Dear Sir,
We wanted to know that whether the hired LMV driver which is arranged by vehicle owner shall be applicable for deduction of PF or not. or should we ensure his deduction or not. AS We have hired one light vehicle from private party on monthly basis 12 hours daily engagement for our operation's day to day employee transport activities. for which we have issued him work order for 6 month also, with the terms that he will arrange the driver and his payment, and maintenance of vehicle.

From India, Bhubaneswar
Please provide the below information:
1. Does the contractor covered under the contract labour act and having a valid licensing in it?
2. In the absense of the point 1, you are responsible for the PF as well as ESI to deposit with the department.

From India, Jaipur
Sir,
He is a private party and as he had purchased a new vehicle for his personal use and we were in requirement of vehicle for our use. we hired it giving 6 month work order. and on monthly payment basis.
since the party is having only one manpower he will not be covered under Contractor labor act.
In this case also if we hire for just a 1 month purpose then should we as a principle employer deduct his pf or not.
Thanking you
Suraj Kumar Biswal

From India, Bhubaneswar
Suraj, Do you receive the invoices in proper formats i.e. whether these bears Service Tax regn no/PAN No/Name of the Firm etc. Regards, Anurag Jain
From India, Jaipur
Dear Sir,
We are receiving their monthly bills in there Letter Head, stating the No of Days run,KM Run and billed amount on the name of party, with their PAN no. for TDS Deduction.
As they are individual party(Private Vehicle) , they are not registered under service tax.
With regards,
Suraj Kumar Biswal

From India, Bhubaneswar
Suraj,

1. From the ESI point of view: Inspector may review the TA/DA expenses and question about the payment of ESI on such payment and raise the demand for the same.

2. Contractual services : While entering into long term contracts, please ensure that the employees on the roll of contractor are paid by the contractor and ESI/PF duely deducted / contributed and deposited by him. Preferably a copy of the awges payment by him shall be there for a record.

3. In the disclosed circumstances, appears that the PF/ESIC is not applicable to the contractor. As a matter of safety you must do the below:

a. Declaration may be taken from the contractor in this regard the applicability of PF/ESIC .

b. Undertaking of liabilities on occuring an accident at work or on duty.

c. You must force to the contractor to buy an accidental policy of enough sum assured for the driver.

d. Submit a copy of the policy to your office.

4. Income Tax: Please ensure that the TDS have been deducted under 194 C at the applicable rate where the over all payment is expected to exceeding Rs 20000.00 in a financial year.

5. Financial Audits: You must obtain the proper invoices from the taxi operator in the proper format. Mere to mention the charges on the letter head is not sufficient, it subjected to the objections of the auditors.

From India, Jaipur
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