Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)   (1372 Points)

27 June 2014  

My client has received notice for non payment of ESI from Oct2012 to Oct2013. Client has paid both Employee and Employer contribution on his own(he does not collect 1.75% from Employee) in November. We have a provision that Employee contribution should be deposited with in due date specified under respective law otherwise it will not be allowed as deduction while computing Incomet tax and Employer will not get deduction unless he deposited same with in due date specified under 139(1). My doubt is does employer get deduction towards his contribution(4.75%) for the 2012-13 in 2013-14 IT Return on payment basis? and as Employer does not pay ESI for Apr2013 to Oct2013(Current year) with in due date as specified under ESI Act, does employer get deduction regarding Employee contribution for the current year? Awaiting for an early reply.