#ESI contribution

The ITAT Delhi has ruled that employer contributions to PF and ESI must be deposited by the 15th of the month in which salary liability arises, not when the salary is actually paid. This clarifies a widespread compliance ambiguity and impacts all businesses delaying deposits beyond the liability month, even if payroll is processed later. Failure to comply now triggers automatic disallowance under Section 36(1)(va), regardless of eventual payment timing.

Bombay High Court holds that Section 93-A of the ESI Act does not impose liability on original employers for contributions during unauthorized third-party occupation post-lease expiry.