PF & ESI

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its Neha (Querist)
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09 September 2009 can any member tell me about
1)the treatment of PF & ESI in Income Tax computation of a partnership firm?
2) the due date of deposit of PF & ESI and its rate?
3) consequence of delay in Payment of the same?
4) the ESI & PF of Year 2007-08 is deposited in 2008-09, will it have any effect on the financial statement of 2008-09 of the partnership firm?
5) do we require segreggation of employers and employees contribution to PF in preparing financial statement of a partnership firm?

ADITYA

ADITYA (Expert)
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15 September 2009 ESIC & PF tax liabilities are always on both Employees as well as Employers. so naturally you have to maintain two seperate accounts viz :
1) Employees Contribution (PF)
2) Employees Contribution (ESIC)
under the Head Current Liability

3) Employers Contribution (PF)
4) Employers Contribution (ESIC)
Under the Head - Expenses

The rate of ESIC is 1.75% on employess Gross Salary is to be deducted from concern Employee and along with it 4.75% employers share to be paid.
PF ( employee share) is 12% to be deducted from salary & alongwith it 13.63% employers share to be paid.

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