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Payment withheld in demand for epf challans

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Bipin

42 Points Posted on 10 December 2014

I am an accounts executive in the IT Recruitment firm.

We invoice our clients for the consultancy services of our employees on monthly basis.

A client recently withheld 2 payments out of 3 invoices raised for October 2014. The payment withheld on excuse of EPF/ ESIC paid challans be submitted for the previous month. They cleared the payment for the one invoice without the same.

Is there any law or rule as such that a vendor needs to provide EPF / ESIC challans payment confirmation to clear the invoices for the services it rendered?

Please someone guide in this regard!!

Regards,

Bips

Replies (1)

Roshan Thomas

C.E.O

356 Points Posted on 24 December 2014

The nature of your business is not clear but as per PF rules. if your employees are working on site i.e at the location of your client then your client has the responsibility to ensure PF/ESI dues are paid on all employees workings within their premises. So your employees will also be covered

In such case you will have to submit proof of remitance of PF/ESI on your employees otherwise they will have to pay