• Damages and interest on belated remittances

Recently, PF office has sent us the summon regarding the payment of Interest and damages for belated remittances. They have also levied damages and interest on the arrears calculated (for the duration 2005 to 2008) on special allowance after 7A inquiry in 2012 which was not a regular payment. The same was paid immediately in 2012 the moment we received the order. But now because of this the duration for calculating the damages has been considered for 7 years instead of few days. 

Now the amount of damages has increased drastically. We would like to know if at all this damages and interest amount can be reduced. We would also like to know any recent judgement passed on the these kind of cases if any so that we can use that reference for further proceedings.

Looking forward for your guidance on the same.

Thanks & Regards,
Nikhil
Asked 2 years ago in Labour from Thane, Maharashtra
1. All the papers are required to be perused for advising properly,

2. After plain reading of the query, it appears that you shall have to pay the demanded damage and interest,

3. It is to be kept on mind that the interest amount is soring with the passage of time.
Krishna Kishore Ganguly
Advocate, Kolkata
13586 Answers
292 Consultations
5.0 on 5.0
Hello,
It would be difficult to provide appropriate advise without going through the documents .
Usually when it comes to non remittance of arrears the stance taken is stringent.
You need to take all records and the notice you have received  to an advocate and he should be able to advise on perusal of the documents.
S J Mathew
Advocate, Mumbai
1987 Answers
79 Consultations
5.0 on 5.0
Hello,
You have mentioned that you made an ad hoc payment towards the liability arising out of the 7A inquiry and the subsequent finding that the special allowance that formed part of CTC had to be taken into consideration while determining PF calculation/contribution of the employer.
The findings in 2012 would apply with retrospective effect and hence the liability would be binding in terms of damages and interest from the year 2005.
The best would be to engage a lawyer locally and negotiate with the PF office regarding waiver of penal interests any other exemptions that can be made in the current circumstances.
S J Mathew
Advocate, Mumbai
1987 Answers
79 Consultations
5.0 on 5.0
1. Your liability is from restrospective effect,

2. You shall have to make the said payment as demanded,

3. Make an apeal praying for waiver of interest.
Krishna Kishore Ganguly
Advocate, Kolkata
13586 Answers
292 Consultations
5.0 on 5.0

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