Payment of 14B/7Q dues only through Auto generated challans

The Employee’s Provident Fund Organisation (EPFO) vide a circular dated 4th February 2020 has introduced a new functionality to remove the issue regarding payment of auto calculated dues under Section 14B/7Q challans where the employer chose miscellaneous Forms over 14B/7Q challans to pay the dues.

 Taking initiative for going paperless, EPFO launched functionality for calculation and payment of damages under Section 14B and interest under Section 7Q of the Employees’ Provident Funds and Miscellaneous Provident Act, 1952 against belated remittances. Section 7Q deals with imposition of interest of 12% p.a. when an employer fails to deposit the EPF contribution before its deadline; and Section 14B deals with recovery of the amount due from the employer by Central Provident Fund Commissioner or such other officer by way of penalty.

Under the new functionality the system generates auto challan and the employer can come to know the 14B and 7Q dues immediately and can make the payment by generating the challan. But in some cases, instead of making payment against the auto calculated 14B/7Q, the employer deposits the amount through miscellaneous challans. In such cases, the auto calculated amount under Section 14B/7Q remain open in the online system showing the employer’s contribution is pending.

To solve this issue, a provision to stop the auto calculated 14B/7Q with miscellaneous challans has been provided in the frontface of the employer’s portal. Under this new functionality, a Dealing Assistant (Damages) can select the auto calculated 14B/7Q entry and adjust the amount with miscellaneous challans. Then it will move to Section Supervisor (Damages) for approval. After approval, the auto calculated entry will be removed from pending list on employer’s portal as the amount is already deposited and adjusted as payment against 14B/7Q.

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