THE BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE CESS ACT 1996 / RULES, 1998.  

A BRIEF INTRODUCTION The B&OCWW [Rules], 1998 has been framed by the Central Government and has come into effect on 26th March 1998, 

the day it has been published in the Gazette of India. Cess on cost of construction Under these Rules, the Cess is levied on the cost of construction incurred by an employer in connection with the building or other construction work. But the work shall not include the following;-  Cost of land ,Compensation paid or payable to a worker or his kin under the Workmen’s Compensation Act Time limit for payment of Cess ,The Cess should be paid by the employer within 30 days of completion of the construction project, OR , Within 30 days of the date of which assessment of Cess is finalized, whichever is earlier  Where the duration of the construction work exceeds One year, the Cess shall be paid within 30 days of completion of One year from the date of commencement of work and every year thereafter at the notified rates on the cost of construction Cess on Government works The Cess pertaining to building or construction work of a Government of a Public Sector Undertaking, Cess is to be deducted from the bills paid for such works In case of constructions that require the approval of the local authority, every application for such approval shall be accompanied by a demand draft for the amount of Cess to be paid If any employer wants to pay the Cess in advance he may do so. In such a case the Cess is calculated on the basis of the estimated cost of construction. The advance Cess paid shall be adjusted against the final amount of Cess payable by the employer. Transfer of Cess to the Board The Cess collected from the employer is to be transferred to the Building and Other Construction Workers’ Welfare Board constituted by the State Government within 30 days of its collection