Good morning to all my seniors,
I am working with a contractor (construction). we are working for various builders in NCR. I want to ask regarding cess which is covered Delhi, Haryana & UP for labour welfare i.e. 1% of total bill value. I want to ask who is responsible to deposit the cess contractor or builder?

From India, Gurgaon
The Contractor has to deposit the cess amount. See Builders Association Judgment by delhi High Court.
From India, Mumbai
Dear friends,
Re: Labour cess
It may be understood that the cess is to be paid by the person who incurs the cost of construction. In case a contractor undertakes to do construction work for the government or local authority etc., cess will be deducted from his bills and the government deptt is responsible for deduction of cess at source and to deposit the same with the Board. But it may be noticed that although it is deducted from the bills of the contractor but the element of cess is already embeded by him in his tender amount. So, ultimately, it is the department who is paying and not the contractor. However, in case of a private construction or construction by builder, the same has to be paid by the owner i.e. the one who incurs the cost of construction.
Best wishes
Jpratap

From India, Chandigarh
Dear Sir,
Sub: Labour Cess
We are working with M/s JP Associated Limited, Pryagraj Thermal Power Project, Bara, Allahabad,i want to ask regarding cess which is coverd delhi, haryana & u.p for labour welfare i.e. 1% of total bill value. I want to ask who is responsible to deposit the cess contractor or builder?

From India, Delhi
Hi,
My name is Pradeep Manda working in a manufacturing company,
Recently we received notice from Labour Department regarding labour cess. We replied that we are already paid the but they are included plant and machinery cost also.
My request please let me know that plant and machinery will include in labour cess payment?

Thank you

From India, Hyderabad
Dear Colleague,
As per the provisions of the Building and other Construction Workers' Welfare Cess Act 1996, the cess levied under sub-section (1) shall be collected from every employer in such manner and at such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such local authority is required, as may be prescribed.

THE BUILDING AND OTHER CONSTRUCTION WORKERS’ WELFARE CESS ACT, 1996


3. Levy and collection of cess.—(1) There shall be levied and collected a cess for the purposes of the
Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996), at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification in the Official Gazette, from time to time specify.
(2) The cess levied under sub-section (1) shall be collected from every employer in such manner and at such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such local authority is required, as may be prescribed.
(3) The proceeds of the cess collected under sub-section (2) shall be paid by the local authority or the State Government collecting the cess to the Board after deducting the cost of collection of such cess not exceeding one per cent. of the amount collected.
(4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under this Act including payment of such cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates as may be prescribed on the basis of the quantum of the building or other construction work involved

All the Best and God Bless,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu

From India, Chennai
Dear Pradeep Manda,

Plant and machinery are not to be included for the calculation of labour cess. However, cost of its installation may be included.

Regards
Jacob Pratap
Deputy Labour Commissioner, Punjab (Retd.)

From India, Chandigarh

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