New Accountant Needs Quick Help Understanding PF, EPF, ESI, and Sales Tax for Interview

Dear Sir,

Can you please suggest me about the below queries?

1. Basic knowledge about PF, EPF & ESI.
2. Rates of the above (both Employee & Employer).
3. Basic rules and regulations (Maximum 5 or 6 important points).
4. About sales tax (both central & local).

Actually, I am a fresh accountant, and I have an interview today. So kindly help me and give me some knowledge about the above.

I am waiting for your reply.

Thanks,
Sambit

Hi Sambit,

ESI is contributed from both sides, by the Employee as well as the Employer. It is calculated based on the Gross salary per month, with a maximum ceiling of 10,000 Rs. per month. The contributions from both sides are as follows:

Employee Side - 1.75% of gross per month. So, if an employee's gross salary is 8,000 per month, the ESI contribution would be 8,000 * 1.75% = 140 Rupees.

Employer Side - 4.75% of gross per month. Therefore, the ESI contribution from the employer would be 8,000 * 4.75% = 380 Rupees.

Regards,
Amit Seth

Hi Sambit,

To know about PF and EPF, please go through the link provided below.

Regards,

Amit Seth

Hi Mueen84,

You can get basic information on PF & ESI from a payroll angle at GreytipOnlineWiki: PF FAQs. Hope this helps.

Regards,
Girish

Hello All,

I want to ask one question about EPF and ESI. Are there any alternatives or rules to avoid EPF and ESI in organizations with more than 20 employees? Please suggest something as soon as possible.

Waiting for a reply!

Hi Sambit,

Since you are going for an interview, I believe the following information will be helpful. Fundamentally, the Provident Fund is a retirement benefit for employees, while ESI provides medical insurance facilities. Both schemes are social benefit schemes governed by central acts. The Government of India mandates that in the absence of a comprehensive social security system in India, employers must provide these benefits to employees subject to conditions.

Best of luck,
Vineet
eVetan.com