Is EPF and ESIC applicable on Sole Proprietorship firm - 4 employees

I run a small Architecture firm in noida, turn over upto 30 lacs, I have two employee get @ 20K/p.m each, driver takes 10K/p.m and peon takes 5K/-p.m.
Is EPF and ESIC applicable on my firm. also please guide for TDS.

EPF not applicable.-------------------------------------------
Pon

Dear Member,

First please let know the constitution of your establishment-is it Prop. Partnership or Pvt Ltd Co. Because, in Pvt Ltd Co case, the Directors are included in the definition of the employee for deciding the applicability of the ESI Scheme. Also, please provide the total strength of your firm which should include the Regular Employees as well as the employees you engage through a contractor viz. Security, House Keeping etc. Also, please let know if you also take contracts for complete package like including the Design as well as construction of the Project-from A to Z -in which case, all the employees you'll be engaging'll also be treated as your firms employees as you'll be employing them during the course of your business activity. Then also let know if you are having your Head Office in Delhi or you are running your activities as you explained from your Noida Office only. It is important because the law for applicability of ESI is different in Noida (for that matter in UP) and it is totally different in Delhi. There is no difference in the application of EPF Law in Delhi or Noida or for that matter anywhere else in India except J&K.

There is no relevance of your turnover in any matter related to the application/compliance of Labor Laws or for that matter TDS under the I Tax Act.

I can provide you guidance on ESI-PF matters as I am dealing in these matters for last 15-16 years but for TDS you may contact your Chartered Accountant for guidance. As far as my little knowledge in TDS is concerned, anyone who makes payment above the limits as specified in Section-194-under different sub-sections of the IT Act, he'll have to deduct the TDS as per the Rates prescribed by the Govt unless the other person is having some exemption from the I Tax Department.

Sincerely,

Amit

Thanks Amit sir, But i am doing from my own home at Noida, uttar pradesh. It is proprietorship company i am the whole sole in-charge. we have 4 stuff. 2 designer, 1 driver and 1 peon. that is all. We are not engage in construction, only design.

As mentioned by Mr. Pon EPF is not applicable to you at this stage, with regards to ESI Mr. Amit has asked some details to conclude the applicability. Last but not the least please give us the salary structure i.e. basic, HRA, conveyance, etc to determine the TDS. TDS is not applicable for the salary of below Rs. 1.80 Lac p.a. i.e. 15k p.m.

Dear Member,
You are free from labor compliance at this point of time but be careful when your business grows and be in touch with a knowledgeable CA who'll help you not only in TDS aspect but'll also help you various other compliance of other statutory laws of the land which you may not know due to your understandable ignorance in the matter. This'll help you immensely in future.
Sincerely,
Amit Kumar
QUOTE=astamhazra07@gmail.com;1978514]Thanks Amit sir, But i am doing from my own home at Noida, uttar pradesh. It is proprietorship company i am the whole sole in-charge. we have 4 stuff. 2 designer, 1 driver and 1 peon. that is all. We are not engage in construction, only design.[/QUOTE]

Dear Member,
You are free from labor compliance at this point of time but be careful when your business grows and be in touch with a knowledgeable CA who'll help you not only in TDS aspect but'll also help you various other compliance of other statutory laws of the land which you may not know due to your understandable ignorance in the matter. This'll help you immensely in future.
Sincerely,
Amit Kumar

Hi All,
I just wanted to know the procedure of opening a bank account of sole proprietorship. Actually I'm working from home & want to open a bank account of company name under sole proprietorship.
Regards
Nisha
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Dear Ms. Nisha
You can either open your bank account in your personal name (saving A/c.) or you can open a Current Account in Firms name. The documents will be same as that of personal account but only the Letter Head and the Rubber Stamp of the firm will be extra to be attached. Rest all the formalities are similar.

Dear Nisha,

I have only a few month ago opened a current Bank Account both under the Partnership as well as Proprietorship and learned that the process of opening of the account has changed a lot from earlier times. I suggest that if you are doing a business you should use current account only in the name of the firm-whether its Proprietorship or Partnership.

The Bank ask about the letter head of the firm, rubber stamp of the Partner/Prop., PAN of the Firm (if partnership) or Self-if Prop., one Govt. Registration of the Business like Sales Tax -if you are into the Trading or Service Tax No.-if you are into Service Industry or business relevant Govt Registration Proof or if there are none-then thye copy of Shop & Establishment Act Registration certificate of the firm which if you are in Delhi can be procured online without any cost/formalities etc. And finally the Introducer'll be required to introduce your firm to the Bank which'll be a current account holder of at least six month known to bank as well as to you. I'll also suggest that you should if you are not much into home delivery of the Banking Service you should opt for Govt Sector Bank rather than Pvt Sector Bank. While Govt Banks have a minimum balalnce requirement ranging from Rs.2500/- (OBC) to 5000(Allhabad Bank) and Rs.10000/- SBI, many Pvt Sector have the ceiling at 25000- ING etc. So it'll be a waste to park such a sum without any productive use.

Hope this'll help.

Sincerely,

Amit