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Ref: https://www.citehr.com/353434-new-pf-wages-2.html

Dear friends,

Please enlighten me if there is any liability/responsibility of the Principal Employer under the EPF & MP Act in the following situations:

1. A contractor engaged in the P.E.'s Factory/Mines premises has obtained a separate PF Code for his contract establishment and fails to deposit PF contributions (both employees' & employer's) for certain months and thereafter absconds from the work site.

2. A contractor having fewer than 20 employees does not cover its employees under the EPF & MP Act by obtaining a separate PF Code.

With regards,
S.K. Hota

From India, Calcutta
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The responsibility of statutory payment by the principal employer arises if anyone has not contributed. In such cases, the principal employer will pay the contribution and can deduct it from the respective contractor's bills.

P. Xavier Raj

From India, Pondicherry
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Dear Mr. Xavier,

Kindly help if there is any liability or responsibility for statutory compliance in the case of a subcontractor (working under us) employed by us, the contractor. Our clients have been requesting PF details of our subcontractor as well.

Additionally, I would like to understand what a Provident Fund Recovery statement is. Kindly assist me in clarifying the above.

Thank you in advance.

From India, Mumbai
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I have already informed you that the principal employer is responsible for all statutory payments. If there are any outstanding or unpaid payments during an inspection, the statutory authorities will recover the dues from the Principal Employer.

I understand your second question.

P. Xavier Raj

From India, Pondicherry
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Dear Mr. Xavier,

Thank you for your reply. My second question is related to PF recovery statement. One of our clients has asked us to fill in an annexure (attached). We have been providing all statutory details to our clients on a regular monthly basis. However, they have requested details to be provided in this specific format as well.

Kindly, let me know about this annexure as well.

Thank you in advance.

From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pdf ANNEXTURE 2.pdf (306.4 KB, 228 views)

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I think your client is required to have the consolidated PF contribution statement for contractors. I don't know whether you have remitted it or not. If you have the details, you may discuss it with your management and forward.

P. Xavier Raj

From India, Pondicherry
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We do maintain a PF register that captures all the data mentioned in the annexure and have been providing the same on a monthly basis to the client. Although we are providing the PF register and challans on a monthly basis, they have asked us to provide and fill up another annexure.
From India, Mumbai
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It is an additional job for you apart from the regular. I will give a small suggestion for you. In your further report, you may highlight the contract workers in the statement so that they can be easily identified. The highlighted names are under the contract role. According to their requirements, all the details available in your statement can be used for their formulation directly from their side.

OK

P. Xavier Raj

From India, Pondicherry
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