Hi ,
Please advise me if a labour contractor is depositing PF from last 2 years and is not registered with ESIC . In case , if it get registered with the same , does it attract any type of Damage
If yes , is there any possiblity of avoiding this .......
Thanks & regards
Ashish Gaur
From India, Dehra Dun
4Please advise me if a labour contractor is depositing PF from last 2 years and is not registered with ESIC . In case , if it get registered with the same , does it attract any type of Damage
If yes , is there any possiblity of avoiding this .......
Thanks & regards
Ashish Gaur
From India, Dehra Dun
hi ashe ur question is not clear
if a contractor depositing his pf amount then should depositing esi amount too. if u have not deposited the esi amount then beaing a principal employer u will me eligible for paying the amount and fine of 25% per anum too.
since esi slab is higher then pf slab 6500 so definetely a worker come under esi act too. only u can safe if the worker's wages is above 10,000 else u have to deposit the esi penalty of both employee and employeer too
From India, Angul
if a contractor depositing his pf amount then should depositing esi amount too. if u have not deposited the esi amount then beaing a principal employer u will me eligible for paying the amount and fine of 25% per anum too.
since esi slab is higher then pf slab 6500 so definetely a worker come under esi act too. only u can safe if the worker's wages is above 10,000 else u have to deposit the esi penalty of both employee and employeer too
From India, Angul
Hi rath_ratikanta,
Thanks for your reply , I wanted to clarify if due to some reason , the contractor did not register for the ESI but is paying for PF from last 2yrs appox.ie. from date of his registration . Ideally he should get register first with ESI .
The employee wages is less and comes under coverage of ESI . If he now ,wants to get register with ESI . Is there any way / clause which can help in order to avoid damage charges for the same .
With regards
Ashish
From India, Dehra Dun
Thanks for your reply , I wanted to clarify if due to some reason , the contractor did not register for the ESI but is paying for PF from last 2yrs appox.ie. from date of his registration . Ideally he should get register first with ESI .
The employee wages is less and comes under coverage of ESI . If he now ,wants to get register with ESI . Is there any way / clause which can help in order to avoid damage charges for the same .
With regards
Ashish
From India, Dehra Dun
hi ashish first of all PF and ESI both are separated. as u have said the employee wages are less and comes under coverage of ESI. in your case the problem is more difficult because of 2 year duration.
so your organisation is very lucky or the esi officers on your state not doing his job properly, lets forget tht come to point.
current problem in your case
1. u have not deduct employee contribution as well as employeer contri bution on that period.
2. since u deducted PF amount of those employyes so defenetely u have maintained there Salary registers and all bill payments done to the contractor are maintained in your account books too.
if any time any esi officer will come for audit of your records then u will be in trouble. they will make a huge panalty on company becaz principal employeer always responsible
solutions which ever will applicable
1. deposit all money employee and employer contribution with penalty. send a forwarding letter to your ESI branch officer that since the employer don't have there code so u r depositing all money with penalty and along with u also give the esi filled forms of employes and also for 3 duplicate will all the detais of employees and clearly mentoined that these employees don't face any accident till date of joining.
or
2.when ever audit take place try to hide all records related to that contractor. ( which is difficult since the payements r made to the contractor from ur books with all details)
now on wards either apply for the new code or deduct the contribution and deposit in ur organisation esi code with a separate challan
hope it help u
From India, Angul
so your organisation is very lucky or the esi officers on your state not doing his job properly, lets forget tht come to point.
current problem in your case
1. u have not deduct employee contribution as well as employeer contri bution on that period.
2. since u deducted PF amount of those employyes so defenetely u have maintained there Salary registers and all bill payments done to the contractor are maintained in your account books too.
if any time any esi officer will come for audit of your records then u will be in trouble. they will make a huge panalty on company becaz principal employeer always responsible
solutions which ever will applicable
1. deposit all money employee and employer contribution with penalty. send a forwarding letter to your ESI branch officer that since the employer don't have there code so u r depositing all money with penalty and along with u also give the esi filled forms of employes and also for 3 duplicate will all the detais of employees and clearly mentoined that these employees don't face any accident till date of joining.
or
2.when ever audit take place try to hide all records related to that contractor. ( which is difficult since the payements r made to the contractor from ur books with all details)
now on wards either apply for the new code or deduct the contribution and deposit in ur organisation esi code with a separate challan
hope it help u
From India, Angul
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