My friend is a contractor of labor and has 9 laborers. He paid provident fund (P.F.) for his laborers under another registered contractor's P.F. code. Please help me, is this a common practice?
If a contractor engages 20 or more workers in any establishment, he has to apply for a PF code number and obtain the number to start contributions in respect of his employees to PF authorities.
It is advisable to obtain an independent code number rather than remitting contributions through another contractor's PF code (which is not a correct practice).
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