epf not deposited for seven months

This query is : Resolved

CMA Abhay Kumar Sinha (Querist)
Follow

16 June 2009 R/Sir,

I am working in a partnership firm in U.P and the no. of employees in the Co.are more than 150 but Co. is only depositing epf for 20 employees and made it a practice that it will not be paid by the a/c payee chq of co. intsead the Co. is issuing self chq and from the self chq cash is withdrawn and a draft is made for epf.
Now the main problem is that the main accountant, who was supposed to take the self chq and deposit the same in the bank after making the draft for epf, has not deposited the same for last seven month and withdrawn all the cash and used it.

When this fraud is caught the company is asking me to look after it and find out the consequences and the remedy for the same.

I request you to please help me that what I have to do because me too is not an expert in EPF.

Thanks in Advance,

Abhay Sinha

CA CS CMA Srinivasan N

CA CS CMA Srinivasan N (Expert)
Follow

16 June 2009 Hello,
It is sad to note the Frauds that have happened..it is indeed a serious issue and should have been avoided by making a cheque payment. In any case now you have to remit the amount with
Interest Liability:

* For belated remittances of contributions, administrative / inspection charges interest at the rate of 12% on such remittances for the period of delay is to be remitted.

Damages:-

* For all the belated remittances of contribution and administration/inspection charges damages are also payable as penalty ranging from 17% to 37% p.a. depending upon delay.

You can refer this link for more info:
http://www.epfindia.com/for_employers.htm