A company ABC Ltd has received a bill raised by a Tailor named XYZ Tailors who was appointed by issue of a Work Order to make uniforms for the employees of the company. The company has supplied the necessary cloth and measurements. The Tailor prepared the uniforms at its own place and after delivering the uniforms, raised the bill. XYZ Tailors didn't charge any service tax as it is not registered. XYZ Tailors is not registered in PF & ESI as well.
Now, is it mandatory for ABC Ltd to deduct Provident Fund as well as ESI (both employer & employees' contributions) from the bill raised by XYZ Tailors and deposit the same with EPFO & ESIC respectively ? Kindly advice on the right step to be taken.
CAclubindia
