Dear Sir,
Our company has been depositing the PF and ESIC contributions of the contractor's workmen under the company code. Can you please advise whether it has any legal ramifications in the future?
Regards,
Hilary Joseph
From India, Jaipur
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Our company has been depositing the PF and ESIC contributions of the contractor's workmen under the company code. Can you please advise whether it has any legal ramifications in the future?
Regards,
Hilary Joseph
From India, Jaipur
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You depositing in company code. menace your are completing all compliance and need to comply in future if any grievances going to raise.
From India, Mumbai
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19From India, Mumbai
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Sir, The company has been following this practice right from inception and have joined only in Sep 2022 and found this as alarming.
From India, Jaipur
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From India, Jaipur
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You are adopting the wrong practice, which may have far-reaching consequences for your company. It is not a matter of the company making contributions. If your company wants to make contributions, it can do so as a gesture towards the contract workmen of your company. However, you should have directed your contractor to obtain a code for himself, and contributions should have been remitted through his code number, and not the company's.
Now, if some anomaly occurs on the PF and/or ESI fronts in the future, your company will have to face the music.
From India, Aizawl
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Now, if some anomaly occurs on the PF and/or ESI fronts in the future, your company will have to face the music.
From India, Aizawl
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The basic question in all such matters is whether the contract arrangement is genuine or not. Where the contractor has obtained a license, PF & ESI registration, recruited the labor, supervises them, and pays them, the arrangement would appear genuine. The ultimate question is whose labor it is, the contractor's or of the PE? So payment of PF & ESI contribution directly by the PE goes against the above principles, though it is not decisive.
From India, Mumbai
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From India, Mumbai
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Statutory Compliance of a Industrial or Commercial Unit.xls
Statutory-compl iance.pdf
Statutory Compliance.zip