As ultimate responsibility lies on the principal employer, you have to produce the proofs for statutory remittances of your contractor. We have received notices to pay the dues for the defaulted contractors which amounts upto 10 crores. proof of payment to the contractor doesn't matters. you have to produce the proof of statutory remittances for those contract employees. Before clearing the bills of the contractors you shall collect the copy of the documents such as Attendance, Wage Register, PF challan, PF ECR, ESI Challan , ESI contribution list, Bonus register, Half Yearly Returns by the contractor etc.
The problem is some contractors will work for one year and they will windup, after few years we are liable to answer the authorities hence at that time you cannot trace those contractors.
It is advised to collect the aforesaid documents to safeguard the company. Call us for further clarification if any.
From India, Madurai
Statutory compliance is very vast subject matter in terms of various labour laws/Acts/ Rules prevailing and practiced on PAN India basis.
It's very difficult to give a very logical & convincing reply on your queries raised by you.
However, if you really intend to protect the interest of your organisation by law abiding Company , we will appreciate your response to guide you in best way towards core statutory compliances.
You may reach to me on mail cell number. +91 9004588487.
From India, Pune
I also agree with Mr. Madangopalswamy, in that before releasing each and every payment against bill of the contractor concerned, retain say 30-40% (equivalent to statutory deductions and a bit more). Release such retention only when the contractor shows the proof of correct deduction and payment (challans) / returns and other statutory compliances to your satisfaction; in future. For the past transactions seek legal help & see if the contractors' payment can be withheld even now.
A S Bhat
From India, Pune
From India, Delhi