Here there is a Canteen in a factory run by contractor, there are 4 employees of this contractors.
This factory is however covered with ESI & PF clauses, but this contractor has not get himself regsitered under ESI PF.
when told that now the Company has to deduct ESI PF for this contractor on bill, the company said that bill is raised for only food bill charges.
however the company has suggested the contractor to get himself regsitered for PF ESI.
Is this approach right by the company? since there is no detail on basic or gross earning what amount should then company deduct ESi PF.? Further what are the consequences to be faced by the company as the Contractot has not registered neither company. is there any penalty,fine,imprisonment for Company.? Also is there any time limit within which registration should happen by Contractor?
11 January 2011
See,it is responsibility of principal contractor to Deduct PF & Pay it to govt treasury,If the contractor/sub-contractor not getting himself registered under PF/ESIC,
FIRST, We must have to see whether any contract has been done between canteen holder & company or not!!!!
as you r using word " contractor" i'm assuming that contract has been done, so... even if the contractor raising bill of food bill charges... company must have to pay PF of the said peoples
CAclubindia
