Our company is registered under the ESIC & PF ACT in maharashtra We have taken work for Electricity Earthing in our factory, for the this work we have received bill from contractor labour + material cost including.
whether we have to pay the ESIC on his bills or not.
01 January 2022
ESIC payable only on your employees not on contractor employees. Contractor only pay ESIC on his employees. His bill of labour charges include such expenses.
But our consultant say , if contractor not registered under the ESIC act then the principal (Company) need to pay EISC on his labour charge portion amount. he said they work (contractor employee) on your site if if they work less then two/ three days.
You have to pay ESIC on his bill (Only on labour charges portion AT rate of 4%