Navigating the Building and Other Construction Work Act 1996: Do We Need to Pay Cess for Past Workers?

Hi all,

Can anybody help me with the Building and Other Construction Work Act 1996? (I was in a manufacturing company and I am new to this type of organization). Our project, which consisted of villas, was completed at the end of 2007. We are currently in the process of handing over the villas to their owners. One day, the Assistant Director of Safety and Health visited our project and inquired about the registration under the Building and Other Construction Work Act 1996 and the collection of Cess, i.e., 1% under the same Act. We have already deposited Rs. 5000 as registration fees in S.B.I. and informed the concerned department. We are willing to deposit the Cess. Since our project is now completed, we no longer have any workers on-site. Can you please advise if it is necessary for us to deposit Rs. 85 per worker (considering all workers who were with us or with contractors) even though no workers have been with us since December 2007? (Our project started in 2004 and was completed in 2007).

With regards,

Ajay Sharma
09810989812

Dear Ajay,

It is necessary to register the construction site under the Building Workers Act-1996. However, as you mentioned that you have deposited Rs.5000 for registration at SBI, it is ambiguous. The fee should be deposited in a challan (Rs.500) along with Form-A under rule-23(1).

Secondly, labor cess may be deposited retrospectively at 1% of the total construction cost per year separately. For example, if the construction starts from June 2004 to August 2007, calculate the construction cost yearly (from June 2004 to 2005 and onwards) and submit it separately to the labor office. Please note that registration under the Act is mandatory.

If you are still confused, please email me at vinodsingh.hr@gmail.com.

Thank you.

Dear Mr. Vinod Singh,

I am a new member to this site and I need some clarification regarding the implementation of labor cess in the state of Andhra Pradesh. The Act of applicability started in June 2007 in this state. Is it necessary for us to implement it with retrospective effect from the date of construction, which in our case is the year 2005?

Please clarify.

Regards,
THAKKAR