We had existing unit at Perungudi and we are registered under ESI.
We have construction building for expansion at Ranipet during the year 2010-11. Two parties constructed our Building 1 person having ESI number and other does not have.
Now ESI Inspection officer asking us to pay esi for 40 % of Building Value @ 6.5% for not having esi
My query
1) Whether ESI applicable for construction of new building for Expansion.
2) Whether EsI Inspector is correct in asking us to pay ESI
Waiting for reply
Yes, being a Principal employer the Unit at Perungudi has to ensure that ESI & EPF are paid for all the workers engaged directly or indirectly. So even for construction work carried out through contractor ESI is payable. The ESI inspector is correct in asking the Unit to pay ESI. Probably the quantum of ESI alone can be argued upon based on the actual wages paid by Contractor to workers. You will be requiring support of your contractor to know the actual wages paid and to accordingly discharge your ESI liability.
CAclubindia
