15 April 2013
I would like to know when exactly a Contractor has to deduct ESI for the work done by sub-contractor when the Subcontractor is not registered for ESI.Also , when a principal subcontractor who is not registered, says his subcontractors are registered with ESI and paying the amount . What is to be done by the Contractor.
To illustrate
Party A - contractor (regd with ESI) Party B - Sub Contractor (Not regd with ESI) Party C - B's SC (regd with ES0
There is no agreement between A and C. When B raises invoice , Should A deduct 6.5% for ESI?
16 April 2013
I think there is a provision which states that the principal shall ensure that the provisions of ESI are complied with. In the case of contract workers , the employer has to deduct and pay. Need not be only for salaried or permanent employees. Pl check
CAclubindia
