25 March 2009
Hello, In corporate so many cases i found that the company hire a housekeeper,sweeper,gardner etc.for maintainance of office but that employee company not shows in a payroll/musteroll which result company avoid P.F @ ESI liability and show that employee some time in office expenses and some time in Repair & Maint..Please advice me in light of above cases.and consequences of the above case.
25 March 2009
When a company hires house keeper, sweeper and gardner then those people are in pay roll of the vendor company and hire charges paid by company to vendor company. In case vendor company doesn show those people in its pay roll and avoids PF and ESI huge amount of penality can be charged by the authority. Showing employee salary as office expenses or other head also creates same liability for the company. Its like fradulent activities to avoid PF and ESI.