CESS

Overview

The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 was introduced by the Government of India to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare measure and for other matter connected therewith or incidental thereto. The rules to the act were bought into force by the Andhra Pradesh Government with effect from 26.06.2007.

The Building and Other Construction Workers Welfare Cess Act 1996 was introduced by the Government of India to provide for the levy and collection of a cess on 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 Building and Other Construction Workers Welfare Cess Rules 1998 was introduced by the Government of India in exercise of the powers conferred by sub-section (1) of section 14 of the Building and Other Construction Workers' Welfare Cess Act 1996 (Act 28 of 1996).

The Government of Andhra Pradesh has constituted the Andhra Pradesh Building and Other Construction Workers Welfare Board under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 to implement the provisions and the schemes as per the above Act

Cess Assessment

There shall be levied and collected a cess for the purposes of the Building and Other construction Workers (Regulation of Employment and Conditions of Service ) Act, 1996 , at such rate not exceeding two percent but not less than one percent of the cost of construction incurred by an employer, asa the Central Government, may, by notification in the official Gazette, from time to time, specify.

The cess levied under sub-section (1) shall be collected from every employer in such manner and at such time , including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking, or advance collection through a local authority where an approval of such building or other construction work by such local authority is required, as may be prescribed.

The proceeds of the cess collected under sub-section (2) shall be paid by the local authority or the State Government collecting the cess to the Board after deducting the cost of collection of such cess not exceeding one percent of the amount collected.

Notwithstanding , anything contained in sub-section(1) or sub section (2), the cess leviable under this Act including payment of such cess in advance , subject to final assessment to be made, be collected at a uniform rate or rates as may be prescribed on the basis of the quantum of the building or other construction work involved.

Assessment of Cess:

The officer or the authority to whom or to which the return has been furnished under section 4 shall, after making or causing to be made such inquiry as he or it thinks fit and after satisfying himself that the particulars stated in the return are correct, by order, assess the amount of cess payable by the employer.

If the return has not been furnished to the officer or authority under subsection (2) of section 4, he or it thinks fit, by order, assess the amount of cess payable by the employer.

An order of assessment made under sub-section (1) or sub-section (2) shall specify the date within which the cess shall be paid by the employer.

Mode of Payment

The cess levied under sub-section (1) of section 3 of the Act shall be paid by the employer , within thirty days of completion of the the construction project or within thirty days of the date on which assessment of cess payable is finalised, whichever is earlier, to the cess collector.

Notwithstanding the provisions of sub-rule (1) and sub-rule (2), where the approval of a construction work by a local authority is required, every application for such approval shall be accompanied by crossed demand draft in favour of the Board and payable at the station at which the Board is located for an amount of cess payable at the notified rates on the estimated cost of construction.

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