Are We Really Liable for This Unexpected Construction Cess Charge? Seeking Advice!

Dear all,

My brother and I purchased a plot in the society in 2011, and we constructed a house on it in 2014. Initially, we spent a lump sum amount of 12,00,000/- rupees. However, the Building and Other Construction Workers (BOCW) have charged a lump sum amount of 17,00,000/- rupees for the house. Additionally, they have imposed a cess charge of Rs 17,000/- on us.

As two partners in the house, are we liable to pay this amount? If we consider sharing the construction cost, it would amount to 8,50,000/- rupees for each of us. According to the rules, the owner should not spend more than 10,00,000/- rupees.

Thank you.

Definition of 'Establishment'

You will have to see the definition of 'Establishment' to ascertain the position:

(j) "Establishment" means any establishment belonging to, or under the control of, the Government, any body corporate or firm, an individual or association or other body of individuals which or who employs building workers in any building or other construction work; and includes an establishment belonging to a contractor, but does not include an individual who employs such workers in any building or construction work in relation to his own residence, the total cost of such construction not being more than rupees ten lakhs.

So the crucial question is the worth of building or construction work carried out, and it does not matter whether it is an individual or a body of individuals who get the construction done. Seen thus, there is a liability to comply with the BOCW Act.