S. Krishnamoorthy (Business) 26 November 2008

Date of payment of cheque for ESI and EPF

What Is The Date Of Payment-the day the cheque is presented or the day
cheque is honoured?

Which date will be taken as deposit of ESI and/or EPF , the day when
cheque is been deposited in bank for this purpose or the date it got cleared.
suppose on 15th June ,I deposited EPF through Cheque which got cleared on
20th June. Then as per IT Act what would be the date of submission for the
purpose of Scrutiny.
While the ESI and EPF go by the date as evidenced by the date stamp impression of thebank on the remittance challan, some of the AOs go by the date of clearance as the Rule of th section uses the word "credited" before due date and not presented/paid before due date. Is it the company's duty to see that the amount is credited before due date. Who is responsible for the delayed clearance?
Can this question be clarified?

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4 Replies

R Muralidharan (Accounts Consultant) 26 November 2008

Date of deposit should be construed. For instance in VAT returns the date of deposit is taken.

Pawan Mittal 27 November 2008

The day of rendering the cheque to the bank will be considered as date of payment (if the cheque is not dishonoured latter). You are not concerned with the presentation or passing the cheque from your account.

If you deposited the cheque on 15th June and got cleared on 20th June. The date of payment will be taken as 15th June.

If the concern bank has not presented the cheque within reasonable time, the bank will be held responsible for that.

It is well settled law. You can also refer Raja Mohan Raja Bahadur v/s CIT(1967)66ITR378(SC)