2. Because, the firms/employer are at liberty to book the expenses of wages or work done as per their sweet will, hence the inspecting authorities under said Act generally see the accounting heads of expenses to examine as to whether the compliance has been made properly by the firm/employer. If the inspecting authorities traces any omitted wages under any accounting/items heads viz. as indicated by you in your remarks, they will definitely note and make a record of such wages and claim contributions under said Act.
3. The accounting systems are so different that in some firms/units even the wages are found booked/entered in purchase heads.
The term “wages” has been defined u/s 2(22) of the Act in three parts as under:-
1. All remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled.
2. and includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or lay of.
3. and other additional remuneration, if any paid at intervals not exceeding 2 months.
However, it does not include:-
a. any contribution paid by the employer to any pension fund or provident fund or under ESI Act,
b. any traveling allowance or the value of any traveling concession,
c. any sum paid to the person employed to defray the special expenses entitled to him by the nature of his employment or
d. any gratuity payable on discharge.
The above is an extract from ESIC BARRACKPORE :: Always at your service
Most of the headings in original query(SL no 1-9) do not fall as elements of wages in my opinion.
ESI Inspection authorities mostly inspect following Heads
1) Salary & Wages Accounts
2) Repair & Maintenance expenses
3) Building Expences
4) Mostly Other Head also as mentioned above.
They people try to serach those expenses which are booked by accounts to different GL / Heads
If any work in which manapoers are enaged by the agency , and company / PE can not show their wages & ESI contribution , they may create liability and impose.
If some points are missing , please clear it