I run a small web development firm. My firm is a sole proprietorship with 4-5 employees. My yearly turnover is less than 20 lakhs.
I have the following questions, please answer them:
1. What is PF, ESI, etc.? Are they applicable to my firm? If yes, how should I proceed?
2. I have 3 programmers whose gross salary is 20k per month each. Do I have to deduct TDS? If yes, what should I do if an employee is not interested in TDS deduction?
3. While hiring new employees, do I have to check their previous employers' documents like Form 16, etc.?
Thanks
From India, Delhi
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I have the following questions, please answer them:
1. What is PF, ESI, etc.? Are they applicable to my firm? If yes, how should I proceed?
2. I have 3 programmers whose gross salary is 20k per month each. Do I have to deduct TDS? If yes, what should I do if an employee is not interested in TDS deduction?
3. While hiring new employees, do I have to check their previous employers' documents like Form 16, etc.?
Thanks
From India, Delhi
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Your firm is not applicable under PF & ESI Act.
For PF (Minimum employees = 20) and for ESI (When 20 employees' gross salary is less than 10000).
For TDS, kindly consult your C.A.
For new employees, please verify their experience letters, certificates, etc.
Please provide me with your name and location via email at amitkumargautam1982@gmail.com.
From India, New Delhi
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1For PF (Minimum employees = 20) and for ESI (When 20 employees' gross salary is less than 10000).
For TDS, kindly consult your C.A.
For new employees, please verify their experience letters, certificates, etc.
Please provide me with your name and location via email at amitkumargautam1982@gmail.com.
From India, New Delhi
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Hi,
EPF is applicable if your firm has more than 20 employees. ESIC is applicable if your firm has more than 10 employees. The Labour Welfare Fund is applicable if you have 5 or more employees. Most people are not aware of this, so you do not need to worry about this as well. TDS is deducted only if your firm is coming under audit (i.e., if your firm has a turnover of more than 40 lakhs). As a sole proprietor, you can show the income tax department that you have more employees, each earning a salary of around Rs. 10,000.
Regarding all the above, you do not need to worry and can concentrate on your core activities. However, if you are hiring anybody, Form 16 will give a clear picture of the salary the candidate was drawing. Background checks, such as photographs, degree/school certificates, photo ID, proof of residence, etc., are needed when you hire any employee.
I hope this information will help you.
Siva
From India, Mumbai
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EPF is applicable if your firm has more than 20 employees. ESIC is applicable if your firm has more than 10 employees. The Labour Welfare Fund is applicable if you have 5 or more employees. Most people are not aware of this, so you do not need to worry about this as well. TDS is deducted only if your firm is coming under audit (i.e., if your firm has a turnover of more than 40 lakhs). As a sole proprietor, you can show the income tax department that you have more employees, each earning a salary of around Rs. 10,000.
Regarding all the above, you do not need to worry and can concentrate on your core activities. However, if you are hiring anybody, Form 16 will give a clear picture of the salary the candidate was drawing. Background checks, such as photographs, degree/school certificates, photo ID, proof of residence, etc., are needed when you hire any employee.
I hope this information will help you.
Siva
From India, Mumbai
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Yes, really good discussion, i have worked in proprietorship, and agree in concentrating in core activitites. TDS etc. can be cleared in form 16 at the end of the year.
From India, Delhi
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From India, Delhi
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myself running own boutique my annual turnover is below 20 lacs, no. of worker are 15 please give me a help for registration of my boutique name under sole propriotorship
From India, Ludhiana
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From India, Ludhiana
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Very good discussion has taken place here. In fact, the information provided by Mr. Siva regarding Shrey's question is absolutely correct.
I would like to add that a proprietorship concern does not need to deduct Tax at source (TDS) if the payment is being made to another individual. It is a fact that all employees are individuals. Therefore, no TDS is applicable.
YR Rao
8-6-10
From India, Hyderabad
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I would like to add that a proprietorship concern does not need to deduct Tax at source (TDS) if the payment is being made to another individual. It is a fact that all employees are individuals. Therefore, no TDS is applicable.
YR Rao
8-6-10
From India, Hyderabad
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I have started my own proprietor firm, and the total number of employees is 4. However, my problem is that I will pay 1 lakh salary to 1 employee, and the remaining three will receive just 40,000. Could you please advise me on how to prepare a salary slip for these employees and how to handle TDS for this employee?
What amount of TDS do I have to deduct when processing the salary?
From India, Ahmedabad
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What amount of TDS do I have to deduct when processing the salary?
From India, Ahmedabad
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Sir, I have one question regarding a sole proprietor firm that has 70 or more employees, but there is no compliance with labor acts such as PF, ESIC, PT, etc. This unit is a manufacturing unit, yet there is no registration under any labor act. Is it mandatory to register for PF, ESIC, PT? What about a leave policy? Currently, nothing is being implemented in this firm. Can the government take any action against it or not?
From India, Rajkot
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From India, Rajkot
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Hi,
As your firm employs 70 plus employees, it would be advisable for you to start following the applicable statutory commitments such as PF and ESI. I recommend seeking the help of a consultant who can assist you in the registration process and help streamline the operations of the firm.
From India, Madras
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As your firm employs 70 plus employees, it would be advisable for you to start following the applicable statutory commitments such as PF and ESI. I recommend seeking the help of a consultant who can assist you in the registration process and help streamline the operations of the firm.
From India, Madras
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