Epf by contractors employer.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2015 If a contractor is having 7 employees against a certain contract with PSU, is he liable to deduct EPF against the 7 employees as per PF act.

The numbers of employee is below the minimum requirement as per PF act. However, PSU is not releasing bills as EPF not deposited for mentioned 7 employees.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 July 2015 The establishment PSU is covered under PF. So irrespective of No. of employees employed by contractor he is liable to deduct EPF against 7 employees as per PF Act.

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2015 APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT '1952

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

1. Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.
2. Employing 20 or more persons .
3. Cinema Theatres employing 5 or more persons.

The 7 employees are under payroll of contractor who is performing a contract work with PSU. Why will he be liable to EPF even if he has below 20 employees. Please inform the notification/section which says "The contractor is liable for EPF if entered into contract with the establishment covered under PF" as mentioned in reply.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 July 2015 As per the above provisions the establishment is PSU not the contractor. PSU is the principle employer covered under PF. The contract workers doing work in the establishment of PSU.