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 10 years ago in Labour
We had a 7A inquiry in the year 2012 in which PF officials had raised liability on special allowance which was the part of the CTC from 2005-2008. We came to know about the same after the inspection in 2012, where in we were told that special allowance would also be considered for PF calculation. Based on that we made the adhoc payment against the liability. Earlier we received the payment notice which was of X amount and when we visited PF office with all the necessary documents recently we were again asked to give employee wise details of that X amount to credit that amount in their respective account which should have been done earlier when we paid that X amount in 2012. Our point is that we have never defaulted in paying the regular payments. Now we have received the revised order stating the amount has increased from X to 3 times as they have considered the effect of that adhoc payment from 2005 which was not a regular payment.
We would like to know whether such kind of payments/ arrears (Liability on special allowance identified in 2012) would also attract damages & interest from 2005 OR 2012.
Through some sources we came to know that recently there was judgement passed on such case where in the damages were levied on such adhoc payments when identified and not from the beginning.
Please guide us on the same & help with some citations.
Asked 10 years ago