The PF Amount must be calculated as per the employee Strength and their attendance.
You ask for submission of the Paysheet, Attendance Register/Muster Roll and accordingly calculate the Minimum wages and deduct the Employee PF/Employer PF (Total 25.61%). Then instruct the contractor to remit the PF amount correctly and on receipt of the PF Challan / ECR Remittance details. Afterwards you can release the withheld amount in his bill.
27th February 2013 From India, Kumbakonam
3rd March 2013 From India, Delhi
Kindly note that the failure payment of Provident Fund by the Contractor the entire liability has to be borne by the principal.
Hence,it is recommended that till the moment the concerned Contractor (Man Power Providing) does not submit the proof i.e. Pay Roll, and P.F. Payment details you can keep his payment on hold.
In case the Show Cause is issued by P.F Department then you can settle the same from his hold payment.
Or otherwise you can also hold 26% of his payment and release the balance amount, till the production of the said proof.
19th March 2013 From India, Pune
Apologies for the belated reply.
Please take the monthly attendance details. Calculate their monthly wages and further calculate the PF amount (both employee & Employer share - 25.61%) and hold the amount so that they can submit the chalan, paysheet, ECR Copy and it can be released on submission of the same.
Normally the PF / Service Tax are reimbursement nature and not payment nature.
Please check the Work Order issued to them and act accordingly.
21st March 2013 From India, Kumbakonam