What are the penal provisions in the EPF Act for non compliance of the provisions of Contribution both Employer and Employee ?
The rate of penal damages for belated payment of EPF dues is as follows:
If the period of default less than 2 months -5 %
If the period of default is 2 months above but less than 4 months – 10 %
If the period of default is 4 months above but less than 6 months – 15 %
If the period of default is 6 months above–25 %
The above is in addition to 12 % simple interest .
Apart from the above the further consequences for default are:
Attachment of Bank Accounts
Realization of dues from Debtors[ Garnishee Order]
Attachment of moveable and immovable properties.
Arrest and detention in Prison..
Action under section 406/409 of the Indian Penal Code[ Criminal Law] and Section 110 of Cr .P.C
Prosecution.Prosecution for Non payment of contributions normally end in favour of the Department.Mandatory punishment of detention in Prison is provided .
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