Clause 20(b) - Section 36(1)(va)

Clause 20(b) - Section 36(1)(va)

  
What is it  ?

Disallowance u/s 36(1)(va) on payment of PF/ESIC after the due date under the respective Labour Law.
Disallowance under section 36(1)(va) on account to late deposit of employees contribution of provident fund was justified as employees contribution retained its character as income by virtue of section 2(24)(x) unless the conditions spelt by Explanation to section 36(1)(va) were satisfied i.e. depositing such amount received or deducted from the employee on or before the due date, else will be deemed income for the assesse. 

Clause 20(b) - Section 36(1)(va) – Step -1 

1. The user can add ledgers of employees PF and ESI collected . In the first year the screen will be blank and user can add the required ledgers and classify them as “ PF collected” or “ ESI Collected” 
2. The system will display the closing balance of the ledgers added.
 

Clause 20(b) - Section 36(1)(va) – Step -2 

1. Step-2  lists all the vouchers that are available in the ledgers that are added in step -1 
2. The user cannot add/ delete ledgers here and only the narration column can be edited on this screen.
 

Clause 20(b) - Section 36(1)(va) – Step -3

Step – (3) The user should upload challan excel sheet for PF & ESI in the excel that can be downloaded and the user should fill in the details as required and upload.

Clause 20(b) - Section 36(1)(va) – Step -4

1. Step – (4) lists the user reports in a detailed format indicating if there are any differences in the amount collected vs Amount paid and if the expenses is allowed/ dis-allowed . 
2. There are 2 tables, one each for PF and ESI Collected/ Paid and the user can download the reports in the detailed format (as shown on the screen ) and as per form 3CD requirements

.