PF DEDUCTION
PBS KUMAR
(Querist) 22 April 2008
This query is : Resolved
Dear Sir,
In our 'factory' we are having 3 contractors for various job works. They are having PF / ESI numbers for their own. They promptly deducting the statutory PF/ESI. But recently one more contractor engaged by our company for small civil works. They are engaged daily labour seven numbers, they are not having any PF/ESI numbers. They approched PF authorities they said minimum 20 mambers required. At that time what we have to do. Usually most of the companies they engaged small job works to small contractors. If such cases what is roll of the employer.
Regards,
PBS KUMAR
Manish Singh
(Expert) 22 April 2008
You dont need to panic about the same, since the number of your contractor's employees are less than 20, he doesnt come under the mandatory provisions of esi/pf.
PBS KUMAR
(Querist) 22 April 2008
Dear Manish Singh ji,
Thanks for reply, but the contractors name has appeared in the accounts ledgers. The PF authorities are incisting to pay the PF for those workmen in companies account, since the contractor has no number OR the principla employer has to take a sub code for the contractors. What we have to do ?
Regards,
PBS KUMAR
ysharma4u
(Expert) 23 April 2008
Yes in this case liability comes to principal employer. you have to deduct ESI and PF from there salaries and deposit to your companies own ESI , EPF account. open an new account in your books as Casual Labour Salary payable Account and disburse the salary from there.
If your contractors are agree then collect the employer contribution part from total billing amount. according to contact labour act you have certain other liabilities which you have to follow under provisions of Contact labour act.
Even those contractor already registered under EPF & ESIC you have to keep there deduction record at your end for the purpose of ESI, EPF, & lobur inspection.
I suggest you to go for a suitable contractor who can fulfill all the requirement according to the labour act.
