Contractor A, who is the principal contractor, has outsourced the job to Sub-Contractor B. Form 5 is in the name of Contractor A, and the labor license has been obtained by Contractor A. However, PF deduction is being carried out by Sub-Contractor B under his PF code. Is this valid as per the law?
From India, Faridabad
From India, Faridabad
It is not illegal for Sub-Contractor B to deposit PF contributions of his employees into his account as he is recognized as a separate establishment for PF purposes. Indeed, it will save a lot of later inconvenience when the PF Inspector insists on verification of the compliance status of Sub-Contractor B. Form V is under the CLRA Act and has no connection to PF compliance.
From India, Mumbai
From India, Mumbai
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