Since 1990 our B Ed college is run by our society registered under societies registration act 1860 and 1950. now there is lack of admissions and hence finding it difficult to contribute to EPF. The college/society is a non profit organisation and is also registered under 80G of income tax act. there is no other source of income to the society/college except the tuition fees taken from the students as permitted by the Fees Regulatory Authority of the state. For the past 2-3 years the number of students taking admissions to the b ed course is drastically reduced. As a result the payments of the teachers have been reduced. Also the society is forced to give concession in fees along with three facility to pay the tuition fees in installments. Hence due to irregular submission of fees by the students the college is finding it difficult to give payments to its staff in time and hence there is delay in depositing EPF contributions in EPF office. Meanwhile due to delay payments of EPF contribution the EPF office is charging damages and interests which is proving to be additional burden on the college. What should i do? Please Help!
1) society should make efforts to reduce its staff and other expenses
2) if number of students have declined reduce the number of teachers
3) if there is delay in making EPF office woukd charge you interest for delayed payments
4) Reduction/Waiver of damages – considered only for Sick Industrial Companies having rehabilitation scheme sanctioned by BIFR.
EPFO says if a company is found to be non-compliant with its PF deposits, it will not only have to pay the dues but also pay an interest penalty on the same, depending on the number of days of delayed payment. If the delay if for less than two months, then the interest payable will be five per cent yearly above the amount payable for the number of days of delay in making payment. Similarly:
If two months and above but less than four months = 10 per cent a year
If four months and above but less than six months = 15 per cent a year
If six months and above = 25 per cent a year
1. Section 14 of the EPF Act deals with penalties and 32-A deals with damages. Where an employer makes default in the payment of any contribution to the provident fund or pension fund or insurance fund or makes default in the transfer of accumulations required to be transferred by him or makes default in the payment of any charges payable under the act or scheme may be recovered from the employer by way of penalty, damages at the following rates.
a. less than 2 months- 17% p.a 2. 2 months and above but less than 4 months- 22% p.a. 3. 4 months and above but less than 6 months- 27% p.a.4. 6 months and above -37% ( para 32A of EPF scheme)
2. So the only thing you may do is to ensure timely deposit of your EPF contribution to EPF office. There is just no way out.
The EPF and other statutory payments to the governmental authorities are to be paid as per the rules.
No sentimental or practical reasons can give you any exemptions in payment or levying interests for the late or delayed payment.
You may however make a representation in writing to waive the interest portion or the delayed payment owing to the prevailing circumstances and you can produce the copies of the receipts issued to substantiate your claim to draw sympathy.
The authorities may or may consider your request.
