Esic & epf

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 Dear sir
we are service provide & we hv receive a contractor bill for the service, in which he is not registered under ESIC & EPF act . now we are deducting esic & epf of the contractor @6.75% & 25.61%. pls suggest what accounting entry to be passed inn the books

regards
rakesh sharma

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

06 December 2013 Principal employer is responsible for PF/ESI incase contractor not registered. you can make the normal PF payable entry with separate contract labours ledger and credit and discharge the liability

Hitendra Jain

Hitendra Jain (Expert)

06 December 2013 If Expenses can be recovered from the contractor then:

Contractor A/c Dr.
To PF Contribution Contractor
To PF Contribution Employer
To ESIC Contribution Contractor
To ESIC Contribution Employer
[Being Contribution to PF and ESIC provided for]

If Expenses can not at all recovered then:

Legal & Professional Expenses Dr.
To PF Contribution Contractor
To PF Contribution Employer
To ESIC Contribution Contractor
To ESIC Contribution Employer
[Being Statutory Expenses for Job Work / Contract Provided For]

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2013 thanks sir

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