ESIC Deduction - Pf Esic

nsiva
We have a contractor deputed for stenciling of drums at our plant.The contractor is not registered with PF or ESIC.He employs only 5 labours for the stenciling job.Should we deduct 6.5% of the amount from his bills and pay to ESIC?Are we entitled to do so?What is the correct procedure?
Can anybody help out please?
N.Sivakumar
RV PERUMAL
The Minimum Employees For Registration Is 20 And Above. So Need Not Register With Esic And P.f.
Vijay_kumar
You have not mentioned the staff strength of your company. If your total strength including the contractors 5 employees crosses 20 Nos. then your establishment will be covered under ESI Act.
nsiva
The company employs about 20 people but their salaries are above Rs.10000/- and hence we do pay any ESIC for the employees.
What we wanted to know is whether we should deduct ESI in the payments to the contractors who do not have ESIC regn.The contractor has only 5 people working under him.As a principle employer should we deduct ESI and remit on his behalf.The ESI authorities are not accepting the practice of deducting the ESI from the bills.
Please clarify.
RV PERUMAL
You Need Not Accept The Esic's Offer. If You Have Not Remitted On Behalf Of The Contractor From Their Bills. Then You Shall Pay From Your Own Pocket. Is It Possible? Otherwise, You Forced The Contractor To Take A Esic Number
Madan Mohan
We have a contractor deputed for stenciling of drums at our plant.The contractor is not registered with PF or ESIC.He employs only 5 labours for the stenciling job.Should we deduct 6.5% of the amount from his bills and pay to ESIC?Are we entitled to do so?What is the correct procedure?
Can anybody help out please?
N.Sivakumar
Dear N. Sivakumar
If your company more than 20 employee (i.e. covered under esic) you must be deduction 6.5 % under contractor payment and deposite to Bank in seprate challan mention it Contractor payment.
Madan Mohan
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