Labour laws_ pf,esi and pt query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2013 Dear All,

We have Trust registered under the Trust act where PF, PT and ESI is applicable from Jan'13 on wards.

Due to the some administrative issues i could not get registered under the respective months in Jan'13. However in June'13 i got registrations codes under three Acts.
Now I figured out Principal amount, Interest cost and Damage charges as per the provisions under PF, PT and ESI acts.

My question is can I pay the Interest and Damage charges along with the principal amount to buy the piece of mind i.e don't want to receive any further notices.

Is it possible to pay the Interest and Damage changes without raising the any demand by the Department?

Regards

Ki$hor B

Ki$hor B (Expert)
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06 June 2013 Voluntary payment by an entity is practiced by several corporates, so you may pay both the Intt. & damage charges without any demand being raised.

Am not sure what you mean by 'damage charges'.

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2013 Thanks for you mail.

Damage changes refers Sec 14B PF Act if delay in payment is more than 6 months damage changes would be @25% of amount due.

In above my question is how do I pay Interest and Damage charges with out demand raise by the department . I.e for making payment of PF, ESI , PT generally I will fill the challan and paid.
Is there any separate challen should i fill or any other administrative formalities should i complete?

Regards

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 Handling overdue payments for Provident Fund (PF), Employees' State Insurance (ESI), and Professional Tax (PT) requires careful attention to the administrative and legal procedures outlined under each act. Here's a step-by-step approach to address your situation:

### 1. **Paying Principal, Interest, and Damage Charges**

**PF Act**:

- **Principal Amount**: This is the actual amount of PF contributions due.
- **Interest**: This is the interest accrued on overdue contributions.
- **Damage Charges**: Under Section 14B of the EPF Act, the employer can be penalized for delayed payments. The penalty is usually a percentage of the unpaid amount, depending on the delay period.

**ESI Act**:

- **Principal Amount**: This is the actual amount of ESI contributions due.
- **Interest**: This is the interest accrued on overdue contributions.
- **Damages**: Under Section 85B, the ESI Corporation may impose damages for delayed payments.

**Professional Tax**:

- **Principal Amount**: This is the actual amount of PT due.
- **Interest and Penalties**: Vary by state, usually specified under the relevant state’s Professional Tax Act.

### 2. **Process for Paying Interest and Damages**

#### **Without Receiving a Demand Notice:**

1. **Contact the Authorities**:
- **PF**: Contact the Regional Provident Fund Commissioner (RPFC) office to inform them of the delay and express your intention to make full payment including interest and damage charges. They may provide specific instructions or forms to fill out.
- **ESI**: Contact the local ESI office or regional office to discuss your situation. They may provide details on how to settle the overdue amounts along with interest and damages.
- **PT**: Contact the local municipal or state tax office to understand the procedure for paying interest and penalties.

2. **Prepare a Detailed Payment Statement**:
- Prepare a comprehensive statement that includes the principal amount, interest, and damage charges (if applicable) for each period of delay. This helps in ensuring clarity and correctness of payment.

3. **Payment Mode**:
- **PF & ESI**: Generally, payments are made through challans (Form 5 for PF, Form 12 for ESI). However, for settling overdue amounts, you may need to use specific forms or procedures. Consult with the respective department to confirm the correct process.
- **PT**: Payment is typically made through a challan as specified by the state’s tax department. Confirm with the local authority if there are special procedures for overdue payments.

4. **Submit a Written Request**:
- Draft a letter addressed to the respective authorities stating your intention to clear the overdue payments and requesting a waiver or reduction of penalties if applicable. Attach the detailed statement with the payment.

5. **Follow-Up**:
- After making the payment, keep all receipts and acknowledgment documents. Follow up with the authorities to ensure that the payments are recorded and that no further notices are issued.

### 3. **Administrative Formalities**

1. **For PF**:
- Use the EPF Portal to submit payments and any forms required for overdue contributions.
- **Form 5**: For payment details.
- **Form 10C/19**: If there is a need to adjust or confirm the payment.

2. **For ESI**:
- Use the ESIC Portal for making payments.
- **Form 5**: For contributions and details of payment.

3. **For PT**:
- Follow the state-specific guidelines for making payments and penalties.

### Summary:

- **Contact the Authorities**: Reach out to the relevant PF, ESI, and PT offices to confirm the process and avoid further notices.
- **Prepare Detailed Payment Statements**: Ensure accuracy in calculating principal, interest, and damages.
- **Use Appropriate Forms**: Follow the specified procedures and forms for making overdue payments.
- **Keep Records**: Maintain detailed records of payments and communications with authorities.

If there are specific forms or additional administrative steps required, the respective authorities will guide you through them. Engaging a compliance consultant or legal advisor may also help streamline the process and ensure full compliance.