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Discussion > Accounts > Others >

Provident fund for contract labour

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[ Scorecard : 57]
Posted On 07 June 2008 at 12:03 Report Abuse


I need suggestion on  deduction of PF from contract labour payments.

our company used to get contract labour serivces from third party during  FY 2006-07 but the  labour provider ( third party) did not subscribed  PF for employees. we had accounted their payment directly to contract labour A/C.  there is no break up for these payment and paid  consoldated amount. total number of emplyees  were morthan 20 numbers. 

please suggest me , how to  overcome this problem to avoid penalty from PF Dept.

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[ Scorecard : 108]
Posted On 07 June 2008 at 15:16

As Liability to deduct PF becomes of the company that employs contract labour  as per the labour law.



Total thanks : 1 times

Kamlesh Thakwani
Chartered Accountant

[ Scorecard : 30]
Posted On 12 June 2008 at 10:07

Primary responsibility is of principle employer means in our company we are ensuring PF payment by contractor then we give N.O.C. to them and release the payment

Venkateswara Rao

[ Scorecard : 57]
Posted On 16 June 2008 at 19:54

Thank you very much kamlesh


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[ Scorecard : 36]
Posted On 31 August 2008 at 12:10

what if the labour contractor has less than 20 employees, are we still as a principal employer liable for pf

Posted On 06 December 2008 at 18:10

dear friends,

can i get below information:

1 Is pf & esi applicable on truck loading/unloading bill ?

2 Is service tax applicable on principle employer's share (PF & ESI)?

3 Is contract labour exemption possible (pf & esi)

Warm Regards

Purushottam Jangir




[ Scorecard : 32]
Posted On 26 January 2009 at 11:56


I need suggestion on  deduction of PF/ESIC on Contract (Civil/Site/Project Work) work.

our company is basicaly registered at nagpur and done the business activity in all over india (Construction work/Project Work) with 10 to 15 workers . some companies (Recently in Delhi)  deny to pay any amount (the amount is appx 55lacs) against work done by firm due to non regisration of PF/ESIC . 

please suggest me , how to  overcome this problem to solve this problem.


[ Scorecard : 40]
Posted On 18 March 2010 at 21:00

what if contractor have only  less than 20 employees

There are 7 Replies to this message

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