ESI

Facts:

1. A company which in the manufacturing Environment has deducted ESI amount and paid on bahalf of the Service providers.

2. The rate of deduction is 6.5% on the Gross bill.

3. This is done because the Service provider doesn't have ESI registration.

Questions:

1. Whether the Company can deduct ESI?

2. If so the rate of deduction is right?

3. If the Rate of deduction is right whether the basis amount is right?