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lakshminarayanan (CA (Final) Articleship)     19 April 2008

ESI notification attestation by a CA

In the recent ESI notification it has been mentioned that when the number of employees in an establishment exceeds 40 then an attestation from an chartered accountant is requried. i need a clarification in this regard.
1. For the purpose of calculating the number of employess ie 40 should those employees who are not covered under the act should also be take or not?
2. If an establishment has diffrent branches in diffrent state registered for ESI in the relevant states ESI regional office then for the purpose of filing return of contribution by the branches should the branch strength of employees should be taken or the overall employee strength of the establishment should be taken for the purpose of obtaining attestation from a chartered accountant
i wld be grateful to u if anybody cld answer the questions


 6 Replies

ram (hr )     20 April 2008

there is no such ammendment in the act that attestation shd be there from CA, moreover if a company has many branches and all the branches registered in the respective states and own a seperate number then while filing returns that branch strength details is enough, if a company having many branches in same state they can abtain single employer code and while the time of return it is mandatory to give all the strength details

Chitra Sharma (Executive - HR)     21 April 2008

This is the notification EMPLOYEES’ STATE INSURANCE CORPORATION PANCHDEEP BHAWAN: CIG ROAD: NEW DELHI NO.S-11/12/2/2007-Rev.II March 14, 2008 To, All the regional Directors/Jt. Director(I/c) ESI Corporation Regional/Sub-Regional Office Subject: Self-Certification by Employers in Returns of Contribution-regarding. Sir, In order to streamline and simplify the process of revenue enforcement and with a view to lay focus on coverage and registration of all coverable employees to enable them avail the benefits without hassle, the Corporation in its meeting held on 16.12.2007 resolved to amend Regulation 26 and Form-5 of the ESI (General) Regulation, 1950. A notification to this effect has been issued on 11.3.2008 (copy enclosed). Accordingly, Regulation Form-5 (Return of Contribution) has been modified. The salient features of amendments made in the Returns of Contribution are as under:- 1. Self-declaration by Employers regarding maintenance of records and registers, submission of Declaration Forms, distribution of TICs/PICs, employees engaged directly or through immediate employers and wages paid to the workers. 2. All the Employers employing 40 and more employees shall have to append a certificate duty certified by a Chartered Accountant, in the revised format of Returns of Contribution. 3. The Employers employing less than 40 employees will have to provide self-certification without any certification from the Chartered Accountants in Return of Contributions. The employers submitting the RCs in the revised format without self-certification/certification by the Chartered Accountant may also be accepted for the purpose of generation of live lists and deciding eligibility of the employees to the cash and medical benefits. Such RCs should be stamped ‘SELF CERTIFICATE NOT APPENDED’ in red link and are to be transmitted to Revenue Branches by the concerned Branch Offices for taking action on Defaulter’s as well as for Inspection purpose. These instructions will come into force w.e.f. 1.4.2008. You are, accordingly, requested to provide the copies of revised Returns of Contribution to all covered employers with a request to submit the Returns of Contribution for the period ending 31.3.2008 in the revised format. You are further requested to immediately get the Returns of Contribution printed in the revised format and keep it ready in the Branch Office/Regional Offices for distribution amongst the employers. There should not be a case of non-supply/non-availability of the Returns of Contribution in the revised format. You are also requested to give wide publicity in the newspapers through advertisements, Press Notes and by way of letters addressed to the prominent Employers’ Associations. This issues with the approval of IC/DG. Yours faithfully, (K. MISHRA) ADDL. COMMISSIONER (REV.) Encl: As Above. Copy to – 1. Heads of Divisions in Hqrs. Office. 2. All the SSMCs/SMCs. 3. All the jt. Directors/Dy. Director (Fin.) 4. All branch Officers / Branches in Hqrs. Office. EMPLOYEES’ STATE INSURANCE CORPORATION New Delhi, March 11, 2008 No.N-12/13/1/2008-P&D: In exercise of powers conferred by Section 97 of Employees’ State Insurance Act, 1948 (34 of 1948), the Employees’ State Insurance Corporation hereby makes the following Regulations to amend and Employees’ State Insurance (General) Regulations, 1950, the same having been previously publish in the Gazette of India, Part-III, Section 4 dated January 26, 2008, inviting objections/suggestions, if any, as required by Sub-Section (1) of the said Section, namely:- 1. (i) These Regulations may be called the Employees’ State Insurance (General) (Amendment) Regulations, 2008. (ii) These will come into force from 1st April, 2008. 2. In the Employees’ State Insurance (General) Regulations, 1950,- (1) In Regulations 26, after Sub-Regulation (1), the following Sub-Regulation 1(A) shall be inserted: “1(A) Every employer shall be required to submit details in Form 5 (Return of Contribution) with regard to employees engaged through Principal and Immediate Employers and their coverage, submission of Declaration Forms, distribution of Temporary Identification Certificated/Permanent Identity Cards and wages considered for payment of contribution and wages excluded for such purpose.” (2) The existing Form 5 shall be substituted with the new Form 5 which is enclosed. (A. J. PAWAR) INSURANCE COMMISSIONER REG. FORM-5 * Due Date for submission:- 12th May/11th November* Name of Branch Office______________ Employer’s Code No.__________ RETURN OF CONTRIBUTIONS EMPLOYEES’ STATE INSURANCE CORPORATION (Regulation – 26) Name & Address of the factory or establishment: _________________________________________ Particulars of the Principal employer(s) a) Name : _____________________________ b) Designation : ________________________ c) Residential Address : ________________________ Contribution Period from ______________________________to ________________________________ I furnish below the details of the Employer’s and Employee’s share of contributions in respect of the under mentioned insured persons. I hereby declare that the return includes each & every employee, employed directly or through an immediate employer or in connection with the work of the factory/ establishment or any work connected with the administration of the factory/ establishment or purchase of raw materials, sale or distribution of finished products etc. to whom the ESI Act, 1948 applies, in the contribution period to which this return relates and that the contribution in respect of employer’s and employee’s share have been correctly paid in accordance with the provisions of the Act and Regulations. Employees’ Share __________________ Employer’s Share __________________ Total Contribution _________________ Details of Challans:- Sr. No. Month Date of Challan Amount Name of the Bank and Branch 1. 2. 3. 4. 5. 6. Total amount paid: Rs _____________ I declare that (a) All the Records and Registers have been maintained as per provisions contained in ESI Act, Rules & Regulations framed therein: (b) During the period of return __________No. of Declaration forms have been submitted. (c) During the above period ___________No. of TICs have been received. (d) During the above period ___________No. of PICs have been received. (e) During the above period ___________No. of PICs have been distributed amongst the eligible IPs (f) During the above period ___________accidents have been reported to the concerned Branch Office. (g) During the period __________ No. of employees directly employed by us have been covered and a total wages of Rs. __________ have been paid to such employees. (h) During the period __________No. of employees directly employed by us have not been covered and a total wages of Rs. _________ have been paid to such employees. (i) During the period __________No. of employees employed through immediate employer have been covered and a total wages of Rs.__________ have been paid to such employees. (j) During the period ____________ No. of employees employed through immediate employer have not been covered and a total wages of Rs.__________ have been paid to such employees. (k) Following components of wages have been taken into consideration for the purpose of payment of contribution- 1. 2. 3. 4. 5. (l) Following components wages have not been taken into consideration for the purpose of payment of contribution- 1. 2. 3. 4. 5. The above mentioned information is based on records and any information if found incorrect will render me liable for prosecutions under provisions of ESI Act and action for recovery of contribution due along with interest and damages as per provision as of the ESI Act. Place____________ Signature & Designation of the Employer Date_____________ (with Rubber Stamp) CERTIFICATE BY CHARTERED ACCOUNTANT (To be submitted in case of employers employing 40 or more employees) Certified that I have verified the above return from the Records & Registers of M/s. ________________________________________ and found it to be correct. Signature & Seal Of the Chartered Accountant with Membership NO Important Instructions: Information to be given in “Remarks Column (No. 9)” i) If any I.P. is appointed for thee first time and / or leaves during the contribution period indicate “A______________________ (date)” and / or “L ______________________ (date)”. ii) Please indicate Insurance Nos. in ascending order. iii) Figures in Column 4, 5 & 6 shall be in respect of wage periods ended during the contributions period. iv) Invariably strike totals of Column 4, 5 & 6 of the Return. v) No overwriting shall be made. Any corrections, if made, should be signed by the employer. vi) Every page of this Return should bear full signature and rubber stamp of the employer. vii) Daily wages in Column 7 of the return shall be calculated by dividing figures in Column 5 by figures in Column 4 to two decimal places. For * CP ending 31st March, due date is 12th May For CP ending 30th September, due date is 11th November EMPLOYEES’ STATE INSURANCE CORPORATION Employer’s Name and Address ____________________________________ Employer’s Code No. ____________________________ Period from ____________ to _____________ Sl. No Insurance Number Name of Insured Person No. of days for which wages paid Total amount of wages paid (Rs.) Employee’s contribution deducted (Rs.) Average Daily Wages (Rs.) Whether still continues working Remarks * 1 2 3 4 5 6 7 8 9 TOTAL * Date of appointment and leaving the job may be given in remarks column. Signature of the Employer (FOR OFFICIAL USE) 1. Entitlement position marked. 2. Total of Col. 5 of Return checked and found correct/correct amount is indicated. 3. Checked the amount of Employer’s / Employee’s contribution paid which is in order/observation memo. Enclosed. Countersignature __________________ U.D.C. Head Clerk Officer Branch

Guest (n/a)     22 April 2008


ram (hr )     22 April 2008

thanks chitra for the news, but yet i didnt receive any formal notice from the concerned dept about this ammendment, for latest amendments other than the esi corp site what are all other sites from which we can source the information, kindly let me knw regards ram

Chitra Sharma (Executive - HR)     22 April 2008

see if you can find information on www.cainindia.org but for the crop wedsite of esi is best to find the details. www.esic.nic.in

SANJAY DIXIT (Advocate)     23 April 2008

Thanks for the info. Nice work.

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