I am a HR service provider. In one of my services, I used to pay EPF to various small contractors of a big corporate company. But salaries used to be paid by the respective contractors. For paying EPF on behalf of the small unorganised contractors the Company used to reimburse EPF actuals and separately they used pay service charges to me. I am showing this income in the IT returns.
Whereas IT department is adding this EPF amounts to income since salary disbursement is less comparing with EPF remittance.
Kindly suggest a way out or shall I stop this kind of services in the coming months?
Ans: If an employer or authorised signatory has multiple establishments, he should obtain registrations for all the establishments with EPFO.
Employers are required to make remittances only after generating challans from the employer portal of the EPFO.
I understand that you have not followed specified procedure of EPFO. Please check EPFO portal or office for more details.