Provident Fund

[krishna besta]

 If provident fund was not paid with in the due date ie 15th of subsequent month. What are the consequences accoriding to PF act & Income Tax Act ?

If the PF amount paid after the due date is this allowable Expenditure of Employer Contribution for Companies.

[ajay singh]

Apex Court in the case of CIT v. Alom Extrusions Ltd. (2009 (11) TMI 27 - SUPREME COURT) where it has been held that if the employers contribute the ESI and EPF even when made after the due date under the aforesaid Acts but before filing of the return, section 43B is attracted and the said contribution is liable to be deducted as expenditure

[Vivek Harsh]

 Plain reading of Sec 43B makes it clear that if Employer contribution is paid on or before the due date of filing of retun under 139(1) the same shall be allowed in the year in which expenditure is incurred.

 Very recently Supreme Court in case of Vinay Cement(2007 (3) TMI 346 - Supreme Court of India) for Employees Contribution held, the same shall all be allowed if  paid on or before the due date of filing of retun under 139(1) the same shall be allowed in the year in which expenditure is incurred.

AI Summary

Supreme Court Rulings: Provident Fund Contributions Deductible If Paid Before Tax Return Filing Date Under Section 43B. A query was raised regarding the consequences under the Provident Fund Act and Income Tax Act if provident fund contributions are not paid by the due date. Two responses referenced Supreme Court rulings. One cited the case of CIT v. Alom Extrusions Ltd., stating that employer contributions to ESI and EPF, even if paid after the due date but before filing the return, are deductible as expenditure under section 43B. Another response referenced the Vinay Cement case, affirming that contributions paid by the return filing due date under section 139(1) are allowable in the year the expenditure is incurred.