Esi Deduction Of Contractor

Dear All,
Now days its ESI is online, i need to know how to make the payment of the ESI amount deducted from the contractor bill, The contractor is having 2-3 people with him, and as when required he comes with those people and complete the job and leaves (Painting and repairs work of the building). He has approached ESI office for registration ,but the ESI office is refusing to register as he does not have minimum 10 persons. Please advise how to make the ESI amount deducted from his bill need to be paid online.
Regards
Prabhakar

Dear Mr Prabhakar
How are you able to manage PF coverage ?. In case if you require PF and ESI coverage for the contract workmen, we can cover them in our code and pay the PF and ESI contribution. Pl contact.
Regards
N Nataraajhan, Sakthi Management Services (HP : + 91 94835 17402 ; e-mail : [Login to view]).

Sir(s),
1. Compliance under ESI Act, 1948 and rules/regulations framed thereunder is to be made on the basis of "wages" paid to the employees and not on the basis of "bill" of the contractor.
2. You can advise the contractor/immediate employer to deposit the contribution under said Act on the basis of Wages Register in respect of his own employees. The contractor is supposed to maintain all such records viz. Attendance and Wages registers etc. of his own employees. You must keep one copy of the said records of contractor with your main establishment so that as an when compliance is verified by the concerned department including EPFO etc., then you can show the same to the authorised officer.

Dear Prabhakar ji,
First of all, it is your responsibility to see that all the coverable employees under ESIS entering in your premises whether they are directly employed by you or not, are covered under the ESIS. If any coverable employee whether directly employed by you or through contractor is not covered under ESIS, you are liable.
If the contractor is not having ESI code allotted to him, you have to cover the employees of such contractor under your code and make the remittance of contribution accordingly through your code toghether-with your employees. No saperate challan or multiple challans permitted under ESI alike PF.