Labour Cess

[CABALRAM PANDEY]

Dear all,

 

Now a days i am hearing that each and every builders have to pay 1% of cost of project as labour cess before starting of construction work. Please confirm and mention the exact provision and procedure for registration and other relevant  things related to this. Please advice.

 

Thanks & Regards 

CA Balram Pandey

[YAGAY andSUN]

 

Amendment to the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and Building and Other Construction Workers’ Welfare Cess Act, 1996

November 2, 2012

Cabinet 01-November, 2012 13:13 IST Amendment to the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and Building and Other Construction Workers’ Welfare Cess Act, 1996 The Union Cabinet today approved the Amendment to the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) { BOCW (RECS)} Act, 1996 and Building and Other Construction Workers’ Welfare Cess Act, 1996 and the introduction of the Building and Other Construction Workers Related Laws (Amendment) Bill, 2012 in Parliament in its ensuing session. This amendment will streamline the process of the registration of the construction workers. The State Welfare Boards will be able to consolidate their finances and incur expenditure on administrative and other purpose for smooth functioning of the Board. The amendments will facilitate speedy implementation of these Acts by the Central and the State Governments. The provisions in the Amendment are given below : 1. Empower the Central Government to specify the maximum cost of construction by notification, in place of the present limit of Rs. 10 lakh, which shall fall within the definition of establishment under the BOCW (RECS) Act. 2. The prerequisite condition of engagement of ninety days for registration of workers under the BOCW (RECS) Act is proposed to be done away with. Moreover, in order to extend benefits to the workers, who are engaged in building and construction work after attaining the age of sixty years, the criteria of upper age limit of sixty years is proposed to be done away with.   3. To empower the Central Government to notify such percentage of total expenditure, in place of existing 5 percent during the financial year, for meeting administrative expenses by the State Building and Other Construction Workers Welfare Board.   4. To empower Central Government to appoint such number of Director Generals not exceeding 10 to coordinate with the Central Government in carrying out its responsibility of laying down the standard of inspection and to exercise the power of an inspector.   5. To empower the State Governments to file complaints for contravention of provisions of the Act.   6. To prescribe a time limit of 30 days for cess collecting authorities to deposit

[CABALRAM PANDEY]

Dear Sir, 

 

This is really a great help to me. but my concern is far more, as i am confused, the department is saying i have to take registration for each and every site. Then i have to pay 1% of project or total construction cost. 

My view is that once a company/establishment will take one registration and that will cover all the sites under that company. secondarily labour cess will be 1% of total construction construction cost incurred during the financial year.

Please suggest me whether i am wrong, if yes then what to do. 

Thanks & Regards

Balram Pandey

[YAGAY andSUN]

Please check the related Act and Rules made thereunder in this regard to dig deeper.

[CABALRAM PANDEY]

What you are saying is ok, if any thing clearly written in act, please give a reference of rule where procedure of such activities are mentioned. 

 

Pl Advice

AI Summary

Builders Must Pay 1% Labor Cess Pre-Construction; Clarifications Sought on Registration for Multiple Sites Under Amended Acts A forum participant inquired about the obligation for builders to pay a 1% labor cess on project costs before starting construction, seeking clarification on registration and related procedures. A respondent highlighted amendments to relevant Acts, aiming to streamline worker registration and financial management by State Welfare Boards. The amendments empower the government to adjust construction cost limits, remove age and work duration restrictions for worker registration, and enhance administrative capabilities. The original inquirer expressed confusion over site-specific registration requirements and sought further clarification on whether a single company registration suffices for multiple sites.