Provident fund for contract labour

Venkateswara Rao (employee) (57 Points)

07 June 2008  

Hi

I need suggestion on  deduction of PF from contract labour payments.

our company used to get contract labour serivces from third party during  FY 2006-07 but the  labour provider ( third party) did not subscribed  PF for employees. we had accounted their payment directly to contract labour A/C.  there is no break up for these payment and paid  consoldated amount. total number of emplyees  were morthan 20 numbers. 

please suggest me , how to  overcome this problem to avoid penalty from PF Dept.