Dear Sir,
I need your input regarding the calculation of construction cost versus wages (Gross Salary) cost percentage. This information is required for the PF audit.
The auditor has mentioned that out of the total Purchase Order (PO), gross wages/salary should be 25%.
Kindly advise.
From India , Mumbai
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I need your input regarding the calculation of construction cost versus wages (Gross Salary) cost percentage. This information is required for the PF audit.
The auditor has mentioned that out of the total Purchase Order (PO), gross wages/salary should be 25%.
Kindly advise.
From India , Mumbai
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So far, I can remember there is one guideline from the Apex court that in the absence of bifurcation of the invoice, 25% of the total invoice should be considered as labor cost in the case of Civil Construction. Accordingly, PF & ESIC compliance has to be done.
The auditor is correct.
It is always better for any cost if the invoice is bifurcated into material cost, labor cost, and Supervisory cost (Profit) to avoid any complications.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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409The auditor is correct.
It is always better for any cost if the invoice is bifurcated into material cost, labor cost, and Supervisory cost (Profit) to avoid any complications.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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You may consult DSR (Delhi Schedule of Rates) which gives the rate of construction for various types of civil construction. This is a standard book and could be quoted if it is serving your purpose.
From India, Mumbai
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From India, Mumbai
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Dear Sir,
What would be the scenario in the following cases?
Is 25% of Gross Salary considered as PF wages?
Gross Salary includes both daily wage workers and permanent employees.
For permanent employees, PF contribution is limited to the PF wage ceiling of Rs. 15,000, regardless of their higher basic salary.
Apart from the PF members, there are also PF-exempt employees who are part of the project team such as consultants.
Kindly suggest.
Regards,
Pradeep
From India , Mumbai
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What would be the scenario in the following cases?
Is 25% of Gross Salary considered as PF wages?
Gross Salary includes both daily wage workers and permanent employees.
For permanent employees, PF contribution is limited to the PF wage ceiling of Rs. 15,000, regardless of their higher basic salary.
Apart from the PF members, there are also PF-exempt employees who are part of the project team such as consultants.
Kindly suggest.
Regards,
Pradeep
From India , Mumbai
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25% is the consolidated amount and should be considered as PF gross wages. The restriction on PF contribution may be up to 15k per month. There may also be excluded employees.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
From India, New Delhi
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