Ashwini.R
Hi Ramachandra,
Thank you so much for your clarifcation...
Can we negotiate with agency so much % service charge will be given to you and remaining amount has to pay security and housekeeping.
My question is can we take them on our roll without paying PF and EST and without PF And ESI Code.
Thanks & Regards,
Ashwini

From India, Bangalore
ramachandrak62
8

Dear Ashwini

1.Yes, you can negotiate based on their quotation (generally market rate is 10 to 12% on the overall bill amount) or as I said, you can fix a specific amount per labour/per day or per month instead of %. You have every right to negotiate with the contractor till you mutually agree.

2.If you feel you are paying extra service charge to contractor, definitely you can pay that amount to the security and house keeping personnel as a different component like washing allowance, conveyance, special allowance, etc.

3.You can definitely take them on your roll - but as I said, if the number of persons engaged by you are 10 for ESI & 20 for PF, you have to apply for PF and ESI codes and pay the contribution. You cannot avoid PF and ESI. Only if the number of employees are less than the numbers as above, you need not pay ESI and PF. Also once you take them on your rolls, then the contractor does not exist and the persons will be the direct employees of your company.

you may decide suitably based on the above.

Regards

k.Ramachandra

Bangalore


boss2966
1168

Dear Ashwini
Obviously we have to remit their PF & ESI directly as like other direct workers under us, which you have to add in their bill and deduct the same and we can remit with concerned commissionerate.
In addition if they are paying service tax, that too alongwith the profit fixed can be paid to them.
They have to submit the service tax challans every quarter after remittance. TDS part we have to remit and to that effect we have to give the TDS Certificate to the service provider.
With warm regards
S. Bhaskar
9099024667

From India, Kumbakonam
Ashwini.R
Hi Ramachandra.. Thank you very much for clarification..then we cant take them on our roll..we are above 10...only i can talk to Contractor. Regards, Ashwini.
From India, Bangalore
ramachandrak62
8

Dear Ashwini
I strongly recommend to leave those people under contractor's roll only and ensure that the due wages are paid to the concerned workers and ESI and PF is also paid by the contractor. Thereby, your burden of managingg the whole records, their salary, etc.etc. can be avoided.
As a principal employer, you can always supervise and enforce your authority on the contractor for all lapses.
Please go ahead with the above proposal and wish you all the best,
Regards
K.Ramachandra
Bangalore


Ashwini.R
HI Ramcahndra..
This question is already asked by one of our HR CITE Member..i have the same situation in our company...WE changed some terms and conditions in our appointment letter(V Imp). we are issuing the same appointment letter to our new joinees.For Old employee do we need to issue new appointment letter or circular???..It should be legaly bound.
Please clarify me....
Thanks & Regards
Ashwini

From India, Bangalore
ramachandrak62
8

Dear Ashwini,
If the revised terms and conditions are applicable to the old employees also, then You may communicate in two ways:
01.If you want to issue the letters individually, make a revised service rules/terms & conditions and issue to the old employees also. Make a covering letter saying that
"this is to inform you that the management has revised the existing service rules and the revised service rules/terms and conditions are attached herewith. The same will be in force with immediate effect. Please make note of the same. Also return an acknowledged copy of the same for having noted the contents" .
02. A general circular may also be made indicating the complete revised service rules/terms and conditions and circulate it to all old members and take their signature.
Both steps are OK.
Regards
K.Ramachandra
Bangalore


ramachandrak62
8

Dear Ashwini
Wish you and your family a very happy and prosperous new year.
Nice to hear that you could solve some issues based on the suggestions given.
Please do not hesitate to contact for any issues; you may make note of my mail id :
Take care
Regards
k.Ramachandra
Bangalore


Ashwini.R
Hi Ramachandra..
Very good Evening...
Hope Everything is going good on your End...
As you aware these FEB March and April months are fully busy in TAX...pay roll audit..year end closing accounts........
As i am new to this am getting many quries from our staff regarding tax...
CAn you please brief on this?
How this payroll Audit will done? proceedures for tax..?what are queries wiil arise from the staff(FAQ's)...
Please Please give some inputs to all...who are new to this...
Thank you soo much.
Ashwini

From India, Bangalore
ramachandrak62
8

Dear Ahwini and all

Good evening / good day - yes everything is going on well.

I will give some details from a general perspective:

1. Payroll audit is an internal exercise - generally done by Finance/Accounts department in co-ordination with HR&IR department.

2. Basically this is done to reset the internal system of attendance, payment of salaries, components of salaries, restructuring of salaries, etc.

3. The method/process of such an audit depends on each company and this is not a mandatory exercise.

Regarding Tax,

The Finance Department will normally initiate this process. Following would be generally done:

1. The finance department will make a format for collecting information from the company employees which will be called as declaration form or income-tax declaration form.

2. Such a form will have employees name and basic details and the investments, savings, details of LIC policies, amounts paid, donations, mutual funds, etc.etc. which have to be considered for tax calculations

3. A dead line is given to the employees to provide these details

4. Once these are submitted, Finance department, based on the salary details available with them, will compute the tax liability. Copies of Connected investments by employees have to be collected by Finance

5. It is a general practice that The finance Department in co-ordination with HR department will distribute this calculation to all its employees to check the tax liability and think of making any further investments/savings before March end or even earlier so that the tax liability can be reduced.

6. Once this is finalised, the finance departemnt will again compute the tax liability and deduct the tax payable, if any, and remit it to the concerned authorities

7. After this, Form 16 is generated and given to the employees

8. Based on this, the employees have to submit income-tax returns to IT department along with Form 16- mostly by end July (likely to be extended)

Staff will generally raise following questions;

1. Whether I have to pay tax - to refer the step-by-step tax calculation procedure (Finance can help) and then to arrive at the answer

2. Whether I can invest some more - same answer as above holds good

3. How to fill up IT form - the person who has read and understood can help

4. Where do I get IT return form ? - You may arrange to collect from the dept and distribute or personally they can collect or they can dowload from the department web site

5. Individually employees may ask varieties of questions - to deal with them appropriately as they come.

Hope this helped you to understand some details

Regards

K.Ramachandra

Bangalore


Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.