Susanta Chakraborty ( ) 08 March 2011

PF deducted but not deposited

Dear advisors,

One private company has deducted pf and esi amount from salary and didn't deposit anything. After few month at the time of full and final settlement, they have returned the amount saying they are not deducting pf from salary. During the period the company has enjoyed deducted amount for more than 100 workers/staffs.

as we have email conversation with the company along with attachement of attandance cum salary sheet. Is it accepted as proof of violance?

they are also defaulter of depositing service tax.

the directors of the company settled to split into two companies naming almost same.

what steps to be taken?

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3 Replies

Kirti Kar Tripathi (lawyer) 08 March 2011

The employees can make complaint to PF. Authorities. Not depositing of R.F. contribution is an offence under the EPF Act and also Section 406 of I.P.C.. The make compliance is the legal responsibility of employer and also the provident fund department is responsible for getting compliance from employer. No employer can escape from its responsibility by saying that PF was not deducted. In case, PF department does not take action, the employee can go for mandamus against the PF department . The PF department can recover the amount with interest and penalty under section 7A of the Act.