PF: Provident fund is calculated @ 12% on the basic Salary, which indeed is deducted from Employee's salary and

The same plus 12% on the basic is contributed by the Employer. So the aggregate 12% + 12% is remitted to the Provident fund Department ESI: Employee State Insurance is calculated at 1.75% on The gross salary of the employees whose salary is below Rs. 10000/-permonth (i.e. 2008) and Employer contributes 4.75% On the gross salary of the employee and the aggregate 1.75% + 4.75% is remitted to the ESI Department VAT: VAT percentage is 1, 4, and 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. For e.g. if the product value is Rs. 100 and the Tax applicable is 4%, in such case a bill is raised for Rs. 104. SALES TAX: Same as VAT