ESIC Applicability on contrator

This query is : Resolved 

01 January 2022 Dear Sir

Our company is registered under the ESIC & PF ACT in maharashtra
We have taken work for Electricity Earthing in our factory, for the this work we have received bill from contractor labour + material cost including.

whether we have to pay the ESIC on his bills or not.



Please help to understand the same

01 January 2022 ESIC payable only on your employees not on contractor employees.
Contractor only pay ESIC on his employees.
His bill of labour charges include such expenses.

01 January 2022 Sir,

Happy New Year

But our consultant say , if contractor not registered under the ESIC act then the principal (Company) need to pay EISC on his labour charge portion amount.
he said they work (contractor employee) on your site if if they work less then two/ three days.

You have to pay ESIC on his bill (Only on labour charges portion AT rate of 4%

Please revert

01 January 2022 This is a short term temporary work no need to pay ESIC for such work.


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