we have received one notice from ESI dept states that "From Jan 14 to July 2014" for 7 employees you have not remitted ESI. Hence you are treated as defaulters. you have to pay with penalty Rs. 45,045/-.
My answer : on the above mentioned period our employees salary increased by Rs. 15,000/- hence i have not deducted ESI. whether its correct or not...
11 December 2014
For the gross salary of Rs. 15000/- ESI deduction is compulsory. If the Gross exceeds 15000/- the you can be exempted from ESI contribution either in the Month of April or October. In between you can't be exempted.
by virtue of provisions contained under section 2(9) of ESI Act, 1948 read with Rule 50 of ESI (Central) Rules, 1950 employees are deemed to be covered till close of respective contribution period.