ESIC On contractor Labour

A person who taking the labours through a contractor and paying the total labour charges to Contractor is he liable for deducting the Esic on that payment (contractor Not deducting Any ESIC on his labour

1) if yes Then how  at what rate ESIC should be deducted?

2) How to disclose under Tax audit report? UNder which close?

3) As auditor ,how i will check whther prperly ESIC deducted Or not ? 

Replies (12)

esi will be deducted @ 6.5%. & u can verify it  the payment to contractor & reconcile the same with esi return for its deduction.

  hi!  Jitender

 

is it 6.5% applicable on entire payments made to the contrator.and let me know under which close it required to be disclosed under form 3CB

it is applicable on entire payment , however it is applicable on 25% in case of work  contract.

if you are having material on it please send me or give me relvent refrence so that i refer it

if you are having material on it please send me or give me relvent refrence so that i refer it

Dear all,

I would like to know the situations/circumstances when ESI is to be deducted on Labour contracts

Can I have some reference for the above pls

Sandeep

in case the contractor is not covered by ESI and the factory of principal employer is covered under the act, then these employess would be deemed to be covered under principal employer, so the principal employer will deduct 6.5% ( 1.75% employee + 4.75% employer) and pay to ESIC.

kindly provide complete details regarding registration of contractor under ESIC.

Whai is the concept of works contract  for this purpose?????????

Contract ESI contribution depend on Bill. If  material and labour mention separately in the bill than ESI paid on labour part only @ 6.5% otherwise as per works its will be 25-30 % on total bill's 6.5%.

if the contractor supplying man power (ladies& gents) to principle employer for packing section.  in the bill can i deduct esi contribution in the total bill

how many percentage can i deduct in the total bill?

how many percentage contribution deduct

it is legal or illegal

please advice

 

Sir, one of our college employed some labor for construction or other work during the financial year 2018-19 college is not registered in esic act can we pay esi and get registered them self. 

is there is any other mode of payment without registration and please provide the notification regarding payment of esi by unregistered person in this regard.

 

Thanks 

Vikram Bhardwaj

vikrambhrdwj4 @ gmail.com

  

Please give any reference or circular for above rules.

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