Sole Proprietor Firm Questions- Plz Help!!!

I run a small web development firm. My firm is a sole proprietor firm and have 4-5 employees. My yearly turnover is less than 20 lakhs.
I have the following question please answer them -
1. What is PF, ESI etc..? Is it applicable on my firm ? If yes how to proceed?
2. I have 3 programmers, their gross salary is 20k per month each. Do I have to dedcuct TDS ? If yes, What to do if any employee is not interested in TDS deduction?
3. While hiring new employees do I have to check their previous employers documents like form 16 etc.. ?
Thanks

Your firm is not applicable Under PF & ESI Act.
For PF ( Minimum employees = 20)
For ESI ( When 20 employees become whose Gross salary is less then 10000).
For TDS Kindly ask to Your C.A.
For new Employee, check there experience letter, certificates etc.
Tell me your name, place by mail to [Login to view]

Hi,
EPF is applicable if your firm has m ore than 20 employees.
ESIC is applicable if your firm has more than 10 employees.
Labour welfare fund is applicable if you have 5 or more employees. Most people are not aware of this and you do not need to worry about this as well.
TDS is deducted only if your firm is coming under Audit (ie. if your firm has a turnover of more than 40 lakhs). As a sole proprietor, you can show income tax dept. that you have more employees, each having a salary of around Rs.10,000/-
So regarding all the above, you do not worry and concentrate on your core activities.
However, if you are hiring any body, Form16, will give a clear picture of the salary the candidate was drawing. Background check like photographs, degree/ school certificates, photo id, proof of residence etc. are needed while you hire any employee.
Hope the information will help you.
Siva

Yes, really good discussion,
i have worked in proprietorship, and agree in concentrating in core activitites. TDS etc. can be cleared in form 16 at the end of the year.

myself running own boutique my annual turnover is below 20 lacs, no. of worker are 15
please give me a help for registration of my boutique name under sole propriotorship

Very good discussion has taken place here. infact the info provided by Mr.Siva against the question of Shrey is absolutely right.
I would like to add to this that a proprietorship concern need not deduct Tax at source (i.e. TDS) if the payment is being made to another individual. And as a fact all employees are individuals only. Hence no TDS is attracted.
YRRao
8-6-10

i have started my own properioter firm and total number of emplyooe are 4.but my problem is that i will pay 1 lack salary to 1 emplyooe nd remaininh three is just 40000. so can you please advise me how can i prapare salary slip and this employee is in under of tds?
what amount of tds i have to deduct when i have do the salary?

Sir i have one question regarding sole properiter firm which have 70 plus employee but there is no going through on labor act like pf,esic,pt etc and that unit is manufacutre unit
but still no any kind of registration on labor act
is it mandatory to registaration??/
pf,esic,pt?
leave policy?
nothing is renning in this firm?
can governemnt take any action against in it??? or not???

Hi,
As your firm employed 70 plus employees better you start following the applicable statutory commitments (PF,ESI). Seek the help of a Consultant who will assist you in Registration process and also to streamline the operation of the firm.