Understanding BOCW Act: When and How to Pay the 1% Cess and Registration Queries

Dear All,

Clarifications Needed Under BOCW Act

1. The total cess amount is 1% of the project cost. Are there any specific instructions regarding the payment of this amount? For instance, should we pay this amount at the time of sanctioning, at a specific stage, or after the completion of the project?

2. Regarding registration under BOCW, should both the principal employer and the contractor register under the act, or can only the contractor register, excluding the principal employer? If both have registered, what are the implications?

3. In the registration form, under point 6, there is a sentence requesting the date of commencement and the tentative date of project completion. What should be done if the project does not finish before the tentative completion date in terms of the registration form?

Thank you in advance.

The BOCWW Cess is to be paid as per the work completed during the Financial Year. If the project cost is 100 Crores, then in the first FY, if you complete 25% of the work, you will have to pay Rs. 25 Lakhs. In the next financial year, if you complete 75% of the work, you will have to pay Rs. 50 Lakhs. On completion of the project in the third financial year, the inspecting officer will visit your project, evaluate the cost of work done, and claim the balance amount accordingly, which you will have to pay.

Registration Under the BOCW Act

As per the BOCW Act, there is no such Principal Employer. The registration certificate must be obtained by Employers, Contractors, and Sub-Contractors. The Act does not mention this clearly, leading Government Officials to take undue advantage in this regard.

Amendments in the Registration Certificate

If you are unable to complete the project within the specified time limit in the Application Form for RC, you must apply for an amendment in the Registration Certificate. Amendments in the RC are required for the following changes:
- Date of Commencement
- Date of Completion
- Increase in Workmen Strength
- Job Scope Extension
- Change in Board of Directors
- Change in Manager
- Change in Employer

Furthermore, your project's Safety Policy and Emergency plan must be approved by the BOCW authorities.

Regards