EPF: ECR filing and payment of contribution

-

In the current scenario of lockdown announced by the Govt. to control the spread of COVID-19 pandemic and other disruptions, the businesses and enterprises are not able to function normally and are facing liquidity / cash crunch to pay their statutory dues even though they are retaining the employees on their rolls.

Keeping in view the above situation and to further ease the compliance procedure under EPF & MP Act, 1952, the filing of monthly Electronic-Challan cum Return (ECR) is separated from Payment of the statutory contributions reported in the ECR.

The ECR can now onwards be filed by an employer without the need of simultaneous payment of contributions and contributions may be paid later by the employer after filing the ECR.

Here is the FAQ on ECR filing and payment of EPF contribution as issued by the EPFO

Q1: What is an Electronic Return cum- challan (ECR)?

Ans: Every establishment covered under the EPF & MP Act, 1952 has to electronically file information after close of every wage regarding the number of employees employed, their UAN, EPF a/c number, their EPF/EPS wages, contributions due under the three Schemes on such wages and the administrative charges due, wage disbursal date, particulars of new employees joining and existing members leaving service and excluded employees. The ECR facility on unified portal allows the employer to perform the above important statutory duty. After creating the above information in the ECR, the employer can use the challan process for payment of the contributions & administrative charges declared by him.

Q2: What is the relief announced by the EPFO on the 30th of April, 2020 in regards to ECR process?

Ans: ECR can now onwards be created by any employer without the need of simultaneous payment of contributions which may be paid later by the employer after creating the ECR.

Q3: How the payment can be paid later on after filing ECR?

Ans: The ECR created by employer furnishing the statutory information will not lapse and shall always be available at future date for reference to complete the payment.

Q4: My establishment qualifies for PMGKY benefits but the date for filing ECR for March, 2020 is extended till 15.05.2020. If I file ECR now for March, 2020 then will I get time up to 15.05.2020 for payment?

Ans: Yes, after creating ECR for March, 2020 you may make payment on or before 15.05.2020. If you file ECR now, you can fill up declaration for PMGKY properly, edit any errors, if any, in declaration and you will avoid last minute rush.

Q5: If ECR for March, 2020 is filed now, whether PMGKY benefits would remain available to eligible establishment when payment is made later on?

Ans: Yes, filing of ECR now and paying later will help in securing the relief of payment employer’s and employee’s share of contributions, totaling 24% of wages, by Central Govt. in r/o of employees of your establishment earning monthly less than Rs.15000/- under PMGKY package Scheme.

Q6: What is the last date for filing ECR and making payment for wage month April, 2020 to avail benefits under PMGKY? Will there be any extension of date since lockdown is extended up to 17.05.2020?

Ans: Since filing of ECR for is now separated from payment process, the time for filing ECR for April, 2020 is on or before 15.05.2020 and dues may be remitted within the due date or within extended time, if any, as announced by the Central Govt. For establishments eligible for PMGKY benefits, the ECR for April, 2020 must be filed as soon as possible

Q7: Whether damages will be leviable for delayed deposits?

Ans: No damages will be leviable if deposits are made within the extended time declared by the Central Government.

Comments

Post a Comment

Popular posts from this blog

PF payment due dates for the FY 2020-21 for tax audit reporting

-
Image
PF payment due dates for the FY 2020-21 for the purpose of tax audit reporting While preparing Tax Audit Report in Form 3CD it is important to fill due date of payment to various Employees contribution fund and actual payment of the contribution. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va)" Most commonly reported funds under the clause are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI may result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2020-21 for quick reference  PF payment due dates for the FY 2020-21 Period Due date Day Extended date Reference Apr-20 15/05/2020 Friday                                -                           -   May-20 15/06/2020 Monday                  
Continue Reading

PF payment due dates for the FY 2021-22 for reporting u/s 36(1)(va)

-
Image
PF payment due dates for the FY 2021-22 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2021-22 for quick reference. PF payment due dates for the FY 2021-22 Period Due date Day
Continue Reading

Format of shorter notice consent for AGM (Annual General Meeting)

-
Image
Format of shorter notice consent for AGM (Annual General Meeting) Background The Companies Act mandates companies to issue a notice to members calling a general meeting at least 21 clear days before the date of the meeting. Sometimes, the matters in urgency require quick decision making and in such circumstances, the companies may go for calling general meetings at shorter notice. However, in case of the private limited companies the period can be less than 21 days as provided in the Articles of Association (AOA). Provision and Rule As per the provisions of Section 101 (1) of the Companies Act, 2013, every general meeting of a company may be called by giving not less than twenty-one days clear notice in writing or through electronic mode in such manner as provided under Rule 18 of Companies (Management and Administration) Rules 2014. What is Consent for shorter notice? It is permission obtained by the company from its shareholders, in advance, to call a general meeting at an earlier da
Continue Reading

PF payment due dates for the FY 2022-23 for reporting u/s 36(1)(va)

-
Image
PF payment due dates for the FY 2022-23 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2022-23 for quick reference. PF payment due dates for the FY 2022-23 Period Due Date Day Extended D
Continue Reading

Letter of Authority for Tax Practitioners (Income tax)

-
Image
Letter of Authority for Tax Practitioners (Income tax) LETTER OF AUTHORITY I/We ________________ Proprietor/Partner/Director of _______________________ hereby authorize Mr/Mrs/ CA __________________________ [   to appear, represent and settle on my/our behalf the Income tax assessment proceeding/s before the Income tax officer / Assistant/Dy. / Commissioner of Income tax or in appeal before the Appellate Assistant Commissioner of Income   Tax, Commissioner of Income tax (Appeal) or the Appellate tribunal or the Board of Direct taxes for the assessment year 20XX-XX and   [ to produce accounts and documents / statements and to receive on my/our behalf any notice or documents / statements issued in connection with the said proceedings ] or/and [ to apply for, obtain and receive refund order in respect of the said assessment (if any) and ] or/and [ to apply for copies of the Income tax assessment order, the Appellate order or the order of the Commissioner of I
Continue Reading