The Act fastens the liability to pay BOCW Cess on the contractor and it empowers the establishment to deduct the BOCW Cess amount and directly deposit with the concerned authorities. This is a statutory liability and in case of failure to deposit the same, you are liable to penalty as provided in the Act besides prosecution proceeding.
In certain states like MP, building permission by the civic body is linked to deposit of BOCW Cess as per the cost of construction assessed by the body concerned. Failure to get building permission invites heavy penalty (Six times in case it is sought after construction)
There is no escape for the establishment as it is permenent, the contractor comes and goes. It is very easy to serve notice on the establishment and not that easy to follow up with the contractor. So the authorities take the easy route and seek compliance report from the establishment where work was done.