EPFO Labour & Material Charges consideration

Hi,

I would want to know on the EPFO 7A enquiry regarding the Labour Charges for Statutory consideration & Material consideration.

Since the financials is clubbed with Material & labour charges & named as Labour Charges.

Kindly let me know your thoughts.\

Thanks & Regards,
Rama Narayana Sharma

What is "Labour Charges for Statutory consideration & Material consideration"? Is it that you have carried out some work and the total amount paid to the contractor contains an element for labour and the rest for materials? And the EPF Enforcement Officer who has conducted an inspection in your office has demanded payment of contribution on the amount paid to the contractor? And that an enquiry under section 7A of the EPF & MP Act has been posted and you want to defend the enquiry?

Normally, if you have documentary evidences to show that out of the total amount paid to the contractor, this much of amount pertains to labour, then that amount only will qualify to PF and ESI contributions. Please confirm.