Understanding ESIC Advance Contribution: How Can Labor Contractors Benefit from It?

hundareb@yahoo.com
I am going to register under the ESIC Act for a labor supplier, but there is an advance contribution of Rs 41,168. What is the future benefit of this advance contribution and how to utilize it?
korgaonkar k a
Dear Hundareb@Yahoo.Com,

Certain categories of employers, such as labour suppliers, labour contractors, security contractors, etc., are required to pay ESI contributions for the next 6 months in advance when they apply for registration under ESIS. This amount paid in advance is adjusted against the actual contributions payable thereafter in subsequent months. Unless this payment is made, an ESI code is not allotted.
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