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Dear All members
Greetings of the day.....!!!
I want to keep on situation front of the Forum, which is under:-
i am hiring a JCB Machine for some days in a month for my one of site on rental basis, a bill was raised by the JCB Provider company now my question is that to all forum members :-
1. Should i deduct some amount from the bill in Lieu of statutory provisions , i.e. PF/ESI while bill was raised for rental only.
2. Is there any responsibility of my company as a principal employer to pay PF/ESI for that particular period .
kindly put you views
Thanks and Regards,
Rajesh

Hi,
Yes it is your company responsibility to deduct mandatory contribution towards compliance. PF would not be required to be deducted as this is a repair and maintenance work for short time and payment to be made on raised bill of vendor. However ESI need to be covered as any accident or injury require medical attention.
It is between you and the service providers's agreement that who will bear the cost . Anyone can do that but as a compliance your company would be held responsible

Thanks Harpreet, for your valuable input,
but it may be possible that vendor may be deducting the ESIC contribution of the Driver, so in this case ESIC deduction is not needed but we need to check it out as principal employer.
in other case if vendor is not deducting the ESIC contribution then we need to deduct the contribution from the vendor's Bill and deposit to ESIC.

This will depend on applicability these acts to your company.
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