hi... This laxman, from Goa, Mine is partnership firm, started its avctivities 10 years back that from 1998 -99. we are into development of land and sale of plots. We engaged contractor to develop the plots.The manpower on muster was 21 in jan 2007.
Can some help me ( Please state rules/Act or attached rule or Act) in answer my following querries.
1. Is firm like us which is into development of land is covered under pf Act.
2. If yes, since when ?
3. The employees on firm muster roll had reached 20 in jan. 2007. the pf inspector talks about the contractors employees. The system was to issue work order to the contractors and on receipt of bills payments were done. No record of contractors employees was collected/maintained. Under such circumstances, were we required to deduct towards pf from the contractos bills.This deductions were not done earlier because the pf was not applicabe to contructions company. is it correct ? if yes please forward me that part of law.
Yours answers would be of great help ....
thanks
laxman
From India, Chicalim
2Can some help me ( Please state rules/Act or attached rule or Act) in answer my following querries.
1. Is firm like us which is into development of land is covered under pf Act.
2. If yes, since when ?
3. The employees on firm muster roll had reached 20 in jan. 2007. the pf inspector talks about the contractors employees. The system was to issue work order to the contractors and on receipt of bills payments were done. No record of contractors employees was collected/maintained. Under such circumstances, were we required to deduct towards pf from the contractos bills.This deductions were not done earlier because the pf was not applicabe to contructions company. is it correct ? if yes please forward me that part of law.
Yours answers would be of great help ....
thanks
laxman
From India, Chicalim
Hi Laxman,
Your business establishment would be registered under shops & Commercial Establishments Act. So your firm would be liable for PF coverage. Secondly construcion companies are indeed coverd under the EPF Act.
may be The payments made by you to these contractors would be on a measurement basis and not employee wise. But the contractor would have paid the wages on daily wages and pocketed the difference as his margin.
In such cases though labour component is involved, the labourers would not be identifiable for you to take into consideration for PF coverage.
So what you should do to pacify the authorities is to demand a muster roll for the work done through the contractors and pay pf on such wages.
regards
From India, Bangalore
Your business establishment would be registered under shops & Commercial Establishments Act. So your firm would be liable for PF coverage. Secondly construcion companies are indeed coverd under the EPF Act.
may be The payments made by you to these contractors would be on a measurement basis and not employee wise. But the contractor would have paid the wages on daily wages and pocketed the difference as his margin.
In such cases though labour component is involved, the labourers would not be identifiable for you to take into consideration for PF coverage.
So what you should do to pacify the authorities is to demand a muster roll for the work done through the contractors and pay pf on such wages.
regards
From India, Bangalore
Sir,
we started the company in 1998, we had 20 employees on muster as on 1st january2007. we made payment towards pf contribution of our employees from day one and today we do not know the number of contractors employees if reaching to gether number 20 during any of the previous periodprior to jan.2007 . what should be the base for pf calculation. The pf inspector talks big thing like sealing the office incase we do not give the imformation of contractors employees.He is already given the copies of balance sheet and wage registers of the company. kindly advise as what could be proper solution or way out ?
From India, Chicalim
we started the company in 1998, we had 20 employees on muster as on 1st january2007. we made payment towards pf contribution of our employees from day one and today we do not know the number of contractors employees if reaching to gether number 20 during any of the previous periodprior to jan.2007 . what should be the base for pf calculation. The pf inspector talks big thing like sealing the office incase we do not give the imformation of contractors employees.He is already given the copies of balance sheet and wage registers of the company. kindly advise as what could be proper solution or way out ?
From India, Chicalim
Sir,
Ignorance of law and /or mistake of law is no excuse. So when a non compliance is discovered all law enforcement officers become naturally strict. So what you have to do is talk to the officer who visited you and took away your papers. One method is to ask for time and build up the contractors registers and pay the pf amounts by your self and deduct from the contractor's bill the same. For this you must take the contractor into confidence and get him to give his permanent staff names whose names could be used for preparation of the records. Once this is done you could show the same and get out of the problem.
The other method is to ask the inspector to help out in the matter as you do not know. This way he may help you comply and once you start pleading he may become sympathetic and oblige you also in ensuring compliance and closing the matter without any penal action against you. One thing you should remember here is that you will be liable to pay damages and interest for belated payments which cannot be reduced or waived. So take this into account while discussing with you contractor / inspector.
best of luck,
regards
From India, Bangalore
Ignorance of law and /or mistake of law is no excuse. So when a non compliance is discovered all law enforcement officers become naturally strict. So what you have to do is talk to the officer who visited you and took away your papers. One method is to ask for time and build up the contractors registers and pay the pf amounts by your self and deduct from the contractor's bill the same. For this you must take the contractor into confidence and get him to give his permanent staff names whose names could be used for preparation of the records. Once this is done you could show the same and get out of the problem.
The other method is to ask the inspector to help out in the matter as you do not know. This way he may help you comply and once you start pleading he may become sympathetic and oblige you also in ensuring compliance and closing the matter without any penal action against you. One thing you should remember here is that you will be liable to pay damages and interest for belated payments which cannot be reduced or waived. So take this into account while discussing with you contractor / inspector.
best of luck,
regards
From India, Bangalore
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Coverage of construction & contact workers under PF 22.1.2015.pdf
Coverage of Construction Labour under PF letter of 15 O-page-001.jpg