Hi All,
Please suggest the PF/ESIC rules for Freelancer-Professional Services Providers (tax deducted under Section 94J) who are working on our payroll at the client's side on a per-day basis. They work for 1 day, 2 days, 7 days, or as per client requirements. Are they liable for PF contribution?
Regards, Trapti
From India, Noida
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Please suggest the PF/ESIC rules for Freelancer-Professional Services Providers (tax deducted under Section 94J) who are working on our payroll at the client's side on a per-day basis. They work for 1 day, 2 days, 7 days, or as per client requirements. Are they liable for PF contribution?
Regards, Trapti
From India, Noida
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When the gross payment is going to be over ₹30,000 per year, TDS is applicable at 10% under section 194J (professional service). However, the recipient can claim the TDS deducted by filing ITR-3 with the department. To file the claim, obtain Form 16A from the deductor.
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Dear Trapti If the employee.person does not draw "wages" PF and ESIC will not be attracted. Shailesh Parikh 99 98 97 10 65 Vadodara
From India, Mumbai
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From India, Mumbai
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Thank you for your response.
Yes, I agree with Usha ji. We are currently following the same process, but I would like clarification on whether we need to obtain PF and ESIC code numbers. Will PF or ESIC be applicable for freelancers as well? I have spoken to a few CAs, but they have caused confusion regarding PF and ESIC for freelancers.
From India, Noida
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Yes, I agree with Usha ji. We are currently following the same process, but I would like clarification on whether we need to obtain PF and ESIC code numbers. Will PF or ESIC be applicable for freelancers as well? I have spoken to a few CAs, but they have caused confusion regarding PF and ESIC for freelancers.
From India, Noida
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Contract workers are not regular employees; they are paid for their "allocated job" and not for duty. This applies to professionals like Chartered Accountants or inspection agencies who work for more than one establishment simultaneously; they receive professional skill fees. Wage and salary earners are eligible for ESIC/EPF.
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Bihar-Amendment Towards Registration And Enrollment Process Under Bihar Professional Tax Rules, .pdf