A company employed labour to do painting work. We have not received any challan towards ESI deposited by them. Whether it is duty of company to deposit ESI on behalf of them because the work is carried out in company.
Bill Amount of labour is Rs. 121000/-. In my opinion, the labour have not ESI account. If company is required to deposit ESI, how same will be calculated.
Please clarify and suggest for future.
Company Not Required to Deposit ESI Contributions for Unregistered Workers; No ESI Benefits Needed for Contractor's Employees. A company employed labor for painting work and is unsure if it must deposit Employee State Insurance (ESI) contributions on behalf of the workers, as no ESI challan was received. The labor bill totals Rs. 121,000, and it is believed the workers do not have ESI accounts. A response clarified that if the company is registered under ESI, it must deduct 6.50% of the total payment. However, since the workers are not registered under ESI, the company is not required to provide ESI benefits for the contractor's employees. (AI Summary)