We are manufacturer of "Rakhi' we make 90% of Making work by Contractor with Job Card out side of Company but we deducting TDS on contractor under 194c head. But we are liable to to pay this contractor labours PF & ESI?

Glidor
632

if the establishment is covered under ESIC/EPF, then you have to select ESIC/EPF covered establishments for job work otherwise department will treat them as your worker

But they not only for our company they works for different company so we liable to pay ?

Dear Shreerakhi
You need o comply in following manner:
1) Your registration under factory
2) Your registration as Principal Employer under contract labour regulation and abolition act
3) Your PF code if engage more than 20 employees
4) Your ESIC code if you employ more than 10 employees
5) The contractor should obtain labour license
6) You should contribute towards PF and ESIC for your direct employees
7) Your contractor should pay wages, contribute PF and ESIC for his labours working for your establishment
8) Either you need to fic the piece rate calculating all financial burden (including PF and ESIC) or you can reimburse wage,PF and ESIC for actual days contractors labours have worked for your establishment.
9) You should ensure contractor pays over time, leave wages and bonus as per applicability and files required returns and maintains registers
Shailesh Parikh
99 98 97 10 65
Vadodara

From India, Mumbai
But they are no company they are individual person they made labour bill against on his job card our company we debit labour charges against this bill and after deducting TDS we clear this bill this process are wrong ?

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