I would like you to go through the definitions of the terms "employer" and "establishment" defined respectively u/s 2 (1) (i) and 2 (1) (j )of the BOCW Act,1996 and the time and manner of collection of cess stipulated under rule 4 of the BOC W Welfare Rules 1998.
A combined reading of all the above provisions would affirm the correctness of the practice of deducting cess proportionately from the contractors' bills.
Though your second question seems to be a moot one, the applicability of the terms "employer" and "establishment" to both the person for whom the construction work is carried out and the contractor who undertakes the work makes both responsible for the remittance of the cess. To be more specific on this moot point, my personal opinion on ultimate responsibility to collect and remit revolves around fixing the person for whom the construction work is done in view of the extended application of the provision under rule 4(3) for deduction from the bills in respect works pertaining to Public Sector and Govt Undertakings to others also and the provision under rule 4(5) of the 1998 Rules for advance payment of cess based on the estimated calculation of construction.
From India, Salem
CSPTCLThanks for the input.
However to be specific my query is - whether recovering cess from customer we undertake contract work from them is correct or not.
Don't you think that there is double recovery and payment of cess - first time from our customer and second time from sub-contractors bill (for the same work outsourced to sub-contractor)
From India, Faridabad