Can I Submit ESIC Returns for Months Before Receiving My Registration Code?

Dear Sir,

I received the ESIC registration code in February 2010, and I have been running my company since October 2009. ESIC has been deducted since October 2009. Can I now submit the ESIC return from October 2009 to March 2010, as I received the ESIC code in February 2010?

Regards,
Parveen

Hi,

If you have not deposited the ESI contributions, you have to deposit the same immediately from October 2009 to February 2010, adding employer contributions at 4.75% via ESI challan in the bank. Keep the triplicate and quadruplicate copies of the challan with acknowledgment from the bank. After paying the salaries for March 2010, you have to deposit the ESI contributions before the 21st of April 2010.

You have to register your employees under ESI and obtain ESI identity cards by submitting Declaration forms filled out by the employees to your ESI local office. Fill out the ESI returns in Form 5 for the period from October 2009 to March 2010 and submit them to your ESI local office with quadruplicate copies of ESI paid challans before the 12th of May 2010.

Opinions/comments requested.

Regards,
erv

Dear Parveen,

If you had deposited your ESIC challan from October 2009 until March, then you should fill the ESIC return under the ESIC Act. If you have more than 40 employees, it should be approved by a Chartered Accountant. If you have fewer than 40 employees, it can be done through the employer.

Payush

Dear Sir,

Please tell me about these questions:
01. What is the basic salary if the Gross Salary of Employees is 5000 and they are semiskilled workmen?
02. How much should be deducted for EPF contribution as per the EPF law?

Thanks in Advance

Dear Ashok,

Rs. 2500 of basic, and for the same amount, I mean to say 2500 only.

Regards,
Raghu

Dear Parveen,

If you have deposited the contribution, then it's okay. If it is not so, then immediately deposit the contribution for both shares, collect the challans or certificates from the bank, and file the half-yearly return before 11th May.

Thank you.

Hi Erv,

As you mentioned, your company was established in Oct '09, and you obtained the ESI code number in Feb '10.

1. Have you obtained copies of the correspondence exchanged with ESI authorities to allocate the ESI code to your company since Oct '09?
2. Have you deducted ESI contributions from employees from Oct '09 until now?
3. Please pay the total amount of ESI contributions (Employee: 1.75% + Employer: 4.75%) from Oct '09 to Feb '10 in a single challan. Include all details of employees, wages, past correspondence, and submit the challan in person to the ESI local office manager. Explain the situation for the delayed submission.

I hope the above is clear.

Thanks & Regards

Dear Rajesh,

I want to know if an employee working as a tailor with a gross salary of 5000, a basic salary of 4100, and an EPF contribution deduction of the same amount, 4100 rupees, is acceptable. This is because in June 2005, I heard a notification stating that basic wages cannot be less than the minimum wages and EPF contributions must align with this.

I would appreciate hearing the views of all my seniors on this matter.

Thanks and Best Regards

Dear Praveen,

There are many suggestions that may be helpful, but one point is particularly crucial. In every C-11 (coverage letter), there is a mention of a provisional date. This means that from the coverage date or when you submitted Form-01, you will need to provide an exact date when informing the department that you are ready to cover 20 or more employees. In my opinion, it is essential to deposit the return according to your C-11 provisional date. Any excess ESI deposited can be adjusted in the following month. If you believe your coverage was initiated earlier, ensure to retain your challan for F.D.C.

For more details, you can contact me at kumaresic@rediffmail.com or on +91-9811747078.

Dear Mr. Praveen,

Please make payment to the ESI department for the period from October 2009 to March 31, 2010, in a consolidated challan. Before that, you need to calculate employee/employer contributions based on gross earnings using Form 7. Subsequently, you should prepare Form 5, which is the return of contributions. This form should be submitted, most probably, in the first week of April 2010.

Regards,
ps.toor@yahoo.co.in

Yes, you are supposed to submit the returns for the Contribution Period Ended, i.e., CPE 03/10 covering the period from 10/09 to 03/10, before 12th May 2010. Failing to do so, you can be prosecuted for non-submission of returns under section 85 of the ESI Act, 1948. For any queries, please write to vsyamprasad@yahoo.com.

Mr. Praveen,

I guess now ESI rules have changed while you are getting your ESI code. When you apply for the ESI code, they will definitely collect a 6-month check-in advance deposit of your ESI amount. I am shocked that they have not collected from you.

Secondly, when you are depositing the ESI challan, you have to submit the fine too. Since I have applied for the code for my contractors many times, they definitely ask for a 6-month DD in advance, which will be adjusted later. So, check the documents properly.

Ratikanta Rath
HR Manager

Dear Mr. Praveen,

As per our discussion:

1. You have been running your organization since October 2009.

2. You have already deducted the employee's share of ESI but have not yet deposited it due to the late receiving of the ESIC Code for the Organization from the ESIC office. You received the code in February 2010.

3. Now, you want to submit your ESIC returns from October 2009 to March 2010.

Do not worry, my friend. Start following the ESIC rules from today onwards as you received the ESIC code late from the ESIC office, even though you applied for it in the same month you started your business and began deducting your employees' shares.

Please refer to the comments by Mr. Vadlamani SR and Mr. ERV. They have provided clear explanations.

The ESIC limit is Rs. 10,000 as the gross salary of the employee. Ensure that the employee falls within this limit.

For return submission, use the following forms:

1. Form 5 - Return of contribution
2. Form 32 or Form 7 - Includes employee details of contribution
3. A copy of all monthly challans from October to March (since you received the code in February, your monthly challans are pending for deposition) - deposit all the challans with the March contribution or before submission.

Note: You need three copies of the above - two for the ESIC office and one for your office records.

Regards,

Chaitanya Negi

Email: chaitanya.negi@gmail.com

Dear Sir,

Can we transfer PF account if we switch over to another company? If it's possible, what are the ways? Please explain. I also have another doubt - can we get individual annual statements for every employee? What are the ways to obtain that?

Dear Ashok,

As of today, if the basic is Rs. 4100/- and the gross is up to Rs. 6500/-, PF will be deducted on the gross.

Am I right or not?