Esi applicability
Shruti
(Querist) 15 November 2012
This query is : Resolved
I am in a IT company.We have an online solution to which we have subscribers.Now, we also have a scheme wherein one can be our partner, be it a student, a housewife or any woking person, and subscribe customers for our online solution against which we send monthly payouts in cheques to the partners.Our last CA had booked all these payouts under the salary head since the last 5 years.We have changed our auditor this year only. We also have an ESI no. for our in house employees. This was applied 2 years back and their ESI has been paid till Mar,2012. Yesterday someone from ESI visited our office and asked for all BS since last 5 yrs. Our current auditor says that since the amount has been booked as salaries, we shall have to bear penalties for that. While all the people who were working for us were working from their home from various states in India and also from outside India. Can you pls suggest what needs to be done now?
Sudhir Kumar, Advocate
(Expert) 13 January 2013
ESI Act provides that :-
(4) It shall apply, in the first instance, to all factories (including factories belonging to
the government) other than seasonal factories:
4[PROVIDED that nothing contained in this sub-section shall apply to a factory or
establishment belonging to or under the control of the government whose employees are
otherwise in receipt of benefits substantially similar or superior to the benefits provided
under this Act.]
(5) The appropriate government may, in consultation with the Corporation and 5[where
the appropriate government is a State Government, with the approval of the Central
Government], after giving six months’ notice of its intention of so doing by notification
in the Official Gazette, extend the provisions of this Act or any of them, to any other
establishment or class of establishments, industrial, commercial, agricultural or otherwise
:
6[PROVIDED that where the provisions of this Act have been brought into force in any
part of a State, the said provisions shall stand extended to any such establishment or class
of establishments within that part if the provisions have already been extended to similar
establishment or class of establishments in another part of that State.]
4[(6) A factory or an establishment to which this Act applies shall continue to be
governed by this Act notwithstanding that the number of persons employed therein at any
time falls below the limit specified by or under this Act or the manufacturing process
therein ceases to be carried on with the aid of power.]
You can get the copy of notification under RTI which covers your industry in ESI Act.
