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Dear
Look at the terms of the tender. If the tender document contains 1% cess on the cost of construction and the cost specified by the contractor is 5 crores that means it is inclusive of 1% cess. By not deducting cess at source, you would be favouring the contractor. Hence, the cess is to be deducted on 5 crores and not one crore. Study the 'cost of construction' as contained in Rule 3 of the Cess Rules 1998.
Best wishes,
Jpratap

From India, Chandigarh
Dear Manoj,
Please read the BOCW Act, 1996 and BOCW Rules, 1998 and understand the purpose, concept and scheme of the Act and then come up with specific questions at this forum and we would be happy to answer the queries. I am sure you would find many answers within the Act and the Rules.
Best wishes,
jpratap

From India, Chandigarh
Dear all,
Can any one tell about the pf and esic applicablility to construction unit. we are the principal employer give work contractor for construction but our staff are their 6 no to handle the core work. Is the pf and esic applicable. if applicable how to go about it. how to deduct the amount from the contractors bill if non production of document of wages by contractors.
Please do needful
Raju S

From India, Pune
Re: Building and Other Construction Worker Act
Dear all,
Can any one tell about the pf and esic applicablility to construction unit. we are the principal employer give work contractor for construction but our staff are their 6 no to handle the core work. Is the pf and esic applicable. if applicable how to go about it. how to deduct the amount from the contractors bill if non production of document of wages by contractors.
Please do needful, reply on email or suggest on below mentioned phone no
Raju S

09923634912

From India, Pune
Dear all

BOCW Welfare cess will be remitted to the concerned authority (state/Central) to appropriate BOCWW Board (As per act the Cess limit is Minimum of 1% and Maximum of 2% will be collected). The amount fixed is if the project duration is for within 1 year then 1% of Contract Value or if the Project duration is more than 1 year then the work done during the Financial Year. (My Project in Hyderabad was Rs. 150 crores, First Year I Paid Rs.39,00,000 for the work done for Rs. 39,00,00,000/- and for Second Year I Paid Rs.30,00,000/- for the work done for Rs. 30,00,00,000/-). As the same was done during the initial stage of enforcement of the act the authorities does not formed any checking provisions in their policies.

Presently after making Cess payment the BOCW Welfare commissioner the inspector duly appointed by the appropriate authority will come and inspect the relevant documents.

The concept of this act is to utilise the funds for the welfare of the construction workers, who will be issued with an Identity Card for those whoever worked continuously for 4 months duration on payment of Rs.50/- per head and for renewal of the same Rs. 12/- will be charged every year. (Here No construction worker will continuously work for more than 6 months and no one will stay in a particular locality for more than one project. Hence it is not practicable to the workforce to renew the same. But if the workmen having highly influencial then they can get the benefit of Free Medical benefits, Accidental Insurance, disability benefits, and to their nominees death benefits and for female workers Maternity leave and medical facilities will also be provided. (On papers)

Please do not disclose the secret of collecting the cess (it is collected mainly to bridge the difference due to deficit in the financial Budget upto certain level only).

The Payment of ESI is not applicable for the construction Industries.

BOCW Act is not applicable for the Factories or Industries registered under Factories Act and Mines Act.

With Warm Regards

S. Bhaskar

9099024667

From India, Kumbakonam
Dear Bhaskar,
Could you please clarify what do you mean by "Please do not disclose the secret of collecting the cess (it is collected mainly to bridge the difference due to deficit in the financial Budget upto certain level only)" as suggested by you in the last few lines above.
Regards
jpratap

From India, Chandigarh
Dear Mr. Pratap

As a matter of fact Will you justify that this fund generated will fully be utilised only for the welfare of Construction Workers Welfare purpose.

If so what is the percentage of work force is working in years together in one place. The I Card issued by the BOCWW Board is only on District level and not even in State level.

I am working in a reputed company as Asst manager (IR) and drawing a handsome amount of salary.

Eventhough I have no financial problem. But I am unable to visit to my previous place of work due to one other reason.

Do you think the workman whoever registered will be able to go and get the Renewal of registration every year

Do you think the workmen are sufficiently qualified to maintain the dates of renewal, being educated to keep them updated about the maintenance of requisite papers ready.

Hence the Funds regenerated by BOCWW Board may be on books on the records of Construction workers welfare utilisation but the purpose is only to bridge the gap arouse in the Deficit financial Budget.

With warm regards

S. Bhaskar

9099024667

From India, Kumbakonam
Dear Mr. Bhaskar,
Please be clarified that the cess collected is retained by the State Building and other Construction Workers Welfare Board. It does not go to Government Exchequer at all; so the question of bridging the gap due to deficit in the financial budget of the government does not arise. On the contrary, like any other private construction, the government also has to pay cess to the Board on the construction work being carried by it.
Regards
jpratap

From India, Chandigarh
Mr. J. Pratap,
Good contribution as far as understanding of BOCW Cess Act is concern. Wish to discuss with you in detail on this Cess Act. Can I have your Mobile number?
Regards,
Avadhut Deshpande
09922507608

From India, Mumbai
Dear All,
I have a question?
If I am constructing 1 building out of big project of 10 building in Maharashtra. Then I have to make part payment or have to make payment against entire project.
Kindly clarify.
Thanks, AMIT - 9011481111

From India, Pune

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