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Dear Seniors,

Our establishment is currently undergoing construction work under a government unit. In our contract agreement, they have stated that Labour cess is not applicable for this job. However, an official from the labor office is now visiting our office for registration under Building and other construction work. In this dilemma, what should we do? Please guide me.

Regards,
Rahul

From India, Varanasi
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It should be mandatory to obtain the Registration under the Building and Other Construction Act, 1996. The Labor Commissioner is the authority responsible for recovering the welfare cess at a rate of 1% to a maximum of 2% of the cost of building construction. If your establishment is covered under the Factories Act, 1948, I am exempted.

Regards,
Santosh Kakde
Asst. Manager - IR
09561084890

From India, Mumbai
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Cess Requirement for Construction Projects

Even if it involves the construction of a factory building, the cess is required to be paid. Rule 4 of the Building and Other Construction Workers Welfare Cess Act, 1996 imposes a duty on the government office (your principal employer) to deduct 1% cess and deposit the same with the Board.

Regards,
jpratap

From India, Chandigarh
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