Dear Apurba Mitra,
Greetings for the day,
Yes it is mandatory to deduct esic form the contractor payment but not on whole bill but only on a part i.e labor charges if there is no labour charges were mentioned in the bill the 60% of the total bill amount should be consider as labor charges and deduct 6.5% of that 60% and deposit the same with esic vide challan. Circular in the matter is enclosed for the reference.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
252Greetings for the day,
Yes it is mandatory to deduct esic form the contractor payment but not on whole bill but only on a part i.e labor charges if there is no labour charges were mentioned in the bill the 60% of the total bill amount should be consider as labor charges and deduct 6.5% of that 60% and deposit the same with esic vide challan. Circular in the matter is enclosed for the reference.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Apurba needs to read the do unmentioned / notice in full and then figure out where they stand.
From what I understand, probably option f or G applies and therefore the company is not liable to pay ESIC
From India, Mumbai
From what I understand, probably option f or G applies and therefore the company is not liable to pay ESIC
From India, Mumbai
Dear all,
As already conveyed, Job work done outside the factory / establishment premises through factory/establishment engaging less than 10/20 employees which are not independently coverable, and where no supervision is exercised and who are undertaking the work for more than one employer, the employees of such Job Contractors are not coverable under the provisions of the Act.and as such no contribution is payable.
P K Sharma
From India, Delhi
As already conveyed, Job work done outside the factory / establishment premises through factory/establishment engaging less than 10/20 employees which are not independently coverable, and where no supervision is exercised and who are undertaking the work for more than one employer, the employees of such Job Contractors are not coverable under the provisions of the Act.and as such no contribution is payable.
P K Sharma
From India, Delhi
Dear Apurba,
In case the "contractor" is supplying your organisation with finished / semi-finished materials , why do you wish to cover him under ESI ? He is working in a remote location outside your premises & with no day-to-day supervision from your organisation. He should only be treated as a "Supplier" and should bill on materials supplied , he will be governed by the prevailing tax laws.
Take care,
Sourav Mukherjee
From India, Bangalore
In case the "contractor" is supplying your organisation with finished / semi-finished materials , why do you wish to cover him under ESI ? He is working in a remote location outside your premises & with no day-to-day supervision from your organisation. He should only be treated as a "Supplier" and should bill on materials supplied , he will be governed by the prevailing tax laws.
Take care,
Sourav Mukherjee
From India, Bangalore
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ESI deduction.doc
ESI contribution rates lowering.pdf