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Dear all,
I am working for a MD who has three companies on his name and having 80 employees all together. The address of all the companies are same and operating from one premises. There are no distribution of employees on these companies. Company takes contract of pest control in different parts of India. The situation are as under :-
(A) Proprietorship company - registered under shop & estb act around 1996 - No business on it - No bank account - No balance sheet - but PF is paying for 20 employees
(B) Partnership company (self & wife) - registered under shop & estb act on 01 Apr 2005 - all contract business on this - paying ESI for 22 employees
(C) Pvt Ltd company (self & wife) - registered under company act on 20 Oct 2014 - No business on it - No employees shown in this company
Please guide me on- (1) Is there any problem to pay PF from proprietorship co. having no business, no bank account etc.?
(2) Should we shift the PF employee to partnership company?
(3) How many employees we should show in Pvt Ltd company so that there will no any statutory compliance problems? How to distribute these 80 employees on these two companies (B) & (C)?
(4) PT has not paid for partner since registration of partnership company. She is also Director in Pvt Ltd company. How much PT should we paid now?
(5) How many employees should we shown in workman compensation?
Thanks & Regards
K S Patwal
patwal_ks@rediffmail.com
I am working for a MD who has three companies on his name and having 80 employees all together. The address of all the companies are same and operating from one premises. There are no distribution of employees on these companies. Company takes contract of pest control in different parts of India. The situation are as under :-
(A) Proprietorship company - registered under shop & estb act around 1996 - No business on it - No bank account - No balance sheet - but PF is paying for 20 employees
(B) Partnership company (self & wife) - registered under shop & estb act on 01 Apr 2005 - all contract business on this - paying ESI for 22 employees
(C) Pvt Ltd company (self & wife) - registered under company act on 20 Oct 2014 - No business on it - No employees shown in this company
Please guide me on- (1) Is there any problem to pay PF from proprietorship co. having no business, no bank account etc.?
(2) Should we shift the PF employee to partnership company?
(3) How many employees we should show in Pvt Ltd company so that there will no any statutory compliance problems? How to distribute these 80 employees on these two companies (B) & (C)?
(4) PT has not paid for partner since registration of partnership company. She is also Director in Pvt Ltd company. How much PT should we paid now?
(5) How many employees should we shown in workman compensation?
Thanks & Regards
K S Patwal
patwal_ks@rediffmail.com
Dear Mr. Patwal,
Please help share your contact number to understand your requirement and help you out.
We would like to introduce ourselves as "All Risk Management Solutions and Services (P) Limited - ARMSS" is a company promoted by a group of experienced professionals in Labour Law Compliance. ARMSS professionals are competent to handle any domestic enquiry / conciliation / IR / any court related affairs with respect to Labour Regulations and capable of giving Legal Opinions on Labour Laws.
Please help share your contact number to understand your requirement and help you out.
We would like to introduce ourselves as "All Risk Management Solutions and Services (P) Limited - ARMSS" is a company promoted by a group of experienced professionals in Labour Law Compliance. ARMSS professionals are competent to handle any domestic enquiry / conciliation / IR / any court related affairs with respect to Labour Regulations and capable of giving Legal Opinions on Labour Laws.
You seem to be sitting on a time bomb.
I do not know why your employer has created a complex structure. May be he was miss advised.
There are some unclear points. But I guess the final advice should only be given by a consultant who has studied all aspects in details.
I do not understand, how there can be a proprietorship business which has no business, no registration and no bank account. Such a company does not exist as per law.
So, how is the PF paid ? Which account is the cheque given (you are no longer allowed to give cash)
How is this recorded in the books of accounts.
Out of 80 employees, 20 are in first company, 22 in the second.
What about the balance ?
Where are salaries paid ?
As I see, there will definitely be a problem.
You can't pay salary out of one company and PF under another.
You may be :
- liable to pay PF again for these people
(And definitely for those who are in neither list)
- liable for profession tax
- liable for TDS and income tax on payment (assumed) to b made for emoloyees of one company working for another
I do not know why your employer has created a complex structure. May be he was miss advised.
There are some unclear points. But I guess the final advice should only be given by a consultant who has studied all aspects in details.
I do not understand, how there can be a proprietorship business which has no business, no registration and no bank account. Such a company does not exist as per law.
So, how is the PF paid ? Which account is the cheque given (you are no longer allowed to give cash)
How is this recorded in the books of accounts.
Out of 80 employees, 20 are in first company, 22 in the second.
What about the balance ?
Where are salaries paid ?
As I see, there will definitely be a problem.
You can't pay salary out of one company and PF under another.
You may be :
- liable to pay PF again for these people
(And definitely for those who are in neither list)
- liable for profession tax
- liable for TDS and income tax on payment (assumed) to b made for emoloyees of one company working for another
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#Listed labour laws Country-India balance sheet income tax statutory compliance pest control statutory compliances bank account company act tds and income tax risk management City-India-Pune
Statutory Compliances.xls
