Dear Seniors,
I have a big issue in my company.
We had asked our legal consultant to complete all formalities relating to the new factory. As our company partners are fully time involved in the operations of the company and have only little knowledge about the administration, they didnt follow up about all legal formalities.
We had a ESI Inspection and we didnt have esi for people in the new factory.
Now PF inspection is going on, they have made said that we are liable for contractors outside premises also and said that total PF liability is coming out to 40 lakhs. Our consultant has asked us to maintain documentation properly and now he says that this has to be given.
Please advise what can be done as this is real harassment.
PF inspectors are saying that if the TDS of contractors is cut under section 194 than company is responsible for there PF.
Regards,
Charles
From India, Delhi
I have a big issue in my company.
We had asked our legal consultant to complete all formalities relating to the new factory. As our company partners are fully time involved in the operations of the company and have only little knowledge about the administration, they didnt follow up about all legal formalities.
We had a ESI Inspection and we didnt have esi for people in the new factory.
Now PF inspection is going on, they have made said that we are liable for contractors outside premises also and said that total PF liability is coming out to 40 lakhs. Our consultant has asked us to maintain documentation properly and now he says that this has to be given.
Please advise what can be done as this is real harassment.
PF inspectors are saying that if the TDS of contractors is cut under section 194 than company is responsible for there PF.
Regards,
Charles
From India, Delhi
Yes Charles
It is true you should sattled the case with liason and make better negotions
I think u understand my language.
For complete clarifaication please go threw the PF act and talk with another consultant becasue may be you are not trust on your consultant
many thing I can not say here
Monday I will try to contact u and tell about for this situation as pe my experiance
From India, New Delhi
36It is true you should sattled the case with liason and make better negotions
I think u understand my language.
For complete clarifaication please go threw the PF act and talk with another consultant becasue may be you are not trust on your consultant
many thing I can not say here
Monday I will try to contact u and tell about for this situation as pe my experiance
From India, New Delhi
Are the ESI and EPF liabilities relate to previous employer's liabilities? Normally, when a running company is taken over, such liabilities are also settled in advance. Otherwise, it becomes liabilities of the present owner. Generally, it is joint liability of both the transferee and the transferor companies. But if the transferor fails to pay it, the entire liability will come on the transferee, ie, the present company.
Now, without getting details of amounts due it is difficult to sort out your issue. Contractors working outside your premises need not be covered by ESI or EPF. Tax is deducted from the payments made even to such services which are outside the purview of PF. Therefore, the stand of EPF authorities that all such payments should be included and you should pay such a huge amount as contribution should be challenged. Do not bend to pay bribe. Let the Asst. Provident Fund Commissioner send a summons under section 7A of the Employees Provident Fund and Miscellaneous Provisions Act and call on you to produce books. You can fight it there. It may be an intentional motive of the Enforcement officer to collect money from you. Don't give it but let there be official hearing.
Regards,
Madhu.T.K
From India, Kannur
Now, without getting details of amounts due it is difficult to sort out your issue. Contractors working outside your premises need not be covered by ESI or EPF. Tax is deducted from the payments made even to such services which are outside the purview of PF. Therefore, the stand of EPF authorities that all such payments should be included and you should pay such a huge amount as contribution should be challenged. Do not bend to pay bribe. Let the Asst. Provident Fund Commissioner send a summons under section 7A of the Employees Provident Fund and Miscellaneous Provisions Act and call on you to produce books. You can fight it there. It may be an intentional motive of the Enforcement officer to collect money from you. Don't give it but let there be official hearing.
Regards,
Madhu.T.K
From India, Kannur
Dear Charles,
It is really a sad situation for your company.
Recently many Enforcement Officers are demanding huge amount as bribes. Just imagination even if you escaped now what will be the case for the next inspectors?
As Mr.Madhu pointed out wait for 7A notice to be served and explain the situation to AC in the personal hearing and request for an amicable settlement.
For TDS matter you can consult with an auditor and get his option. For contract works outside the premises, I am enclosing a file for your reference.
S.Sethupathy,
Excellent HR Services,
Erode
From India, Selam
It is really a sad situation for your company.
Recently many Enforcement Officers are demanding huge amount as bribes. Just imagination even if you escaped now what will be the case for the next inspectors?
As Mr.Madhu pointed out wait for 7A notice to be served and explain the situation to AC in the personal hearing and request for an amicable settlement.
For TDS matter you can consult with an auditor and get his option. For contract works outside the premises, I am enclosing a file for your reference.
S.Sethupathy,
Excellent HR Services,
Erode
From India, Selam
The money which u should had given to your poor workers,now u have to give them to corroupt government officials.U would have been much better off if u would had given it faithfully to the deserving workers.They would had worked better and with more dedication.U stole their money and now the officials are taking it away from u.There is always a penalty for breaking the law.iF U GET CAUGHT.And u are caught.
From India, Ahmadabad
From India, Ahmadabad
I am paying all my workers correctly. I have all challan about payments to workers inside my factory. PF guys are asking for liability of outside contractor.
Why should I bear with outside Jobwork people who does my work once in a while.
From India, Delhi
Why should I bear with outside Jobwork people who does my work once in a while.
From India, Delhi
Sir,
Thank you for your advice and the attachments you have provided. Its of lot of use. We have received a letter from APFC and the date has lapsed twice. I asked my consultant to to deal but he didn't go for the trial. The PF Inspectors are coming to my place and asking for details which I have provided. They are telling that I am liable towards outside contractors and I have a liability of 25% of total jobwork amount and I have to pay it in the department or I have to pay Inspectors with appropriate amount to adjust it.
Thanks for your valuable advice.
From India, Delhi
Thank you for your advice and the attachments you have provided. Its of lot of use. We have received a letter from APFC and the date has lapsed twice. I asked my consultant to to deal but he didn't go for the trial. The PF Inspectors are coming to my place and asking for details which I have provided. They are telling that I am liable towards outside contractors and I have a liability of 25% of total jobwork amount and I have to pay it in the department or I have to pay Inspectors with appropriate amount to adjust it.
Thanks for your valuable advice.
From India, Delhi
Dear Sir, I will suggest that now u should wait for the 7-A notice and represent ur case through a well conversant P.F.Consultant who can represent the case as per ur documents along with relevant provisions in this regard. P.F. contributions are to be paid as per provisions only and not @ 25% on total wages but on certain items on which P.F.is payable and also not on excluded employees.
In case of any problem or if further clarification is required, pl. contact me on 09988021715 or visit my website <link no longer exists - removed>
with regards,
A K CHANDOK,
[REG.P.F.COMMISSINER-I (Retired)]
From India, Chandigarh
In case of any problem or if further clarification is required, pl. contact me on 09988021715 or visit my website <link no longer exists - removed>
with regards,
A K CHANDOK,
[REG.P.F.COMMISSINER-I (Retired)]
From India, Chandigarh
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PF Inspection Report-1_Rajesh Sankhesara.docx
HC All - Trainees not covered for PF -2010.pdf