30 September 2011
we are providing cargo handling services and for providing these services we hires contractors who further employ Workers and deduct the PF and ESI from their pay on monthlly basis and deposit the same to the Respective departments.
Now,A notice is received from the PF Deptt. for inconsistencies in PF deposit to our company stating that we are the principal employer of the workers not the contractor and the responsibility to deduct & depositof PF & ESI is on us. Is it Right ?
30 September 2011
Upon plain reading of the query, PF Deptt. stands correct being you are the principal employer and cannot absolve of the responsibility bestowed upon statutory. Now also check the T&C of contracts entered into in between you and these hired contractors to find the applicability in details.
CAclubindia
