Dear Kunal ji,
BOCW Act is applicable to your construction site and you are liable to pay the cess @ 1%.
I take a stand that the Cess is payable by the Principal Employer. This is because:
i. the assessment of cess is done on the basis of total construction cost (excluding land cost and compensation paid / payable under WC) and not on the basis of contractors billing.
ii. the information to be furnished to the assessment officer in 'Form I' is done by the Principal Employer and not by Contractor(s). The assessment order is passed on the basis of this information in 'Form I'.
However, the Principal Employer can make recovery of the cess amount from contractor's billing if it is provided in the agreement signed by both the parties.
I am quoting two different Judgments on this issue as under:
1. It will be the liability of the contractor and not the principal employer to pay welfare cess in respect of workers working at site under building and other construction workers welfare cess Act 1996.
M/s. Gannon Dunkerley & Co. Ltd. vs. State of Madhya Pradesh and Others. 2010 LLR 184 (MP HC)
2. It will be the owner and not the contractor of this establishment who will be responsible to pay Cess under Building & Other Construction Workers (RE&CS) Act.
Adani Agri Logistics Limited and Another vs. The State of Haryana
and Others. 2010 LLR 752 (Punjab & Haryana HC)
You need to take a call on it.
Thanks with regards.
Shantadurgaent.com,Insurance Advisors,Corporate Advisors,Legal Advise,Wage and salary,Shantadurgaent.com,Labour Compliance Audit,SSI registration,NOC from
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Topic Categories >> cess act compliance audit construction site construction work construction workers construction workers act labour compliance liability of the contractor Location-India-Mumbai workers welfare Complete List Of Categories
Interesting Relevant Discussions