PF & ESI Deduction at Source
GIRISH SHARMA
(Querist) 11 June 2010
This query is : Resolved
Dear Sirs,
Does the PF & ESI Acts allow deduction at soucre ?
Case: A company engaged a Contractor to do some work. He engaged his 9 workers at the company's premises for the same. He DOESNOT HAVE PF & ESI registration. Can the company deduct the PF & ESI from his payment & deposit the same on his behalf ?
If yes, pls quote the section/regulation no. or case law etc.
Urgently awaiting reply.
Regards
G Sharma
Daksh
(Expert) 11 June 2010
Dear Mr.Girish Sharma,
Yes the Company is within its rights to make deductions at source and can deposit the same with statutory authorities/or in the alternate take a declaration from the contractor that it will do the same prior to making the payment to his employees.
Best Regards
Daksh
GIRISH SHARMA
(Querist) 11 June 2010
Dear Mr. Daksh,
Thanks for your reply. Pls note the contractor is NOT registered with PF or ESI Dept. as no. of employees below 20 & 10 respectively.
Kindly quote the section/regulation etc which empowers the company to do so.
Regards
Girish
