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?
