Is It Right for L&T Construction to Deduct PF After Adding GST to My Bill?

I am a subcontractor in L&T Construction Mumbai, supplying labor for construction work. They are deducting PF amount from my bill after adding GST amount. I want to know if this is correct.

Bill Amount: 327004.00
GST 18%: 58860.00
Total: 385685.00
Deduction PF: 29604.00

Ask them for a calculation or reconciliation sheet as the data submitted does not match any EPF rates.

Bill amount probably consists of labor, food, shelter, profit, etc. The total PF deduction is 29,604/-, which is supposed to be 25% of the labor cost (Employer-12% + Employee-12% + Admin charges-1%). Therefore, the total labor cost is 29,604 x 4 = 1,18,416/-. The labor cost is again 36% of the total bill amount, which is common for construction work.

Hope this satisfies your query.

Thanks & Regards,

S K Bandyopadhyay (Howrah, WB)

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