Hi, I started a sole proprietorship in May 2017, which focuses on web designing and data entry. Initially, there were 10 contract workers who worked part-time; hence, I registered for ESIC. After 3 months, the business didn't pick up, and the number of contractors decreased to 3 in August 2017. Also, I got a job in the USA in August 2017 and moved there. I am still trying to develop the business online.
I didn't pay the contributions from August 2017 to March 2018 as I was not aware that contributions had to be made even if the number of employees is less than 10.
I have received a C-18 Adhoc notice from ESIC for not paying contributions, and they are proposing some arbitrary amount as dues. Also, I am asked to attend a hearing. Since I am out of the country, I cannot attend the hearing. Additionally, I don't have any proper representatives back home who can deal with this effectively.
If I pay the contributions due from August 2018, will it solve the problem? Is it mandatory to attend the hearing even if I pay the pending dues?
I request your advice.
From United States, Charlotte
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1I didn't pay the contributions from August 2017 to March 2018 as I was not aware that contributions had to be made even if the number of employees is less than 10.
I have received a C-18 Adhoc notice from ESIC for not paying contributions, and they are proposing some arbitrary amount as dues. Also, I am asked to attend a hearing. Since I am out of the country, I cannot attend the hearing. Additionally, I don't have any proper representatives back home who can deal with this effectively.
If I pay the contributions due from August 2018, will it solve the problem? Is it mandatory to attend the hearing even if I pay the pending dues?
I request your advice.
From United States, Charlotte
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Contact ESI office. Gather your group number. Pay your dues. Post the payment receipt along with a letter mentioning your inability to travel to the respective ESI office mentioning the group number
From India, Chennai
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From India, Chennai
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Thank you for the response. Can you please guide me with the following questions:
1) Can I pay the dues online on the ESIC website?
2) Is the group number the same as the Employer's Code Number?
3) Can I send the payment receipt to the ESI office through email? Will they accept that?
From United States, Charlotte
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1) Can I pay the dues online on the ESIC website?
2) Is the group number the same as the Employer's Code Number?
3) Can I send the payment receipt to the ESI office through email? Will they accept that?
From United States, Charlotte
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Understanding C-18 in ESIC
C-18 in terms of ESIC pertains to "Interest" payable for delayed contributions. Further, as per your information, "Damages" are also payable for the above period. The intimation may be issued in the future. If you have wound up or closed your operations, the closure intimation shall be communicated to the respective ESIC office along with the payment of the prescribed administrative charges (if any, as such in EPF).
Paying Dues Online
You can pay the dues online using the "Recovery/Defaulter Challan" option available under the Employer section in your ESIC establishment login. You can select the appropriate header - "Defaulter List" and you will see a drop-down list, where you have the option C-18 Adhoc. After selecting it, the system will show you the exact amount to be paid. Verify the amount with the one demanded by ESIC in its notice, and you can make the online payment.
Communicating with ESIC
You can forward a letter to ESIC with the payment receipt and briefly explain.
Regards, M. Harishkumar.
From India, Tiruchengode
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C-18 in terms of ESIC pertains to "Interest" payable for delayed contributions. Further, as per your information, "Damages" are also payable for the above period. The intimation may be issued in the future. If you have wound up or closed your operations, the closure intimation shall be communicated to the respective ESIC office along with the payment of the prescribed administrative charges (if any, as such in EPF).
Paying Dues Online
You can pay the dues online using the "Recovery/Defaulter Challan" option available under the Employer section in your ESIC establishment login. You can select the appropriate header - "Defaulter List" and you will see a drop-down list, where you have the option C-18 Adhoc. After selecting it, the system will show you the exact amount to be paid. Verify the amount with the one demanded by ESIC in its notice, and you can make the online payment.
Communicating with ESIC
You can forward a letter to ESIC with the payment receipt and briefly explain.
Regards, M. Harishkumar.
From India, Tiruchengode
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Thank you for your inputs, Mr. M. Harishkumar.
The C-18 ad hoc notice showed an amount that was very high. The actual amount is 10 times less than that. Therefore, I have paid the actual contributions for the period Aug 2017 to Mar 2018.
I have not made a payment under "Recovery/Defaulter Challan" -> "Defaulter List."
Do I need to wait for any intimation for interest and damages to pay them, or can I pay that online now?
From United States, Charlotte
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The C-18 ad hoc notice showed an amount that was very high. The actual amount is 10 times less than that. Therefore, I have paid the actual contributions for the period Aug 2017 to Mar 2018.
I have not made a payment under "Recovery/Defaulter Challan" -> "Defaulter List."
Do I need to wait for any intimation for interest and damages to pay them, or can I pay that online now?
From United States, Charlotte
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Addressing ESIC Contribution Issues
The reason behind this heavy amount is that it constitutes "Actual contribution payable for the period: Aug '17 to Mar '18 (+) interest payable @ 12% per annum." If possible, you can nominate a legal advisor to appear for a Personal Hearing at ESIC with a letter requesting acceptance as an Authorized person on your behalf in all proceedings. During a Personal Hearing, you can convey practical difficulties, and there may be chances for reconsideration.
It is not advisable to wait for intimation from ESI for Damages. Even today, establishments that have defaulted on contributions before ten years are still receiving notices asking to remit damages and interest for the entire period. It is best to address this issue promptly.
From India, Tiruchengode
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The reason behind this heavy amount is that it constitutes "Actual contribution payable for the period: Aug '17 to Mar '18 (+) interest payable @ 12% per annum." If possible, you can nominate a legal advisor to appear for a Personal Hearing at ESIC with a letter requesting acceptance as an Authorized person on your behalf in all proceedings. During a Personal Hearing, you can convey practical difficulties, and there may be chances for reconsideration.
It is not advisable to wait for intimation from ESI for Damages. Even today, establishments that have defaulted on contributions before ten years are still receiving notices asking to remit damages and interest for the entire period. It is best to address this issue promptly.
From India, Tiruchengode
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