1.

Explain The Procedure To Calculate Provident Fund, Esi, Vat And Sales Tax.

Answer»

Provident Fund: Provident fund is CALCULATED at 12% on the basic salary which is deducted from employee's salary plus 12% on the basic is contributed by the employer. So, the AGGREGATE 12% + 12 % is remitted to the Provident Fund Department.

ESI: STANDS for Employee State Insurance and is calculated at 1.75% on the gross salary of the EMPLOYEES whose salary is below Rs. 10000 per month and employer contributes 4.75% on the gross salary of the employee and aggregate 1.75% + 4.75% is remitted to the ESI Department

VAT: VAT percentage is 1, 4, 12.5%. It is a tax which is charged on the basic VALUE of the product by the seller from the buyer and the same is remitted to the Sales Tax Department.

Sales tax: Same as VAT

Provident Fund: Provident fund is calculated at 12% on the basic salary which is deducted from employee's salary plus 12% on the basic is contributed by the employer. So, the aggregate 12% + 12 % is remitted to the Provident Fund Department.

ESI: Stands for Employee State Insurance and is calculated at 1.75% on the gross salary of the employees whose salary is below Rs. 10000 per month and employer contributes 4.75% on the gross salary of the employee and aggregate 1.75% + 4.75% is remitted to the ESI Department

VAT: VAT percentage is 1, 4, 12.5%. It is a tax which is charged on the basic value of the product by the seller from the buyer and the same is remitted to the Sales Tax Department.

Sales tax: Same as VAT



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