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
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.
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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