I have constructed a building with 8000 sq.ft for running an ayurveda hospital. The construction was carried on by me employing different workers. Now the labour enforcement dept has sent notice to furnish return in form No.1. Whether the building and other construction workers welfare fund cess act applies to me. ? Majority of the workers employed were Bengalis.
From India, Cochin
Educator, Management Consultant & Trainer
Taxation And Hr
Korgaonkar K A
+1 Other

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.


The said construction work if is repair, modification or maintenance in nature then Act is not applicable. Again if total cost though a fresh work excluding value of land and machines is Rs. 10 lacs or more then you need to comply the same. You may call me over 09634532026 for making you full clarity.
RDS Yadav
Management Advisor

From India, Delhi
korgaonkar k a

Dear Rnc1471,
You have constructed a building which is not meant for your own residence. You must have employed more than 10 labours to construct this building.
Irrespective of cost of construction, to you the provisions of BOCW Act 1996 are applicable.
Your were supposed to:
1. obtain a registration certificate under this Act from the authority;
2. submit a notice of commencement / completion of construction work;
3. enrolled the labours as beneficiary under the Act;
4. submit From I to assessment officer; &
5. pay cess 1% of the construction cost
apart from many other compliances under this Act.
Labour Enforcement dept is very right in issuing a notice to you to furnish a return in form No.I.

From India, Mumbai

Dear Rnc1471,
As per your post contents , it is crystal clear that BOCW Act/ Rules is fully applicable to your establisgment .
The Govt. Labour Authorities are absolutely right by issuing a notice to your establishment. You have to statutory abide the core provisions of the BOCW Act/ rules & Labour Welfare cess Act/ Rules and follow the line of action in terms of compliances. Any deviation will attract penal action under the provisions of the said Act/ Rules .
Secondly , since you have had engaged "Inter State Migrant workmen" for carrying out the said construction activity , the "Inter State Migrant Wormen Act/ Rules" is also applicable . Pls abide the core provisions of the said Act/ Rules, otherwise any devaition of the same , would attract penalty / punshiment from the concerned Govt. Labour Authorities.
AK Sharma

From India, Mumbai

Could anybody share the modus of payment ? when it is due? Whether it is due at the begining of construction or stage wise ?What is the criteria for considering construction cost ? whether as per books of accounts or any simple method ?
This information will be helpful to forum.
Regards & Thanks
Pramod Thakar

From India, Pune

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server