26 February 2011
PF : Provident fund is calculated @ 12% on the basic salary, which indeed is deducted from Employee's salary and the same plus 12% on the basic is contributed by the employer. So the aggreate 12% + 12% is remitted to the Provident fund Department
ESI : Employee State Insurance is calculated at 1.75% on the gross salary of the employees whose salary is below Rs. 10000/-permonth (w.e.f 2008) and Employer contributes 4.75% on the gross salary of the employee and the agreegate 1.75% + 4.75% is remitted to the ESI Department
VAT : VAT percentage is 1, 4, 12.5%. It is a tax which is charged on the basic value of the product by the seller from the buyer and the same is remitted to the Sales Tax Departement. for eg if the product value is Rs. 100 and the tax applicable is 4%, in such case a bill is raised for Rs. 104.
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