Case Law Details
Creative Textile Mills Vs DCIT CPC (ITAT Mumbai)
PF contribution should be remitted within 15 days from close of month for which employees earned their salary
ITAT Mumbai clarifies that both employee and employer contributions to the Provident Fund must be remitted within 15 days from the close of the month in which employees earned their salary. The tribunal refers to a precedent from the Madras High Court, emphasizing that the term “every month” in the Provident Fund Scheme should be interpreted as the month in which wages were actually earned, i.e., the month of salary payable.
Facts- The appellant vide the present appeal has mainly contested that CIT(A) has erred in confirming the disallowance of Rs. 10,09,648/- being belated payment of PF/ ESIC u/s 36(1)(va) of the Income Tax Act.
It is submitted that as per the clause 38 of the Provident Fund Scheme, the employee’s contribution to the provident fund is required to be deposited 15 days from the close of every month. Also submitted that the term “every month” under the clause 38 of the employee’s provident fund scheme 1952 should be read as the month of payment of the salary, which is a month subsequent to the month for which salary was paid.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
