if the company is paying fixed quarterly performance award and or leave encashment is there any liability for deduction of ESI on that please clarify with relevant notification/circular etc
Deepak Chauhan (CA Final Student) (138 Points)
03 July 2009if the company is paying fixed quarterly performance award and or leave encashment is there any liability for deduction of ESI on that please clarify with relevant notification/circular etc
LAXMIKANT JAIPURKAR
(Practicing Company Secretary/Tax Consultant)
(403 Points)
Replied 13 July 2009
ESIC is payable on gross salary and wages. Performance award and leave encashment are not exempted from ESIC. There is no any circulr but there is no need for circular. If there is any exemption, then there will be any circular. Act itself is self explanatory.
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