Commission to our sales persons except salary - will come under ESI/EPF or TDS?

tfc-hr
We provide commission to our sales persons except salary. I have a doubt for its will come under ESI or EPF or TDS.
Kindly guide me
Rahul Chhabra
Dear Anony,
Any kind of commission or incentive falls under the purview of tax; hence you would have to consider these earnings as taxable income.
PF is calculated on Basic (+da); while ESI is calculated on gross; hence any earnings in the form of commission or incentive will not hamper the ESI or PF deductions.
Regards
Rahul Chhabra
Aniket Pathak
Dear Rahul sir,
It will surely hamper ESIC if getting paid in the salary. As it will be a part of gross salary and ESIC contribution is based on gross.
Rahul Chhabra
Dear Aniket,
Please treat incentives/commissions or reimbursement separately from gross for the computation of ESI. This is a wrong practice. This will push some of the eligible ESI members to be out of ESI for the months they earn an incentive etc.
Regards
Rahul Chhabra
Aniket Pathak
Dear Rahul Sir,
No that will not happen as in common practice you don't consider eligibility of ESIC on commission or incentive but you have to pay the contribution on actual gross.
Example: If a person have gross salary 20000/- in normal course. If in month he gets commission of say 10000 then the gross salary calculates to be 30000/- in such case ESIC must be deducted but, on 30000/-
just because employee got commission in one month doesn't mean that you should opt that employee out of ESIC.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute