Dear Sir/s
I am a Proprietor working as contractor and carrying out some special activity mostly in construction / interiors sites. My scope of work is not continuous at any one site. I get a work order for the work on a per square feet rate basis + service tax. It normally gets over within a week. Sometimes in one to two days also. I do not supply any material. I have employed 8 people for this work and their average monthly payment is approx. Rs. 23,000/- plus including travelling allowance. I have taken a Workmen compensation policy. Recently most of the developers /builders / interior contractors have started insisting on providing PF / ESIC registration details and monthly payment challan copy.
Please guide if registration under PF / ESIC is applicable to me. I have tried to convince them that both PF & ESIC are not applicable to me as the number of employees employed by me as well as the payment made to them is beyond the limits as prescribed by PF / ESIC. However I have started loosing my orders as I am unable to provide the required registration details to them. In such a scenario what are the options available to me? Is there any provision for small contractors like me? Is it mandatory for me to take registration? Is there any exemption which I can avail? Is there any composite scheme wherein I can pay a certain amount per employee?
Please guide.....
sm balaji
From India, Mumbai
I am a Proprietor working as contractor and carrying out some special activity mostly in construction / interiors sites. My scope of work is not continuous at any one site. I get a work order for the work on a per square feet rate basis + service tax. It normally gets over within a week. Sometimes in one to two days also. I do not supply any material. I have employed 8 people for this work and their average monthly payment is approx. Rs. 23,000/- plus including travelling allowance. I have taken a Workmen compensation policy. Recently most of the developers /builders / interior contractors have started insisting on providing PF / ESIC registration details and monthly payment challan copy.
Please guide if registration under PF / ESIC is applicable to me. I have tried to convince them that both PF & ESIC are not applicable to me as the number of employees employed by me as well as the payment made to them is beyond the limits as prescribed by PF / ESIC. However I have started loosing my orders as I am unable to provide the required registration details to them. In such a scenario what are the options available to me? Is there any provision for small contractors like me? Is it mandatory for me to take registration? Is there any exemption which I can avail? Is there any composite scheme wherein I can pay a certain amount per employee?
Please guide.....
sm balaji
From India, Mumbai
in case of works contract, if the contractor will not provide the ESIC /EPF details then the principal will deduct the same from bills and will pay to department.
if you wish to continue the registration and contribution then there are many ways to make compliance with less hassle.
632if you wish to continue the registration and contribution then there are many ways to make compliance with less hassle.
Thanks for the reply.
However I am not engaged in Works contract. It is purely a labour contract on square feet rate basis.
More over the question is whether it is mandatory for me to register under PF / ESIC considering the number of employees I have and their pay scales. If no then then how do I claim expemption?
From India, Mumbai
However I am not engaged in Works contract. It is purely a labour contract on square feet rate basis.
More over the question is whether it is mandatory for me to register under PF / ESIC considering the number of employees I have and their pay scales. If no then then how do I claim expemption?
From India, Mumbai
as the principle is registered under ESIC/EPF they are liable for payment of ESIC/EPF for the workers engaged in their work, direct or through any contractor,
so you have get yourself registered under the respective acts volunteer basis.
ask for form V from the principal 1st when they raise such queries, afterwards you have to get yourself registered under CLRA, then ESIC and EPF
so you have get yourself registered under the respective acts volunteer basis.
ask for form V from the principal 1st when they raise such queries, afterwards you have to get yourself registered under CLRA, then ESIC and EPF
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