I agree that in absence of details of material cost and labour cost in a particular bill (of a contractor), it will be construed as 25% as labour charge and the balance is material cost. This is pertaining to ESI alone.
Whereas there is no such system availble in PF.
You must understand one big difference between these two acts.
1) ESI is an insurance agency (remember Employees State INSURANCE Corporation) where they do not have to see from whom they are collecting the money. It is collected from you and spent to those who are in need. Therefore it is payable.
2) To avail the PF benefits one has to have the names of the beneficieres. The contractors employ their casual labours. They work for two days with him and vanish. He hires other labour again; he works for 10-15 days and goes elsewhere (Remember you need to submit Form-2 to enrol them as members; by the time you organize this, they are not there!).
If you deduct PF contribution from the contractor's bill, the amount collected or paid as PF contribution, has to necessarily to be paid back at a later date to the beneficiary for whom they collected. In our case, it is not possible to keep record of such employees.
Hence PF office does not and will not demand PF contribution from such bills.
Hope we are clear now!
18th July 2009 From India, Madras