PENALITY NOTICE ISSED FROM ESI
This query is : Resolved
Quick Summary
Harikrishnan
(Querist)
06 July 2022
The last month we got a notice from ESI for a site inspection. At the time of inspection, the inspecting officer verified our Blance sheet and Profit & Loss account.
After a few days we again got a notice from ESI and asked to pay 28318 (4% for our expense like Rent, Repairs & Maintenance, Labour Charge, Shop Expense, Service Charge, Loading Charge).
Please provide the ESI rules about shop expenses.
After a few days we again got a notice from ESI and asked to pay 28318 (4% for our expense like Rent, Repairs & Maintenance, Labour Charge, Shop Expense, Service Charge, Loading Charge).
Please provide the ESI rules about shop expenses.
CA R SEETHARAMAN
(Expert)
07 July 2022
ESI not payable on your expenses. It's 4% payable on salary paid to your employees.
E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act.
The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate.
The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period.
Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act.
The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate.
The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period.
Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Harikrishnan
(Querist)
07 July 2022
But Sir, ESI authorities asked to pay 4%. please give your mail id, i will send the notice
CA R SEETHARAMAN
(Expert)
07 July 2022
It's a wrong notice.
First check are you covered under ESi.
How many people you employ.
4% is applicable on salary paid only, not on rent and other expenses.
rseeraman@gmail.com
First check are you covered under ESi.
How many people you employ.
4% is applicable on salary paid only, not on rent and other expenses.
rseeraman@gmail.com
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