Section 104: Penalty for non-payment of cess within the specified time
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 104 — Governs penalty for non-payment of cess within the specified time and the rights, duties, powers or procedure expressly stated in this section. Key operative text: If any amount of cess payable by any employer under section 103 is not paid within the date specified in the order of assessment made under sub-section (2) of that section, it shall be deemed to be in arrears and the authority…
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- If any amount of cess payable by any employer under section 103 is not paid within the date specified in the order of assessment made under sub-section (2) of that section, it shall be deemed to be in arrears and the authority prescribed by the Central Government in this behalf may, after making such inquiry as it deems fit, impose on such employer a penalty not exceeding the amount of cess:
- Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.
Provisos, explanations & qualifications
- Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Employer, Authority / officer
Full statutory text — Section 104
104. Penalty for non-payment of cess within the specified time.— If any amount of cess payable by
any employer under section 103 is not paid within the date specified in the order of assessment made under
sub-section (2) of that section, it shall be deemed to be in arrears and the authority prescribed by the Central
Government in this behalf may, after making such inquiry as it deems fit, impose on such employer a
penalty not exceeding the amount of cess:
Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity
of being heard and if after such hearing the said authority is satisfied that the default was for any good and
sufficient reason, no penalty shall be imposed under this section.How to apply this provision
- Primary statutory test — If any amount of cess payable by any employer under section 103 is not paid within the date specified in the order of assessment made under sub-section (2) of that section, it shall be deemed to be in arrears and the authority prescribed by the Central Government in this behalf may, after making such inquiry as it deems fit, impose on such employer a penalty not exceeding the amount of cess:
- Additional operative limb — Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.
- Qualification / exception to test — Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.
- Central Rule mapping — 43. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Employer, Authority / officer.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
When an event triggers penalty for non-payment of cess within the specified time, record the trigger date, competent authority, prescribed rule/form, filing or decision step, service/acknowledgement and final outcome. A statutory point to test is: “If any amount of cess payable by any employer under section 103 is not paid within the date specified in the order of assessment made under sub-section (2) of that section, it shall be deemed to be in arrears and the authority prescribed by the Central Government in this behalf m” Also test the express qualification/proviso before concluding the result. Read the mapped Central Rule(s) 43.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 104
What does Section 104 of the Social Security Code cover?
Section 104 — Governs penalty for non-payment of cess within the specified time and the rights, duties, powers or procedure expressly stated in this section. Key operative text: If any amount of cess payable by any employer under section 103 is not paid within the date specified in the order of assessment made under sub-section (2) of that section, it shall be deemed to be in arrears and the authority…
What is the main legal requirement or power in Section 104?
The first operative clause identified from the official text is: “If any amount of cess payable by any employer under section 103 is not paid within the date specified in the order of assessment made under sub-section (2) of that section, it shall be deemed to be in arrears and the authority prescribed by the Central Government in this behalf may, after making such inquiry as it deems fit, impose on such employer a penalty not exceeding the amount of cess:” Read it with the remaining subsections and any proviso below.
Does Section 104 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.”
What time limit, percentage or amount appears in Section 104?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 104?
The current concordance maps Section 104 to Central Rule(s) 43.
Is Section 104 currently operative?
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Source & verification trail
Act: Code on Social Security, 2020 — official India Code PDF ↗
Central Rules: Social Security (Central) Rules, 2026 — G.S.R. 344(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.