LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Epf deduction on works contract

pranshu goyal (article) (2 Points)

09 April 2017

sir as a local body we invite tenders for various development works in the city. and work is allotted to contractors they perform their function and engage temporary labour for construction, i want to know that as a principal employer (not having any direct relation with labour) are we liable to deduct EPF or to contribute for the same.. our contractor have EPF no on their name..plz suggest

Reply
Follow
Share

2 Replies

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 11 April 2017

DEAR SIR, ,,,,,,,,,,,, You are not liable to deducted epf form labor payment , but you should ask to your sub contractor epf deduction and deposit record and also take a copy of epf deposit challan and labor pay roll

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 April 2017

Principal employer has to ensure that contractor has paid contributions of EPF and ESI, and submitted the evidence for same alongwith their invoice,

in absence of proper evidence of compliance, principal employer is liable to cover the contract employees in their own establishment code and pay the contributions.