Commissioner of Labour

Act & Rules

RULES FRAMED UNDER THE CESS ACT

The Central Government has made Building and Other Construction Workers’ Welfare Cess Rules, 1998 as per provisions of section 14 of the Act. It is mandatory for deduction of cess payable at the notified rate i.e. 1% of the construction cost as defined in Section 3 of "The Building and Other Construction Workers Welfare Cess Act 1996 from the bill paid for the "building and other construction work of a Government or a Public Sector Undertaking”. [Rule 4]

The cost of construction for the purpose of levy of cess is defined in rule 3.

The cost of construction shall include all expenditure incurred by an employer in connection with the Building or Other Construction Work, as assessed by the Assessing Officer (notified by the Government of Maharashtra) as per the provisions of Section 5 and Rule 7, however, the construction cost shall not include the following

  • The cost of the land,
  • Any compensation paid or payable to a worker or his keen under the Workmen’s Compensation Act, 1923.

SALIENT FEATURES

  • It is an Act to provide for the levy and collection of cess of the cost of construction incurred by employers with a view to augmenting the resources of the Building and Other Construction workers’ Welfare Boards constituted under the Building and Other Construction workers’ (Regulation of Employment and Conditions of Service) Act 1996.

    The Act empowers the central Government to determine the rate at which the cess is to be levied and collected (not exceeding two per cent but not less than one per cent). The Central Government vide notification no _______ dated ________ has notified the rate of cess as one percent.
  • Every employer is required to file a return in the manner prescribed (Section 4)

    Section 5 defines the power of assessment process, while Section 8 deals with interest payable in the event of delayed payment of cess, Section 9 stipulates penalty for non-payment of cess. Section 11 provides for an appeal to the employer aggrieved by the assessment order made under Section 5.
Go to Navigation