ramoliya vipul (student) 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 ?
U S Sharma (email@example.com) 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.