TaxTMI 
TaxTMI 
TaxTMI 
Dear All,
The deduction of ESIC contribution is the liability of Contractee if the contractor is not registered in ESIC scheme. Please Explain with example.
Regards
Pradeep kaushik
ESIC Liability on Contract Work
Pradeep Kaushik
Contractual Work ESIC Liability: Contractee Must Deduct Contributions if Contractor Isn't Registered. Refer Sections 40, 41, 42. The discussion addresses the liability for ESIC contributions in contractual work. If a contractor is not registered under the ESIC scheme, the responsibility for deducting ESIC contributions falls on the contractee. The reply clarifies that the principal contractor must ensure ESIC formalities are completed, and if the contractee complies with ESIC provisions, the principal employer should obtain relevant documentation from them. Sections 40, 41, and 42 of the ESIC Act are suggested for further guidance. (AI Summary)