We have a contractor deputed for stenciling of drums at our plant.The contractor is not registered with PF or ESIC.He employs only 5 labours for the stenciling job.Should we deduct 6.5% of the amount from his bills and pay to ESIC?Are we entitled to do so?What is the correct procedure?
Can anybody help out please?
N.Sivakumar

From India, Madras
The Minimum Employees For Registration Is 20 And Above. So Need Not Register With Esic And P.f.
From India, Coimbatore
You have not mentioned the staff strength of your company. If your total strength including the contractors 5 employees crosses 20 Nos. then your establishment will be covered under ESI Act.
From India, Madras
The company employs about 20 people but their salaries are above Rs.10000/- and hence we do pay any ESIC for the employees.
What we wanted to know is whether we should deduct ESI in the payments to the contractors who do not have ESIC regn.The contractor has only 5 people working under him.As a principle employer should we deduct ESI and remit on his behalf.The ESI authorities are not accepting the practice of deducting the ESI from the bills.
Please clarify.

From India, Madras
You Need Not Accept The Esic's Offer. If You Have Not Remitted On Behalf Of The Contractor From Their Bills. Then You Shall Pay From Your Own Pocket. Is It Possible? Otherwise, You Forced The Contractor To Take A Esic Number
From India, Coimbatore
We have a contractor deputed for stenciling of drums at our plant.The contractor is not registered with PF or ESIC.He employs only 5 labours for the stenciling job.Should we deduct 6.5% of the amount from his bills and pay to ESIC?Are we entitled to do so?What is the correct procedure?
Can anybody help out please?
N.Sivakumar
Dear N. Sivakumar
If your company more than 20 employee (i.e. covered under esic) you must be deduction 6.5 % under contractor payment and deposite to Bank in seprate challan mention it Contractor payment.
Madan Mohan

From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.