PF And ESI Deduction - Pf Esic

Kaushik Nandi
Dear Community,
I have a case in hand where a vendor was deployed to complete maintenance and repair work in the office premises. The billing was consolidated without breakup of Man and machinery cost.
Now my query is:
1. Is it mandatory for the vendor to submit ESI and PF challans?
2. In case the vendor cannot provide the statutory documents and the company decides to submit the statutory dues on his behalf, what is the calculation basis in that case and what is the procedure?
Waiting for your valued inputs.
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Regards
Kaushik
tsivasankaran
Hi
It is mandatory.
If it is maintenance work, normally the authorities take the entire amount as wages. There are guidelines availble . It could be reduced to 25% of the Bill amount if one can prove that the contract included cost of materials as well. But if you have provided materials, it could be argued and brought down to 50 to 60%
Siva
U.K.Singh
Being a principal employer it is mandatory on your part to get all the labour laws implemented by the so called Vendor. Aworkman drawing less pay than Rs.10,000/- (including all payments except bonus,)it is compulsory that his ESI is deducted
Kaushik Nandi
Dear All,
Thank you so much for the input... but my query still seems unsolved.
First, the bill does not have the breakup of man and machinery. hence I have no idea what is the total wages that needs to be accounted for.
Second, if I take the whole bill amount and deduct 25%, what is the percentage of the total amount deducted to be divided for PF and ESI!!!
Finally, Once the amount is divided, and we decide to deposit the amount to the respective departments, what is the procedure!!
Waiting for your valuable inputs.
Regards
Kaushik
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