Dear All,
I need your valuable advice. I am working in a pharma company. In our company, some construction work is going on. One day, a factory inspector came to our company and demanded RC under Building and Other Construction Workers.
Please advise me on where I can obtain RC and what kind of documents are required for it. Kindly provide me with all the details regarding the liability of the employer under Building and Other Construction Workers.
Warm Regards,
Gaurav Mehta
From India
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14I need your valuable advice. I am working in a pharma company. In our company, some construction work is going on. One day, a factory inspector came to our company and demanded RC under Building and Other Construction Workers.
Please advise me on where I can obtain RC and what kind of documents are required for it. Kindly provide me with all the details regarding the liability of the employer under Building and Other Construction Workers.
Warm Regards,
Gaurav Mehta
From India
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Dear All, Please i m still waiting for your valuable advice . i take RC from labour inspector , plz hary up Warm Regards Gaurav Mehta
From India
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From India
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Dear All Still i don’t get any response, I need your advice on urgent due to highly pressure , i faced from my boos and management also. Warm Regards Gaurav Mehta
From India
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From India
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You have to apply for RC at the inspector of factories. Approach the inspector of factories in your respective region and fill up form 1 with applicable fees and you will get the RC in a month.
From India, Chennai
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From India, Chennai
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If your Construction cost exceeds 10 L, you have to register with BOCW and remit 1% of construction cost towards labour cess.
From India, Lucknow
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From India, Lucknow
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Dear Sir,
We need to fill only Form No. 1 along with the fees. No other supportive documents are required for the RC. This means that any other information does not need to be sent to the factory inspector. Also, please send me the attached file for Form No.
Warm Regards,
Gaurav Mehta
From India
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We need to fill only Form No. 1 along with the fees. No other supportive documents are required for the RC. This means that any other information does not need to be sent to the factory inspector. Also, please send me the attached file for Form No.
Warm Regards,
Gaurav Mehta
From India
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Dear Gaurav Mehta,
Greetings of the day!
Your company is undertaking a construction job, or you have hired a contractor to do the same. If you have engaged a contractor, kindly ensure they are registered under the BOCW Act and that they pay the CESS amount, which is 1% of the Construction Cost.
Alternatively, if your company has not hired a contractor, you must apply for Registration Certificate (RC) under the BOCW Act. It is important to note that if your company is already registered under the Factories Act, obtaining an RC under the BOCW Act is not necessary. In areas where the Factories Act is in force, the BOCW Act does not apply. Therefore, your company must comply with either the Factories Act or the BOCW Act accordingly.
Regards
From India, Kolkata
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Greetings of the day!
Your company is undertaking a construction job, or you have hired a contractor to do the same. If you have engaged a contractor, kindly ensure they are registered under the BOCW Act and that they pay the CESS amount, which is 1% of the Construction Cost.
Alternatively, if your company has not hired a contractor, you must apply for Registration Certificate (RC) under the BOCW Act. It is important to note that if your company is already registered under the Factories Act, obtaining an RC under the BOCW Act is not necessary. In areas where the Factories Act is in force, the BOCW Act does not apply. Therefore, your company must comply with either the Factories Act or the BOCW Act accordingly.
Regards
From India, Kolkata
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Dear Sir,
If it is an existing factory, the BOCW Act is not applicable to any of the activities on the factory premises. However, if it is a factory under construction, the BOCW Act is applicable to the entire worksite, including your supply and erection work. The Principal Employer and all contractors under him employing 10 or more persons are required to apply for and obtain Registration Certificate (RC) under the BOCW Act. Additionally, each beneficiary (serving for more than 90 days) needs to be registered with the Board under the BOCW Act.
Warm Regards,
Gaurav
From India
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If it is an existing factory, the BOCW Act is not applicable to any of the activities on the factory premises. However, if it is a factory under construction, the BOCW Act is applicable to the entire worksite, including your supply and erection work. The Principal Employer and all contractors under him employing 10 or more persons are required to apply for and obtain Registration Certificate (RC) under the BOCW Act. Additionally, each beneficiary (serving for more than 90 days) needs to be registered with the Board under the BOCW Act.
Warm Regards,
Gaurav
From India
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Dear colleagues,
I wish to clarify the issue a bit more in light of the above posts of Mr. Ghosh and Mr. Mehta. Legally, yes, a contractor has to obtain RC and pay a 1% cess on new construction values if it's Rs.10 lakhs or more. This means that construction activities on the extension of old or upgrading of previous jobs, if done, then cess is not applicable. In case the contractor is liable but has not paid cess if payment is taken from the company, then the company is bound to pay to the authority while the company can claim this with administrative costs from the contractor.
In one of my client companies, the boiler plus chimney installation work was charged on the full bill amount by ALC. The bill was without a bifurcation of materials, labor costs, and other incidental expenses. The activities included jobs like designing, fabrication of a steel chimney, rent paid for a crane for 23 days, and fooding and transportation of men, materials, and lastly cement, bricks, steel, concrete, sand plus mason and labor costs for the exact work of plastering and erecting the chimney. The said contractor had also done part jobs of construction, repair, and wooden works of our GET hostel building, and the total cost was coming around Rs. 30 lakhs. ALC was demanding the full bill amount for the construction cess, but we replied and enclosed a cess payment check for Rs. 6 lakhs. We replied that the actual construction cost was Rs. 6 lakhs, while the bifurcation was also given, and the hostel work was shown as repair activities and claimed as exempted from cess applicability. ALC agreed to our stand.
It is advisable that when construction activities are given to a contractor, then a proper definition of activities will be supporting a lot with its meaning, and you can easily reproduce things as a normal practice in case it is explainable from its beginning through records.
Regds,
RDS YADAV
LABOUR LAW ADVISER
DIRECTOR-FUTURE INSTT. OF MANAGEMENT AND TECHNOLOGY
From India, Delhi
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I wish to clarify the issue a bit more in light of the above posts of Mr. Ghosh and Mr. Mehta. Legally, yes, a contractor has to obtain RC and pay a 1% cess on new construction values if it's Rs.10 lakhs or more. This means that construction activities on the extension of old or upgrading of previous jobs, if done, then cess is not applicable. In case the contractor is liable but has not paid cess if payment is taken from the company, then the company is bound to pay to the authority while the company can claim this with administrative costs from the contractor.
In one of my client companies, the boiler plus chimney installation work was charged on the full bill amount by ALC. The bill was without a bifurcation of materials, labor costs, and other incidental expenses. The activities included jobs like designing, fabrication of a steel chimney, rent paid for a crane for 23 days, and fooding and transportation of men, materials, and lastly cement, bricks, steel, concrete, sand plus mason and labor costs for the exact work of plastering and erecting the chimney. The said contractor had also done part jobs of construction, repair, and wooden works of our GET hostel building, and the total cost was coming around Rs. 30 lakhs. ALC was demanding the full bill amount for the construction cess, but we replied and enclosed a cess payment check for Rs. 6 lakhs. We replied that the actual construction cost was Rs. 6 lakhs, while the bifurcation was also given, and the hostel work was shown as repair activities and claimed as exempted from cess applicability. ALC agreed to our stand.
It is advisable that when construction activities are given to a contractor, then a proper definition of activities will be supporting a lot with its meaning, and you can easily reproduce things as a normal practice in case it is explainable from its beginning through records.
Regds,
RDS YADAV
LABOUR LAW ADVISER
DIRECTOR-FUTURE INSTT. OF MANAGEMENT AND TECHNOLOGY
From India, Delhi
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(Fact Checked)-The user's reply contains accurate information regarding the requirement for obtaining Registration Certificate (RC) and the payment of cess for construction activities. The explanation provided aligns with the legal obligations of contractors and employers under the Building and Other Construction Workers Act. (1 Acknowledge point)
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Dear RDS Yadav,
Thanks for your valuable sharing. I would like to know one more point regarding Promoters and Builders. They are not registered under the Factories Act. Nowadays in Maharashtra, at the time of Plan passing, 1% cess is required to be paid to the Local authority such as the Municipal Corporation / Collectorate.
Under the circumstances, what is the exact procedure for registration under BOCW? Kindly share your views and the exact procedure for Builders and Promoters.
Warm Regards,
Pramod Thakar
From India, Pune
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Thanks for your valuable sharing. I would like to know one more point regarding Promoters and Builders. They are not registered under the Factories Act. Nowadays in Maharashtra, at the time of Plan passing, 1% cess is required to be paid to the Local authority such as the Municipal Corporation / Collectorate.
Under the circumstances, what is the exact procedure for registration under BOCW? Kindly share your views and the exact procedure for Builders and Promoters.
Warm Regards,
Pramod Thakar
From India, Pune
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(Fact Checked)-The user's reply contains accurate information regarding the requirement of 1% cess payment to local authorities in Maharashtra at the time of plan passing for Builders and Promoters. The user's inquiry about the exact procedure for registration under BOCW for Builders and Promoters is valid. (1 Acknowledge point)
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Dear Pramod Thakar,
There are two elements - one is the factory, and the second is the contractor; both are liable to ensure compliance. Promoters and builders are already involved in these two. If the factory is carrying out work with its logistics and manpower, then the factory manager is required to obtain registration. In the case where the factory has outsourced all civil jobs to a contractor, the contractor, as a separate entity, must obtain registration under BOCW from the Labour department. When finalizing the rate contract, other legal liabilities like ESI/PF/EDLI need to be considered, with a liability of 1%. If the factory management has settled all legal dues, then based on their separate registration, the contractor is obliged to pay all dues, including this one. In case of default or non-payment of dues, the factory management will be liable for the dues, and it is an actionable claim against the defaulting contractor. Promoters are not liable except for the factory manager and occupier; however, builders engaged in civil jobs in the factory are liable.
I reiterate, the bifurcation of various cost heads is essential to ensure the correct amount of cess.
Regards,
RDS Yadav
Labour Law Adviser
DIRECTOR - Future Instt of Management and Technology
From India, Delhi
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There are two elements - one is the factory, and the second is the contractor; both are liable to ensure compliance. Promoters and builders are already involved in these two. If the factory is carrying out work with its logistics and manpower, then the factory manager is required to obtain registration. In the case where the factory has outsourced all civil jobs to a contractor, the contractor, as a separate entity, must obtain registration under BOCW from the Labour department. When finalizing the rate contract, other legal liabilities like ESI/PF/EDLI need to be considered, with a liability of 1%. If the factory management has settled all legal dues, then based on their separate registration, the contractor is obliged to pay all dues, including this one. In case of default or non-payment of dues, the factory management will be liable for the dues, and it is an actionable claim against the defaulting contractor. Promoters are not liable except for the factory manager and occupier; however, builders engaged in civil jobs in the factory are liable.
I reiterate, the bifurcation of various cost heads is essential to ensure the correct amount of cess.
Regards,
RDS Yadav
Labour Law Adviser
DIRECTOR - Future Instt of Management and Technology
From India, Delhi
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user reply contains accurate information regarding the liability under the Building and Other Construction Workers (BOCW) Act and the responsibilities of the factory manager and contractor. The explanation provided is in line with the legal requirements. (1 Acknowledge point)
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4.THE BUILDING AND OTHER CONSTRUCTION WORKERS' WELFARE CESS ACT, 1996.doc
BOCW Act for construction in factory premises- SC.PDF
CiteHR.AI
(Fact Checked)-The user's reply is [B]correct[/B] based on the Building and Other Construction Workers (BOCW) Act. The Act applies to construction activities, including those within a factory under construction, requiring registration and obtaining a Registration Certificate (RC) for compliance. Thank you for your detailed explanation and understanding of the BOCW Act. (1 Acknowledge point)