Crazy Duke (Student) (86 Points)
25 May 2011
Hi,..
we are doing the audit of an electricity company. they have paid their epf due for some months late i.e, after 15th. could someone pls pls tell me how to compute interest on that. I mean, how does epfo compute interest, daily,monthly, yearly etc.,,any details would be helpful. thanks in advance.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 25 May 2011
Remittance of contribution
It is the duty of employer to remit the contribution deducted to the government before 15th of the following month.
Employer interest Liability
Employers are liable to pay @ 12% interest on late payment of EPF, EPS, EDLI, Administrative charges
Damage liability
An employer is remitting EPF, EPS, EDLI, and Admin charges late shall be liable to pay damages as penalty ranging from 17% to 37% depending up on delay.
CAclubindia
