Mandatory ESIC & PF Deductions in contractor bill (for 3 days)? - CiteHR
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Manaer Hr & Admn, Prexus Health India
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If contractors (Book Binding) has worked inhouse jobs in our company for 3 days is it mandatory to deduct ESI & PF or if not what are the conditions ? Please suggest
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Dear Kumar,
Thanks & responding.
This is a book binder and the bill amount is Rs 8000/- only still do we have to deduct the ESIC & PF from the bill.
I mean the vendor is not that big (a book binder) & has not registered (ESIC & PF account) though we are registered with an ESIC & PF authorities.
Please suggest.
Thanks & Regards
dear why you want to show as he has worked inside the factory premises you can show it as this work was carried out at his own place outside your premises. regards js malik
Dear, It seem to be vendor, in such case no need of deducting Esi & Pf.. Esi & Pf applicable for only the Employees either tenure or permanent emp.
If it a Work Contract then Employer has to ensure whether PF & ESI requirements are met by the Contractor or not. (WCT is also deducted) If it is a purchase bill then no such requirement. Saurabh
You need not show as he has worked inside the factory area or premises. Instead of that you can show it as this work has been carried out at his own place. Or otherwise raise the bill above (per month bill) Rs. 10000/-. It will not attract ESI.
If you are keen to know whether you should deduct PF & ESIC for the job done by the contractor depends upon the nature of agreement.
Normally employer engaging any kind of contractor asks for both PF & ESIC Regn. Nos., because by chance if any mishappening happens or contractor does not pay his staffs all the benefits claimed from you, then the principal employer will be held responsible.
G. Venkat
If he is working inside the mill premises and raising the bill more than 20000/- with two persons. then PF ESI is compulsary or not???
Can we deduct ESI % 6.5% from his bills .
reply immdtly
if the vendor is working inside or outside the factory premises and raise the bill for jobwork which includes labour charges the ESIC will be deducted from the bill on the labour charges if job work is done without any labour charge in that case the esic will be deducted on 60% on the total bill amount which must be treated as labour charges.
thanks & regards,
sumit kumar saxena,
9899669071, 0120-4131277
The only statutory obligation of u is to deduct the required TDS from his bill and nothing else. PF and ESIC are deducted only for the employees directly employed by the employer and not for the conracted or oursourced work.

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