I run a small architecture firm in Noida with a turnover of up to 30 lakhs. I have two employees who earn 20,000 per month each, a driver who is paid 10,000 per month, and a peon who receives 5,000 per month.
Applicability of EPF and ESIC
Would EPF and ESIC be applicable to my firm?
Guidance on TDS
Also, please provide guidance on TDS.
From India, Ghaziabad
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Applicability of EPF and ESIC
Would EPF and ESIC be applicable to my firm?
Guidance on TDS
Also, please provide guidance on TDS.
From India, Ghaziabad
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Firstly, please let me know the constitution of your establishment - is it Proprietary, Partnership, or a Private Limited Company? In the case of a Private Limited Company, the Directors are included in the definition of employees for determining the applicability of the ESI Scheme. Additionally, kindly provide the total strength of your firm, which should encompass both Regular Employees and those engaged through contractors such as Security, Housekeeping, etc.
Also, please inform me if you undertake contracts for comprehensive packages, including the design and construction of projects from A to Z. In such cases, all employees you engage will be considered employees of your firm as you will be employing them during your business activities. Furthermore, please clarify whether your Head Office is located in Delhi or if your operations are solely conducted from your Noida Office. This distinction is crucial as the laws governing the applicability of ESI differ between Noida (and Uttar Pradesh) and Delhi. However, the application of EPF laws remains consistent across Delhi, Noida, and other regions in India, except Jammu and Kashmir.
Your turnover holds no relevance in matters related to the application/compliance of Labor Laws or TDS under the Income Tax Act. I can offer guidance on ESI and PF matters, having dealt with these for the past 15-16 years. For TDS-related queries, I recommend consulting your Chartered Accountant for accurate advice. Regarding TDS, my understanding is that any individual making payments exceeding the limits specified in Section 194 of the Income Tax Act must deduct TDS as per the rates prescribed by the government, unless the payee is exempted by the Income Tax Department.
Regards, Amit
From India, Delhi
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26Also, please inform me if you undertake contracts for comprehensive packages, including the design and construction of projects from A to Z. In such cases, all employees you engage will be considered employees of your firm as you will be employing them during your business activities. Furthermore, please clarify whether your Head Office is located in Delhi or if your operations are solely conducted from your Noida Office. This distinction is crucial as the laws governing the applicability of ESI differ between Noida (and Uttar Pradesh) and Delhi. However, the application of EPF laws remains consistent across Delhi, Noida, and other regions in India, except Jammu and Kashmir.
Your turnover holds no relevance in matters related to the application/compliance of Labor Laws or TDS under the Income Tax Act. I can offer guidance on ESI and PF matters, having dealt with these for the past 15-16 years. For TDS-related queries, I recommend consulting your Chartered Accountant for accurate advice. Regarding TDS, my understanding is that any individual making payments exceeding the limits specified in Section 194 of the Income Tax Act must deduct TDS as per the rates prescribed by the government, unless the payee is exempted by the Income Tax Department.
Regards, Amit
From India, Delhi
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Thank you, Amit sir. However, I am working from my own home in Noida, Uttar Pradesh. It is a proprietorship company, and I am the sole in-charge. We have four staff members: two designers, one driver, and one peon. That's all. We are not engaged in construction, only design.
From India, Ghaziabad
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From India, Ghaziabad
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As mentioned by Mr. Pon, EPF is not applicable to you at this stage. With regards to ESI, Mr. Amit has asked for some details to conclude the applicability. Last but not least, please provide us with the salary structure, i.e., basic, HRA, conveyance, etc., to determine the TDS. TDS is not applicable for salaries below Rs. 1.80 Lac p.a., i.e., 15k p.m.
From India, Ahmadabad
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From India, Ahmadabad
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You are currently free from labor compliance. However, as your business grows, it is essential to stay cautious. Stay in touch with a knowledgeable Chartered Accountant (CA) who will assist you not only with the TDS aspect but will also guide you on various other statutory laws of the land which you may be unaware of due to your understandable ignorance in the matter. This assistance will prove invaluable in the future.
Regards,
Amit Kumar
From India, Delhi
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Regards,
Amit Kumar
From India, Delhi
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You are free from labor compliance at this point in time, but be careful when your business grows. Be in touch with a knowledgeable CA who will help you not only with TDS aspects but also assist you with various other compliances of the statutory laws of the land, which you may not know due to your understandable ignorance in the matter. This will help you immensely in the future.
Regards,
Amit Kumar
From India, Delhi
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Regards,
Amit Kumar
From India, Delhi
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Challans for EPF ESIC.zip
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EPF,ESIC & GRATUITY .xls