Hi friends,
This is Vijay, seeking help to learn more about the EPF sub-code. Is there any provision to get a sub-code under the main EPF code which will help to ensure compliance of various small-size contractors who are unable to maintain the same as per requirements?
From India, Ahmedabad
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This is Vijay, seeking help to learn more about the EPF sub-code. Is there any provision to get a sub-code under the main EPF code which will help to ensure compliance of various small-size contractors who are unable to maintain the same as per requirements?
From India, Ahmedabad
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Hi Vijay, You will get only one EPF code. For Contractors you can generate different ECRs for accounting purpose. This will help principal employer as well contractor.
From India, Bengaluru
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130From India, Bengaluru
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Dear Colleague,
There is a main code for each establishment for remittance and compliance of PF by the Employer. The employer can get sub-codes under the establishment code if located in a different state for easy compliance, and EPFO is allotting such sub-codes also.
In the case of a Sub-Code for compliance in the case of Contractors can also be obtained, but it is highly discouraged for the reason that you will end up managing entire activities like remittance, inspections, accounting, settlements, transfers, and so on, including 7A Enquiries, etc. This will add too much burden. It is always important to ensure that Contractors do their own compliance and you put them into your audit radar. Legally create them as separate establishments with Contract License, PF Code, ESI Code, etc., as it will be a separate entity and will protect the interest of the Organization in the long run in many ways. In several of my previous organizations, we faced lots of challenges due to compliance under sub-code on behalf of contractors and notices received even after a few years of the leaving of contractors. Approach this as a "Let them do their job" manner and improve your audits on them. This is my suggestion from a practical point of view, and you may kindly make a suitable call after weighing the pros and cons.
From India, Chennai
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There is a main code for each establishment for remittance and compliance of PF by the Employer. The employer can get sub-codes under the establishment code if located in a different state for easy compliance, and EPFO is allotting such sub-codes also.
In the case of a Sub-Code for compliance in the case of Contractors can also be obtained, but it is highly discouraged for the reason that you will end up managing entire activities like remittance, inspections, accounting, settlements, transfers, and so on, including 7A Enquiries, etc. This will add too much burden. It is always important to ensure that Contractors do their own compliance and you put them into your audit radar. Legally create them as separate establishments with Contract License, PF Code, ESI Code, etc., as it will be a separate entity and will protect the interest of the Organization in the long run in many ways. In several of my previous organizations, we faced lots of challenges due to compliance under sub-code on behalf of contractors and notices received even after a few years of the leaving of contractors. Approach this as a "Let them do their job" manner and improve your audits on them. This is my suggestion from a practical point of view, and you may kindly make a suitable call after weighing the pros and cons.
From India, Chennai
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Dear Vijay,
The sub code for a contractor is just like an 'AA' ball hitting me. Contractors may have other contracts; what about compliance regarding that organization? After the termination of your contract, if they do not maintain compliance, then who will bear the consequences before going for the sub code, you must consider its implications carefully.
S. Kumar
From India, New Delhi
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The sub code for a contractor is just like an 'AA' ball hitting me. Contractors may have other contracts; what about compliance regarding that organization? After the termination of your contract, if they do not maintain compliance, then who will bear the consequences before going for the sub code, you must consider its implications carefully.
S. Kumar
From India, New Delhi
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Establishment Compliance Support - Pragnaa.pdf