PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Labour Law & Hr Consultant
John Sebastian Peter
General Consultant- Hr
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KK!HRAs per BOCW Act 1996, the individual contractor requires registration if it employs construction worker involved in cost of construction exceeding Rs. 10 lakh. The Section 2(j) defines as follows:
―establishment means any establishment belonging to, or under the control of, Government,
any body corporate or firm, an individual or association or other body of individuals which or
who employs building workers in any building or other construction work; and includes an
establishment belonging to a contractor, but does not include an individual who employs
such workers in any building or contraction work in relation to his own residence the total
cost of such construction not being more than rupees ten lakhs;
As regards the cess payable under the BOCW Cess Act 1996, it suffices for ABCD contractors if Y complies.
Hence it will be legal and proper on your part to insist upon BOCW registration for ABCD contractors provided they are executing works more than Rs. 10 lakh in your works otherwise you (P.E.) may have to answer for them.
From India, Mumbai
S.2(1)(g) of the BOCW Act,1996, while defining the term "contractor" specifically includes a sub-contractor also. Therefore, being sub-contractors to Y, the contractor of X, a,b,c and d have to comply with the provisions of registration under the Act.
From India, Salem
Soumitra SenguptaWhat I guess is that a, b, c and d are subcontractors to Contractor Y. As per BOCW Act, if Contractor Y is registered under the act, the same registration would cover all subcontractors' Workmen and thus, individual subcontractors need not take seperate registration. As far as payment of CESS under the act is concern, Contractor Y shall have to pay that based on sum total of value of subcontracted work. If Y is executing some work directly without subletting it, CESS would be charged on the value of said work as well. He may, however, recover CESS paid proportionately from Subcontractors subject to Subcontracting conditions.
From India, Pune
John Sebastian PeterDear All,
Thanks for all your valuable explanation regarding BOCW act,
On this continuation one more doubt please clarify on this second:
Case Study :2
a.Principal Employer is X
b. Sub contractor is Y which is already obtained BOCW, here the sub contractor is paying 1% for Cess Amount in BOCW for all his sub contractor a,b,c,d.
After a,b,c,d registration in BOCW, now whether they are mandatory to pay cess Amount or not ?
Expecting quick reply from all the experts thanks in advance sir's.
From India, New Delhi
Since the Principal Employer, Contractor and Sub-Contractor are employers for the purpose of the Act, cess has to be collected from every one of them. However it does mean that every one's share has to be determined according to the value of the work he has completed. Therefore if the PE or the Contractor pays some advance cess at some rate of the total estimated cost, he can recover it from the other or others as the case be. In such a situation, my opinion is that every one need not pay the cess for it would make multiple payments.
From India, Salem
firstname.lastname@example.org it possible in part of the prin. employer to deposit cess yearly or half-yearly.
From India, Rajgir