Hello Auditor

How to handle show cause notice from ESIC?

Understand the Contents of the Notice

  • Read the notice carefully to understand the nature and reason for issuance.
  • Identify the section of the ESIC Act under which it has been issued.
  • Note the deadline for submission of your reply.
  • Check the details such as period of default, amount involved, or documents missing.
  • Confirm whether it is related to payment delay, incorrect filing, or inspection findings.

Gather Relevant Records and Evidence

  • Collect monthly returns, challans, and contribution payment proofs.
  • Prepare employee records and wage registers as supporting evidence.
  • Retrieve correspondence or earlier replies submitted to ESIC.
  • Highlight any technical or clerical errors that may have caused the issue.
  • Organize all documents in the order mentioned in the notice.

Draft a Formal Reply to the Notice

  • Use your official letterhead to draft the reply.
  • Mention the reference number and date of the show cause notice.
  • Address each point raised in the notice clearly and specifically.
  • Attach documentary proof for all your explanations or clarifications.
  • Sign the letter by the authorized person and include their designation.

Submit and Acknowledge Your Response

  • Submit the reply within the deadline to the concerned ESIC regional office.
  • File it physically or via email as instructed in the notice.
  • Take an acknowledgment if submitting by hand or save email delivery confirmation.
  • Keep a copy of the reply and supporting documents for your records.
  • Follow up with the department to confirm the response has been accepted.

Follow Compliance or Legal Guidance if Needed

  • If asked to pay pending dues or penalties, verify calculations before payment.
  • Seek professional advice from a legal or ESIC consultant if the notice is complex.
  • Attend any hearings or clarification meetings if called by the ESIC officer.
  • Avoid ignoring or delaying the response as it may lead to prosecution.
  • Maintain regular compliance to prevent future notices.

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