We provide commission to our sales persons except salary. I have a doubt for its will come under ESI or EPF or TDS. Kindly guide me
From India, Coimbatore
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From India, Coimbatore
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Dear Anony,
Any kind of commission or incentive falls under the purview of tax; hence, you would have to consider these earnings as taxable income. PF is calculated on Basic (+DA), while ESI is calculated on gross; hence, any earnings in the form of commission or incentive will not affect the ESI or PF deductions.
Regards,
Rahul Chhabra
From India, Delhi
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157Any kind of commission or incentive falls under the purview of tax; hence, you would have to consider these earnings as taxable income. PF is calculated on Basic (+DA), while ESI is calculated on gross; hence, any earnings in the form of commission or incentive will not affect the ESI or PF deductions.
Regards,
Rahul Chhabra
From India, Delhi
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Dear Rahul sir, It will surely hamper ESIC if getting paid in the salary. As it will be a part of gross salary and ESIC contribution is based on gross.
From India, Pune
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From India, Pune
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Dear Aniket,
Please treat incentives/commissions or reimbursements separately from gross for the computation of ESI. This is a wrong practice. This will push some of the eligible ESI members to be out of ESI for the months they earn an incentive, etc.
Regards,
Rahul Chhabra
From India, Delhi
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Please treat incentives/commissions or reimbursements separately from gross for the computation of ESI. This is a wrong practice. This will push some of the eligible ESI members to be out of ESI for the months they earn an incentive, etc.
Regards,
Rahul Chhabra
From India, Delhi
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Dear Rahul Sir, no, that will not happen as in common practice you don't consider the eligibility of ESIC on commission or incentive, but you have to pay the contribution on the actual gross.
Example of ESIC Calculation
For example, if a person has a gross salary of 20,000/- in the normal course, and in a month he gets a commission of, say, 10,000, then the gross salary calculates to be 30,000/-. In such a case, ESIC must be deducted on 30,000/-. Just because an employee got a commission in one month doesn't mean that you should opt that employee out of ESIC.
From India, Pune
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Example of ESIC Calculation
For example, if a person has a gross salary of 20,000/- in the normal course, and in a month he gets a commission of, say, 10,000, then the gross salary calculates to be 30,000/-. In such a case, ESIC must be deducted on 30,000/-. Just because an employee got a commission in one month doesn't mean that you should opt that employee out of ESIC.
From India, Pune
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