Esi act - deductibility for contracts

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Vikram (Querist)

15 April 2013 I would like to know when exactly a Contractor has to deduct ESI for the work done by sub-contractor when the Subcontractor is not registered for ESI.Also , when a principal subcontractor who is not registered, says his subcontractors are registered with ESI and paying the amount . What is to be done by the Contractor.

To illustrate

Party A - contractor (regd with ESI)
Party B - Sub Contractor (Not regd with ESI)
Party C - B's SC (regd with ES0

There is no agreement between A and C. When B raises invoice , Should A deduct 6.5% for ESI?

Ki$hor B

Ki$hor B (Expert)

15 April 2013 ESIC, as per my understanding, is deducted from the salary of an employee and not from the payments made to contactor / sub contractors.

Vikram

Vikram (Querist)

16 April 2013 I think there is a provision which states that the principal shall ensure that the provisions of ESI are complied with. In the case of contract workers , the employer has to deduct and pay. Need not be only for salaried or permanent employees. Pl check

Ki$hor B

Ki$hor B (Expert)

16 April 2013 I've already answered your question that was based on 'A', 'B' & 'C'.

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