PROVIDENT FUND ACT
Querist :
Anonymous
(Querist) 30 January 2010
This query is : Resolved
Dear Sir
we are appering for hearing at Regional Provident Fund Commissoner, as we are not deducted any PF amount from the job workes done, now he is doing assessment on this and asking us to pay 25.61% on total job work amount, job works charges attracts PF or not can you suggest some court judgements on this whether it is applicable or not
Waiting for your early reply and oblige
Padmaraju - Manager Compliance & HR
A V Vishal
(Expert) 30 January 2010
What do you mean is PF amount from job workes done? Who has done the job work, what is the nature of labour employed to do the job work. Please give right information briefly but with clarity about the problem along with the facts of the case.
B K Raghavendra Rao
(Expert) 30 January 2010
Provident Fund has nothing to do with job work. It relates to an individual employee of the establishment. If an employee has served the establishment for a minimum period specified in the Provident Fund Act, then the employer is bound to create PF account of that employee and deduct his contribution. It must be deposited with the PF office together with employer's contribution. 8% (10% if opted by the employee) of the wages earned has to be deducted towards PF. What is the 25.61% you are talking about is not understood.
Guest
(Expert) 30 January 2010
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Querist :
Anonymous
(Querist) 30 January 2010
Ours is a manufacturing of Readymade Garments, for this manufacturing process, we need to do jobworks like washing, embroidery, printing etc.. these works will be done on job work basis, outside our factory premises, these job work having their own establishments, and registerd under Factories
They are another type of job works in this manufacturing readymade garment is like attaching Beed work, sequences,Attaching Apliques, hand embroidery etc.. will be done by 4 to 5 persons outside the factory premises for 7 to 10 days
We will deal with 2 to 3 job work units, only consistent job work units are washing, printing and machine embroidery
For these type of jobworks, legally we need deduct PF from their raised bills or not, can you suggest any judgements whether it is a mandatory to deduct or not, if it is not mandatory please suggest any judgements the same we need to represent to the Regional Provident Fund Commissioner --- Thanks and Regards - Padmaraju
Guest
(Expert) 31 January 2010
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE
MOBILE.09271971251
e.mail.adv.nbsawant@yahoo.co.in
e.mail.nandkumarbs@sify.com
REGARDING THE PF ON JOB WORK.
1.KINDLY NOTE THAT JOB WORK IS A CONTRACT GIVEN TO OUT SIDE CONTRACTOR AND EMPLOYEES ARE HIS EMPLOYEES.YOU ARE NOT MAKING ANY SALARY PAYMENT TO THESE EMPLOYEES OF CONTRACTOR HENCE YOU ARE NOT RESPONSIBLE FOR ANY DUES. HENCE YOU MAY TAKE THIS STAND AND YOU WILL SUCCEED.
2.STILL IN CASE YOU NEED ANY FURTHER HELP YOU MAY SEND DETAILS OR CALL WILL HELP YOU
WITH BEST REGARDS TO YOU ALL.
THANKING YOU
YOURS SINCERELY
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE
