ESIC On contractor Labour


ramoliya vipul (student)     22 December 2008

ramoliya vipul
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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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Jitender (Chartered Accountant)     22 December 2008

Jitender
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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)     22 December 2008

ramoliya vipul
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  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

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Jitender (Chartered Accountant)     22 December 2008

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

ramoliya vipul (student)     22 December 2008

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

ramoliya vipul (student)     22 December 2008

ramoliya vipul
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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)     18 May 2009

Sandeep Kuncham J
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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

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

U S Sharma
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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.

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Rajesh (Accountant)     16 December 2011

Rajesh
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kindly provide complete details regarding registration of contractor under ESIC.

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

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HKC (PROP.)     02 February 2012

HKC
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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%.


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