because of initial set-up issues (operational or administrative).
2) Who has the authority to waive off such interest or damages (whether partially or in totality) under the PF Act/Scheme.
Thanks in advance for your response
From India, Aurangabad
14A newly set-up company, due to purely administrative/operational reasons, could not deposit the dues in time for the first six months. After these months the dues have been paid religiously on time till date. The company also happens to be a respected brand in other parts of India but had to face this unfortunate penalty of interest & damages (under PF act) while setting up its base in Maharashtra with around 800 to 900 employees.
1) Is there any provision in PF Act or Scheme which provides for a waiver or any case law for companies who are established having genuine intention to pay on time but could not do so because of initial set-up issues (operational or administrative).
2) Who has the authority to waive off such interest or damages (whether partially or in totality) under the PF Act/Scheme.
Thanks in advance for your response
From India, Aurangabad
"WAIVER" is the discretionary power vested with the authorities which will be exercised when defaulting party submits proof to the satisfaction of the authorities. Aggrieved can approach the appropriate forum for remedy.
From India, Tiruchchirappalli
From India, Tiruchchirappalli
If waver was allOwed I think every defaulted would go for it. You didn’t pay on time, there is no excuse. Administrative default is your fault right ?
From India, Mumbai
From India, Mumbai
Dear Sunnydays,
There is no such waive of pf subscription or interest, damage etc.
Ist submitt the PF dues by fill up different challans as applicable.
Then in your case you have to pay 37% interest on the due amount if it is more than 6 months.
Please refer para 38 of Employees Provident Fund Act in this regard.
Ist you pay the intial dues as applicable.
Later on they will ask to pay interest and damgae.
Warm regards,
From India, Mumbai
There is no such waive of pf subscription or interest, damage etc.
Ist submitt the PF dues by fill up different challans as applicable.
Then in your case you have to pay 37% interest on the due amount if it is more than 6 months.
Please refer para 38 of Employees Provident Fund Act in this regard.
Ist you pay the intial dues as applicable.
Later on they will ask to pay interest and damgae.
Warm regards,
From India, Mumbai
Interest and Damages may be waived by the CPFC or Any other person Authorisesd by him for conducting inquiry. As the recovery provision provides that before issuing recovery notice or assessment, the Employer should be given a reasonable opportunity to be heard.
If in veiw of Inquiry Officer, you have an reason ans justifiable cause for not submitting Contribution in time, in that case the amount can be waived partly or wholely depending on fact & circumstances.
There is number of factors which has to taken in to consideration before leving damages or interest viz time of payment, amount of damages, delay of payment etc.
There are number of Court Case where the court has waived off the amount of damages or interest in appropriate cases.
Regards
If in veiw of Inquiry Officer, you have an reason ans justifiable cause for not submitting Contribution in time, in that case the amount can be waived partly or wholely depending on fact & circumstances.
There is number of factors which has to taken in to consideration before leving damages or interest viz time of payment, amount of damages, delay of payment etc.
There are number of Court Case where the court has waived off the amount of damages or interest in appropriate cases.
Regards
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PF Interest & Damages Calculation.xls
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