Epf & esic on contract labour bill
vatan
(Querist) 18 September 2011
This query is : Resolved
Dear all,
is it neccessary for labour contractor to show the ESIC & EPF amount separtely like service tax. Whether the billing is on daily wage rate or piece rate. If yes, kindly provide any notification or any other statutory document.
Raj Kumar Makkad
(Expert) 19 September 2011
EPF & MP Act, 1952 and ESIC Acts have applicability since the day of notifications and the procedure to maintain the accounts is duly mentioned in the relevant rules. Cash Book, Wage Register, ledger, Journal, PF Account Register, Attendance Register are basic registers to be maintained by employer may he be contractor or principal employer.
EPF & ESIC offices have nothing to do with the payment procedure whether it is on daily bases of monthly basis or piece rate bases. They are concerned only on monthly wages and statutory deductions thereto.
Sailesh Kumar Shah
(Expert) 19 September 2011
Showing ESIC and EPF separately or not, Its depends upon totally on terms and conditions of contract agreement.
Shastri J.K.
(Expert) 19 September 2011
i agree with Experts.
Guest
(Expert) 19 September 2011
Dear Vatan,
Irrespective of whether the contractor shows separately the element of ESIC and EPF in his bills for payment to him that may help him to keep his accountss properly, the question arises, whether he charges the amount on account of ESIC and EPF separately in addition to his contracted amount or as a part of the amount of contract?
The other question arises whether, as per the conditions of contract, is it the duty of the Principal Employer to reimburse the amount of ESIC and EPF to the contractor for contracted labour or not?
The third question arises, if the Principal Employer is responsible for contributing towards the ESIC and EPF, whether the contractor provides proof for remittance of the contribution to the EPFO to maintain accounts of the contract labour regularly, or else he is misappropriating the said amount?
Would you please like to clarify the above points.
