THEBUILDINGANDOTHERCONSTRUCTION WORKERS’WELFARECESSRULES,19981
Inexerciseofthepowersconferredbysub-section(1)ofsection14of theBuildingandOtherConstructionWorkers’WelfareCessAct,1996(Act8 of1996),theCentralGovernmentherebymakesthefollowingrules,namely:—
1.Shorttitleandcommencement.—(1)TheserulesmaybecalledtheBuilding andOtherConstructionWorkers’WelfareCessRules,1998.
(2)Theyshallcomeintoforceonthedateoftheirpublicationinthe
OfficialGazette.
2.Definitions.—Intheserules,unlessthecontextotherwiserequires,—
(a)“Act”meanstheBuildingandOtherConstructionWorkers’Welfare
CessAct,1996(Act28of1996);
(b)“MainAct”meanstheBuildingandOtherConstructionWorkers (RegulationofEmploymentand ConditionsofService)Act,1996 (Act27of1996);
(c)“Form”meanstheformannexedtotheserules;
(d)allotherwordsandexpressionsusedintheserulesbutnotdefined anddefinedintheActorinthemainActshallhavethemeanings respectivelyassignedtotheminthoseActs;
(e)“specified”meansspecifiedbyaStateGovernmentbyanorder publishedintheOfficialGazette;
(f)“CessCollector”meansanofficerappointedbytheStateGovernment forcollectionofcessundertheAct;
(g)“AssessingOfficer”meansagazettedofficerofaStateGovernment oranofficerofalocalauthorityholdinganequivalentposttoagazetted officer of the State Government appointed by such State Government forassessmentofCessundertheAct;
(h)“AppellateAuthority”meansanofficer,seniorinranktotheAssessing
Officer,appointedbytheStateGovernmentforthepurposesofsection
11oftheAct.
3.Levyofcess.—Forthepurposeoflevyofcessundersub-section(1)of section3oftheAct,costofconstructionshallincludeallexpenditureincurredbyan employer in connection with the building or other construction work but shall not include—
—costofland;
—anycompensationpaidorpayabletoaworkerorhiskinundertheWorkmen’s
CompensationAct,1923.
1VideG.S.R.149(E),dated26thMarch,1998,publishedintheGazetteofIndia,Extra.,Pt. II,Sec.3(i),dated26thMarch,1998.
TheBuildingandotherconstructionworkers’WelfareCessRules,19981
4.Timeandmannerofcollection.—(1)Thecessleviedundersub-section (1)ofsection3oftheActshallbepaidbyanemployer,withinthirtydaysofcompletion oftheconstructionprojectorwithinthirtydaysofthedateonwhichassessmentof cesspayableisfinalised,whicheverisearlier,tothecesscollector.
(2)Notwithstandingtheprovisionsofsub-rule(1),wherethedurationof theprojectorconstruction workexceedsoneyear,cessshallbepaidwithinthirty daysofcompletionofoneyearfromthedateofcommencementofworkandevery year thereafteratthenotifiedrates on thecost of constructionincurredduring the relevantperiod.
(3)Notwithstandingtheprovisionsofsub-rule(1)andsub-rule(2),where thelevyofcesspertainstobuildingandotherconstructionworkofaGovernmentor ofaPublicSectorUndertaking,suchGovernmentorthePublicSectorUndertaking shalldeductorcausetobedeductedthecesspayableatthenotifiedratesfromthe billspaidforsuchworks.
(4)Notwithstandingtheprovisionsofsub-rule(1)andsub-rule(2),where theapprovalofaconstructionworkbyalocalauthorityisrequired,everyapplication forsuchapprovalshallbeaccompaniedbyacrosseddemanddraftinfavourofthe BoardandpayableatthestationatwhichtheBoardislocatedforanamountofcess payableatthenotified ratesontheestimatedcostofconstruction:
Providedthatifthedurationoftheprojectislikelytoexceedoneyear,the demanddraftmaybefortheamountofcesspayableoncostofconstruction estimatedtobeincurredduringoneyearfromthedateofcommencementand furtherpaymentsofcessdueshallbemadeaspertheprovisionsofsub-rule(2). (5) Anemployermaypayinadvanceanamountofcesscalculatedonthe
basis of theestimatedcostofconstructionalongwiththenoticeofcommencement
ofworkundersection46oftheMainActbyacrosseddemanddraftinfavourofthe
Board and payable at the station at which the Board is located:
Providedthatifthedurationoftheprojectislikelytoexceedoneyear,the demanddraftmaybefortheamountofcesspayableoncostofconstruction estimatedtobeincurredduringoneyearfromthedateofsuchcommencement andfurtherpaymentofcessdueshallbemadeaspertheprovisionsofsub-rule(2). (6) Advancecesspaidundersub-rules(3),(4)and(5),shallbeadjustedin
thefinalassessmentmadebytheAssessingOfficer.
5.TransferoftheproceedsofthecesstotheBoard.—(1)Theproceedsof the cess collected under rule 4 shall be transferred by such Government office, PublicSectorUndertakings,localauthority,orcesscollector,totheBoardalongwith the form of challan prescribed (and in the head of account of the Board) under the accountingsproceduresoftheState,bywhatevernametheyareknown.
(2)SuchgovernmentofficeofPublicSectorUndertakingmaydeductfrom the cess collected, or claim from the Board, as the case may be, actual collection expenses not exceeding one per cent, of the total amount collected.
(3)TheamountcollectedshallbetransferredtotheBoardwithinthirty daysofitscollection.
6.Informationtobefurnishedbytheemployer.—(1)Everyemployer,within thirty days of commencementof his work of payment of cess, as the case may be, furnishtotheAssessingOfficer,informationinFormI.
(2)Anychangeormodificationintheinformationfurnishedundersub-rule (1)shallbecommunicated totheAssessingOfficerimmediately butnotlaterthan thirtydaysfromthedateofaffectingthemodificationorchange.
7.Assessment.—(1)TheAssessingOfficer,onreceiptofinformationinForm Ifromanemployershallmakeascrutinyofsuchinformationfurnishedand,ifheis satisfied about the correctness of the particulars so furnished, he shall make an order of assessment within a period not exceeding six months from the date of receiptofsuchinformationinFormI,indicatingthe amountofcesspayablebythe employerandendorseacopythereoftotheemployer,totheBoardandtothecess collectoranddespatchsuchorderwithinfivedaysofthedateonwhichsuchorder ismade.
(2)The order shall inter-alia specify the amount of cess due, cess already paidbytheemployerordeductedatsourceandthebalanceamountpayableandthe date, consistent with the provision of rule 4, by which the cess shall be paid to the cesscollector.
(3)Ifonscrutinyofinformationfurnished,theAssessingOfficerisofthe opinionthatemployerhasunder-calculatedormiscalculatedthecostofconstruction orhascalculatedlessamountofcesspayable,heshallissuenoticetotheemployer forassessmentofthecess.
(4)OnreceiptofsuchnoticetheemployershallfurnishtotheAssessing Officerareplytogetherwithcopiesofdocumentaryorotherevidenceinsupportof hisclaim,withinfifteendaysofthereceiptofthenotice:
Provided that theAssessing Officer may, in the course of assessment, afford anopportunitytotheassesseetobeheardinperson,ifhesorequeststosubstantiate hisclaim.
(5)Iftheemployerfailstofurnishthereplywithintheperiodspecified undersub-rule(4),orwhereanemployerfailstofurnishinformationinFormI,the Assessing Officer shall proceed to make the assessment on the basis of available records,andotherinformationincidentalthereto.
(6)TheAssessingOfficermay,atanytimewhiletheworkisinprogress, authorise such officer to make such enquiry at the work site or from documentaryevidenceorinanyothermannerashemaythinkfitforthepurposeof estimating thecostofconstructionasaccurately aspossible.
8.Returnofoverpaidcess.—(1)WheretheAssessingOfficerhaspassedan orderofassessmentandtheemployerdecidestowithdrawfromorforeclosethe
TheBuildingandotherconstructionworkers’WelfareCessRules,19981
worksormodifiestheplanofconstructiontherebyreducingthecostofconstruction undertakenorhasbeenforcedbyothercircumstancestocalloffthecompletionof the work undertaken, he may seek revision of the assessment order by making an informationinFormIItotheAssessingOfficergivingdetailsofsuchreductionor stoppageofwork.
(2)RevisionoforderofassessmentshallbemadebytheAssessingOfficer,in thesamemannerastheoriginalorder,withinthirtydaysofreceiptofsuchinformation inFormII.(3)Followingtherevisionofassessmentaspersub-rule(2),the Assessing Officer shall, wherever necessary, endorse a copy of the revised assessment to the Board or cess collector, as the case may be, for making the refundofexcesscessasorderedintherevisedassessment.
(4)TheBoardshall,withinthirtydaysofreceiptoftheendorsementfrom theAssessingOfficerundersub-rule(3),refundtheamountspecifiedintheorderto theemployerthroughademanddraftpayableatthestationwheretheestablishmentislocated. (5) WheretheAppellateAuthorityhasmodifiedtheorderofassessment reducingtheamountofcess,refundshallbemadewithinsuchtimeasmaybe
specifiedinthatorder.
9.Exemption.—(1)AnyemployerorclassofemployersinaStateseeking exemptionundersection6ofthe ActmaymakeanapplicationtotheDirector GeneralofLabour Welfare,MinistryofLabour,GovernmentofIndia,statingthe detailsofworksundertaken,nameoftheActorcorrespondinglawinforceinthat Stateunderwhichheisliabletopaycessforthewelfareoftheconstructionworkers and amountof cess actuallypaid alongwiththe dateof such paymentand proof thereof. Acopyofsuchapplicationshallbeendorsedtoeachofthe Assessing Officerandtheboardconcerned.
(2)OnreceiptofsuchapplicationtheCentralGovernmentmay,ifitfeels necessary,seekareportfromtheStateGovernmentconcerned.
(3)Onexaminingthegrounds,factsandmeritsofsuchapplicationthe Central Government may, by notification in the Official Gazette, issue an order exemptingtheemployerorclassofemployers,asthecasemaybe,frompaymentof cesspayableunderthe Actwheresuchcessisalreadyleviedandpayableunder suchcorrespondinglaw.
(4)AssessmentproceedingsshallbestoppedbytheAssessingOfficerfor a period of thirty days commencing from the date of the receipt of a copy of the application under sub-rule (1) to him, or till the order of the Central Government undersub-rule(3)isconveyedtoanemployerorclassofemployerswhomadethe applicationundersub-rule(1),whicheverisearlier.
10.PowersofAssessingOfficerandotherofficers.—(1)AnAssessing Officer, or an officer authorised under sub-rule (6) of rule 7, if empowered by the State Government under section 7 of theAct, may,—
(a)enteranyestablishmentwherebuildingandotherconstructionworkis goingon;
(b)makeaninventoryofmaterials,machineryorotherarticleslyingatthe workplace;
(c)enquireaboutthenumberofworkersengagedinvariousactivities;
(d)requiretheproductionofanyprescribedregisteroranyotherdocuments relevanttotheassessmentofcostofconstructionornumberofworkers employed;
(e)seizeortakecopiesofanysuchrecords;
(f)makegeneralassessmentofthestageoftheconstructionworkhaving beencompleted;
(g)directtheemployeroranyotherpersoninchargeoftheplacethatno material or machinery shall be removed or disturbed for so long as is necessaryforthepurposeofanyexamination;
(h)takemeasurement,notes or photographs;
(i)exercisesuchotherpowersconsideredabsolutelynecessaryfor reasonableassessmentofcostofconstruction.
11.Dateofpayment.—Dateofpaymentofcessshallbethedateonwhichthe amountisdepositedwiththecesscollectorundersub-rule(1)ofrule4,orthedate ofdeductionatsourceundersub-rule(3)ofrule4,orthedateonwhichthedrafthas beendepositedwiththelocalauthorityundersub-rule(4)ofrule4,asthecasemaybe.
12.Penaltyfornon-payment.—(1) AnAssessingOfficer,ifitappearstohim thatanemployerhasnotpaidthe cesswithinthedateasspecifiedintheassessment orderorhaspaidlesscess,includingthecessdeductedatsourceorpaidinadvance, shallissueanoticetosuchemployerthatitshallbedeemedtobeinarrearsandsuch AssessingOfficermay,aftersuchinquiryasitdeemsfit,imposeonsuchemployer, apenaltynotexceedingsuchamountofcess:
Providedthatbeforeimposinganysuchpenalty,suchemployershallbegiven areasonableopportunityofbeingheardandifaftersuchhearingthe Assessing Officer is satisfied that the default was for any good and sufficient reason, no penaltyshallbeimposedonsuchemployer.
13.Recoveryofoverdueamount.—Forthepurposeofrecoveryofsumsdue on account of unpaid cess, interest for overdue payment or, penalty under these rules,theassessingofficershallprepareacertificatesignedbyhim,specifyingthe amountdueandsendittothecollectorofthedistrictconcernedwhoshallproceed torecoverfromthesaidemployertheamountspecifiedthereunderasifitwerean arrearoflandrevenue.
14.Appeal.—(1)Anemployeraggrievedbyanorderoftheassessmentmade underrule7orbyanorderimposingpenaltymadeunderrule12mayappealagainst suchorder,withinthreemonthsofthereceiptofsuchorder,totheAppellateAuthority.
TheBuildingandotherconstructionworkers’WelfareCessRules,19981
(2)Theappealshallbeaccompaniedwith— (a)theorderappealedagainst;
(b)acertificatefromthecesscollectortotheeffectthattheamountof cessorpenaltyorboth,asthecasemaybe,relatingtosuchappealhas beendeposited;
(c)afeeequivalenttoonepercent,oftheamountindisputeorpenaltyor both,asthecasemaybe,undersuchappeal;
(d)astatementofpointsindispute;
(e)documentaryevidencereliedupon.
(3)OnreceiptoftheappealtheAppellateAuthoritymaycallfromthe AssessingOfficerastatementonthebasisofhisassessmentorderappealedagainst, assuchAppellateAuthoritymayconsidernecessaryforthedisposalofsuchappeal. (4) TheAppellateAuthorityshallgivetheappellantanopportunityofbeing
heardinthematteranddisposeoftheappealasexpeditiouslyaspossible.
(5)OnbeingsatisfiedonthequantumofcesstheAppellateAuthorityshall confirmtheorderoftheAssessingOfficerorifinhisopiniontheassessmentwas wrong;oronthehighersideshallmodifytheorderofassessmentorifinhisopinion the assessment is on the lower side or if the basis of assessment is wrong, it shall remandbacktheassessmentordertothe AssessingOfficeralongwithhis observationstorectifythewrong.
(6)Anorderremandedbackundersub-rule(5)shallbedisposedofbythe AssessingOfficerwithinonemonthinviewoftheobservationmadebytheAppellate Authority:
Providedthatiftheamountofcessisproposedtobeenhancedtheassesseeshallbe givenanopportunityofbeingheard.
(7)NoappealshalllieagainsttheorderoftheAppellateAuthorityunder thisrule.
(8)IftheAppellateAuthorityisoftheopinionthatthequantumofpenalty imposed is on the higher side or not correctly made it shall suitably modify or set asidetheorderoftheAssessingOfficer,asthecasemaybe.
(9)Theappealunderthisruleshallbedisposedofbymakingaspeaking orderand acopyofsuchordershallbesenttoeachof‘theappellant,theAssessing OfficerandtheBoardwithinfivedaysofthedateonwhichsuchorderismade.
(10)AnorderinappealreducingtheamountofcessshallalsoasktheBoard torefundtheexcesscess.
(11)Anorderinappealreducing,enhancingorconfirmingtheordersof penalty, as the case may be, shall also specify the date by which the amount of penaltyshouldbepaid/refunded.
15.Filingofcomplaints.—(1)TheAssessingOfficer,oranyinspectorunder themainAct,oraTradeUnion,havingcometoknowofviolationofanobligationto
furnishreturn,furnishingoffalseinformation,intentionallyorwilfullyevadingor attemptingto evade the payment of cess may make a complaintto the Board. The Boardonreceivingsuchcomplaintshallexaminethecomplaintandifitsodecide mayrefersuchcomplainttotheCentralGovernmentfortakinglegalactionagainst theoffender.
(2)TheCentralGovernmentonreceivingsuchreferencemaymakesuch inquiry as may be considered necessary and authorise an inspector of appropriate jurisdictiontofileacomplaintinthecourtoflaw.
TheBuildingandotherconstructionworkers’WelfareCessRules,19981
FORMI
(Seerule7)
1. / NameofEstablishment / RegistrationNo.underBuildingandOther ConstructionWorkers’(Regulationof EmploymentandCondi-tionsofService) Act,1996.RegisteringAuthority2. / Address
3. / NameofWork
4. / No. of workers employed
5. / Dateofcommencementofwork / Estimatedperiodofwork:
Month YearDateMonth Year
6. / Estimatedcostofconstruction / Detailsofpaymentofcess
StagesCostAmountChallanNo.Advance—A
anddateDeductionatSource—D Final—F
1stYear
2ndYear
3rdYear
4thYear
Total:SignatureofEmployer
NameofEmployer
Date......
TOBEFILLEDBYASSESSINGOFFICER
7. / Dateofcompletion8. / FinalCost
9. / Dateofassessment
10. / Amountassessed
11. / DateofAppeal,ifany,
12. / DateoforderinAppeal
13. / AmountasperOrderinAppeal
14. / DateoftransferofcesstotheBoard
15. / AmounttransferredChallanNo.anddate
Signature
Designation
FORMII
[Seerule9(1)]
1.NameofEstablishmentRegistrationNo.underBuildingandOther ConstructionWorkers’(Regulationof EmploymentandCondi-tionsof
Service)Act,1996.
Address
II.DateofcommencementofworkEstimatedperiodofwork:
MonthYearDateMonthYear
Estimatedcostofwork(original)AdvanceCess/Deductionatsource
DateofAssessmentorder
AmountofCessassessed
III.Modificationtotheoriginal
estimatesReviseddateofReason completion/Dateof
stoppageActualcostestimates
Actual cost incurred
WhetherworkisbeinghandedYes/No. overtoanyotherperson/agency
forcompletion.Ifyes,Name/
Addressofsuchperson/agency.
SignatureofEmployer
NameofEmployer
Date
TOBEFILLEDBYASSESSINGOFFICER
Dateofrevisionofassessment
Amountofcessafterrevision
CessalreadyreceivedCesstoberecovered
Cesstoberefunded,ifanyReferencetoBoardforrefund; Date/number Signature Designation
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