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Regarding ESIC and EPFO non compliance

This query is : Resolved 

23 October 2025 Respected Colleagues,
A proprietor running restaurant business in himachal with labour and staff above 20 persons, till date no ESI and EPF compliances have been done (Registration also not done) , 70% payment in cash but below 10k and 30% online,
Now my ques is, Whether due to non compliance all the salary & wages disallow in tax audit report by auditor or auditor just mention about non compliance in TAR in order to safe guard own.

Please advice

23 October 2025 No automatic disallowance of all salary and wages under tax audit merely because ESI/EPF registration was not done.

The auditor’s duty is to report the non-compliance factually to safeguard their responsibility.

23 October 2025 Ok sir thank you so much

23 October 2025 You are welcome.


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