can any one tell me that in an Organisation, if there is a catering supply(ie, food is coming from restaurant(outside) to the Organisation) to the employees on a daily basis and for the same the caterer is paid on monthly basis. Like to know whether for that payment we have to deduct PF or ESI? pls.
regards
rajesh
From India, Pondicherry
1regards
rajesh
From India, Pondicherry
Hi Richar
If your organisation falls under ESI and you have a registered code No. of ESI, then you have to deduct ESI from the payment you are making to the Caterer, as he is non other than a contractor supplying food to your employees, hence he is also involved with the business of the organisation.
Mohan Rao
Manager HR
From India, Visakhapatnam
If your organisation falls under ESI and you have a registered code No. of ESI, then you have to deduct ESI from the payment you are making to the Caterer, as he is non other than a contractor supplying food to your employees, hence he is also involved with the business of the organisation.
Mohan Rao
Manager HR
From India, Visakhapatnam
Hi - Hope i am not too late to inform you that PF & ESI both are not applicable in the above case. TDS will be deducted from total amount payable to vendor or caterer or contractor. He does not fall under the categoty of "Employee"
Regards,
Taru
From India, New Delhi
Regards,
Taru
From India, New Delhi
Why do you pay ESI and EPF for any payment made to a supplier?. You purchase food from a restaurant and in return the restaurant raises bill. Then there is no question of any ESI or PF deduction. But at the same time, if the restaurant is run exclusively for for you and your employees, then the relationship between you and the restaurant people will change from purchaser and vendor to principal employer and contractor and if so, you will have to deduct ESI and PF from any consideration flowing from you to the contractor.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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