Commissioner of Labour

Cess Collection

Procedure for payment of cess

Cess shall be paid by an employer within 30 days of completion of construction project OR within 30 days of the date on which assessment of cess payable is finalized, whichever is earlier, (Rule 4).

  • In case of Government departments or Public Sector Undertakings - the cess shall be deducted from the bills payable to the contractor and deposited in the account of Board. The responsibility for deduction of cess in case of Government Departments is on the Head of the Department and in case of Local Authority the CEO of such authority. {Rule 4(3)}
  • In case of private construction (i.e. establishments other than Government or Public Sector Undertaking) Rule 4(4).
    • Where the approval of the construction work by a local authority is required, every application for such approval shall be accompanied by a cross demand draft in favour of the board for an amount of cess payable on the estimated cost of construction. The local authority shall not approve the proposal for construction if cess amount is not deposited in the manner as described.
    • Where the duration of the project or construction work exceed one year cess shall be paid within 30 days of completion of one year from the date of commencement of work and every year thereafter on the cost of construction incurred during the relevant period.
      Every employer is required to file a return in the manner prescribed (Section 4) Penalty Delay in payment of cess attracts interest at the rate of 2% per month (Section 8) In case of NON PAYMENT of cess the Assessing Officer is competent to impose penalty not exceeding the amount of cess Willful or intentional evasion of cess attracts punishment of imprisonment up to six months or fine or both. (Section 12 (2)) Section 11 provides for an appeal to the employer aggrieved by the assessment order made under Section 5.
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