Esi act - deductibility for contracts
This query is : Resolved
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?
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?
15 April 2013
ESIC, as per my understanding, is deducted from the salary of an employee and not from the payments made to contactor / sub contractors.
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
16 April 2013
I've already answered your question that was based on 'A', 'B' & 'C'.
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