Regarding Bocw Labour Cess? - Doc Download - CiteHR
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Dear All, I am Newly Joined HR to a Construction company in Bangalore and i would like to know the Format for submission of Annual Returns under BOCW Act. Regards, Bhadrish M
Pl. guide me regarding BOCW cess rate applicable in Chatisgarh state along with state govt. Notification. Regards SKK_72
I want to know that if any university engages any contractor for construction of building then the university is liable to deposit labor cess or to register under BOCW act.
i am an enlisted contractor of building department AMU Aligarh. They send us a notice on 25/11/2013 that as the labour cess is applicable from 2009 in Uttar Pradesh and they are not deducting it till date, so they will deduct it from us for the period of 2009 to 2013. They do not add it in their past estimates nor tender forms. Will we have to pay that from 2009 or it is their fault so the PE i.e. Building dept AMU have to pay from their account ??

We are pest control operators in Ahmedabad, Gujarat and have been recently awarded with a Pest Control Contract by a Civil COntractor and they are deducting 1% labour Cess from our bills.
Please inform whether the same should be deducted from our Bills or not.

Dear Mitesh Agarwal ji,

In my view, your work of pest control will not fall under the preview of BOCW Act and there should not be any levy and collection of cess from the pest control contractor. Following points may be noted in this regards:

1. Pest control work can not be included in the definition of "Building or other construction work" as defined in section 2(1)(d);

2. Workers engaged for pest control work can not be "Building workers" as defined in section 2(1)(e);

3. Pest control contract is a contract for service;

4. The Principal has no control on the work, no supervision on the work and therefore there is no employer-employee relationship;

5. Cess is payable on cost of construction which includes all expenditure incurred by employer in connection with building or other construction work and excluding the cost of land and any compensation paid or payable to a worker or his kin under WC Act. Expenditure on pest control is not in connection with building or other construction work. So no cess is payable on this expenditure; and

6. This cess is for the welfare of construction workers / beneficiaries. When the employees engaged for pest control work are not construction workers or beneficiaries under the Act, why one should pay / deduct cess on pest control bill?

Subject : Labour cess deduction.
In a typical contract which is EPCM ; where in Engg(E), Procurement(P) and Construction(C) are separately indicated under the details of the indivisible contract ; then whether a stand taken by Contractor that cess is only on the C portion ( ie construction portion) would become applicable? - Whether such a stand would be acceptable to government since procurement part of EPCM contract is towards supply of the materials .
Please give your legal inputs on the same .

Thanks to all for providing such information.
But Still i Have a Doubt. is the cess applicable where 10 or more Construction worker dnot employed or BOCW Registration not taken by contractor ?
Kindly Reply

there is a provision of deduction cess at source for Govt. & public sector companies.
For private sectors contractor liable to pay cess who is registered under bocw but sectory issued a internal circular to Factory department not to approve buildings without receiving cess payment so i suggest you please ensure cess payment from contractor as per PO term.
Thanks & Regards
Sandeep Singh

Thank you for the details. how to register into BOCW and is cess is payable in once in a quarter or monthly basis. cut off date to pay the cess. Also wanted to know is this against the BOQ or against the RA Bills we raise to Principal Employer.

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