Hi,
Let me know about the pf deduction
ie 12 % on basic as employee contribution & 12 % on basic as employer contribution.
Sealing limit is Rs 6500/month
My doubt is Suppose a employee gets Basic & D.A together for Rs.11000 whether we have to deduct from employee & employer contribution is for sealing amt of Rs.6500 or Rs.11000 (Employer is willing to pay his contribution for Rs.11000)
pl clarify
regards
satheesh
From India, Madras
Let me know about the pf deduction
ie 12 % on basic as employee contribution & 12 % on basic as employer contribution.
Sealing limit is Rs 6500/month
My doubt is Suppose a employee gets Basic & D.A together for Rs.11000 whether we have to deduct from employee & employer contribution is for sealing amt of Rs.6500 or Rs.11000 (Employer is willing to pay his contribution for Rs.11000)
pl clarify
regards
satheesh
From India, Madras
dear all, any idea as to for how many years do we have to keep all the records to facilitate inspection from esi inspector? at present esi inspector wants to examine my company documents for the year 2000 - 01. It is very difficult to dig out old cash book etc. Is there any law governing this?
From India, Ernakulam
From India, Ernakulam
Well there is no specific period mentioned in the ESI Act regarding the back period for which you are required to keep the records ready for Inspection by the ESI Inspectors. There is one provisions regarding the Inspection Book, wherein it is mentioned that the ESI Inspection book is required to be kept safe for five years from the date of last inspection. As per the new inspection policy, routine Inspection are not done, only the defaulter units or the randomly selected units are inspected. However, you are still required to keep your accounts books ready for their inspection. Further, as per this policy no inspections are being done without the simultaneous checking of Ledger records.
Now, your question is regarding the Law by which this is governed? ESI Act doesn't lay down any specific period for keeping of records except Inspection book. However, there is a provision in the Income Tax Act wherein an Assesee is required to keep the last seven years of their records safe-(Your CA may throw more light on this). So many of my clients whenever they are asked about the production of old records quotes this provision and give them a letter and the same genrally accepted by the department. Now you are being asked to produce the records for 2000-01 which is in my opinion you must produce else they'll claim ad-hoc contribution on anything they may deem fit and in the court of law you'll not be able to defend yourself just by making a plea that the records are old and hence untraceable because the ESI'll say that there is nothing in the ESI Act regarding this and even IT Act requires the safe keeping of last seven years records.
From India, Delhi
26Now, your question is regarding the Law by which this is governed? ESI Act doesn't lay down any specific period for keeping of records except Inspection book. However, there is a provision in the Income Tax Act wherein an Assesee is required to keep the last seven years of their records safe-(Your CA may throw more light on this). So many of my clients whenever they are asked about the production of old records quotes this provision and give them a letter and the same genrally accepted by the department. Now you are being asked to produce the records for 2000-01 which is in my opinion you must produce else they'll claim ad-hoc contribution on anything they may deem fit and in the court of law you'll not be able to defend yourself just by making a plea that the records are old and hence untraceable because the ESI'll say that there is nothing in the ESI Act regarding this and even IT Act requires the safe keeping of last seven years records.
From India, Delhi
Dear Rajiv,
you are obsolutely correct even increment took place in between the contribution period then ESI contribution shold extend till the completion of the contribution period.But what will happen in case where decision of increment has delyed (.i.e. say till july) thereafter the increiments had provided retrospectively from the begining of the contribution period say from April.
In such cases I believe that ESI Deductions shold stop immediately in those cases where the gross salaries have crossed Rs 10000 after considering the incriments.and the deductions pertains to the earlier period (i.e.apr, may, june) should be refunded to those employees and Employer,s contributions can be setoff against the ensuing periods contributions.
I hope iam clear about this, in case any qurries wrt to this please revert me back
Thanks
Sathyanarayana Bhat
From India
you are obsolutely correct even increment took place in between the contribution period then ESI contribution shold extend till the completion of the contribution period.But what will happen in case where decision of increment has delyed (.i.e. say till july) thereafter the increiments had provided retrospectively from the begining of the contribution period say from April.
In such cases I believe that ESI Deductions shold stop immediately in those cases where the gross salaries have crossed Rs 10000 after considering the incriments.and the deductions pertains to the earlier period (i.e.apr, may, june) should be refunded to those employees and Employer,s contributions can be setoff against the ensuing periods contributions.
I hope iam clear about this, in case any qurries wrt to this please revert me back
Thanks
Sathyanarayana Bhat
From India
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ESI contribution rates lowering.pdf