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ESIC On contractor Labour

ramoliya vipul (student) (59 Points)

22 December 2008

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 ?

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12 Replies

Jitender (Chartered Accountant) (8724 Points)
Replied 22 December 2008

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

ramoliya vipul (student) (59 Points)
Replied 22 December 2008

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

Jitender (Chartered Accountant) (8724 Points)
Replied 22 December 2008

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

ramoliya vipul (student) (59 Points)
Replied 22 December 2008

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

ramoliya vipul (student) (59 Points)
Replied 22 December 2008

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

Sandeep Kuncham J (Chartered Accountancy) (26 Points)
Replied 18 May 2009

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

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 May 2011

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.

1 Like

Rajesh (Accountant) (31 Points)
Replied 16 December 2011

kindly provide complete details regarding registration of contractor under ESIC.

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

HKC (PROP.) (98 Points)
Replied 02 February 2012

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%.

s.senthil kumar (HR) (22 Points)
Replied 06 July 2013

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

Vikram Bhardwaj (Student) (41 Points)
Replied 31 July 2019

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