The Building and Other Construction Workers Welfare Cess Act, 1996

(1) This Act may be called the Building and OtherConstruction Workers Welfare Cess Act, 1996. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 3rd day of November, 1995.

In this Act, unless the context otherwise requires,-- (a) "Board" means a Building and Other Construction Workers' Welfare Board constituted by aState Government under sub-section (1) of section 18 of the Building and Other ConstructionWorkers (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996); (b) "Fund" means the Building and Other Construction Workers' Welfare Fund constituted by aBoard; (c) "prescribed" means prescribed by rules made under this Act; (d) words and expressions used herein but not defined and defined in the Building and OtherConstruction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996)shall have the meanings respectively assigned to them in that Act.

(1) There shall be levied and collected a cess for the purposes of theBuilding and Other Construction Workers (Regulation of Employment and Conditions of Service) Act,1996 (27 of 1996), at such rate not exceeding two per cent. but not less than one per cent. of the cost ofconstruction incurred by an employer, as the Central Government may, by notification in the OfficialGazette, from time to time specify. (2) The cess levied under sub-section (1) shall be collected from every employer in such manner andat such time, including deduction at source in relation to a building or other construction work of aGovernment or of a public sector undertaking or advance collection through a local authority where anapproval of such building or other construction work by such local authority is required, as may beprescribed. (3) The proceeds of the cess collected under sub-section (2) shall be paid by the local authority or theState Government collecting the cess to the Board after deducting the cost of collection of such cess notexceeding one per cent. of the amount collected. (4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable underthis Act including payment of such cess in advance may, subject to final assessment to be made, becollected at a uniform rate or rates as may be prescribed on the basis of the quantum of the building orother construction work involved. STATE AMENDMENTS Uttar Pradesh.-- Amendment of section 3 of Act no. 28 of 1996.--In section 3 of the Building and OtherConstruction Workers Welfare Cess Act, 1996, in sub-section (1) the following explanation shall beinserted at the end, namely:-- "Explanation:--For the purpose of levy of cess under this sub-section cost of construction shallinclude all expenditure incurred by an employer in connection with the building or other constructionwork but shall not include-- (a) cost of land; (b) any compensation paid or payable to a worker or his dependents under the Employees'sCompensation Act, 1923; (c) expenditure uncured on such plant, equipments installed or upgraded which are not part ofconstruction activity; (d) machines such as MRI, CT Scan, Dialysis machine etc. used for treatment of patients inhospitals." [Vide the Uttar Pradesh Act 28 of 2018, s. 2]

(1) Every employer shall furnish such return to such officer or authority,in such manner and at such time as may be prescribed. (2) If any person carrying on the building or other construction work, liable to pay the cess undersection 3, failsto furnish any return under sub-section (1), the officer or the authority shall give a noticerequiring such person to furnish such return before such date as may be specified in the notice.

(1) The officer or authority to whom or to which the return has beenfurnished under section 4 shall, after making or causing to be made such inquiry as he or it thinks fit andafter satisfying himself or itself that the particulars stated in the return are correct, by order, assess theamount of cess payable by the employer. (2) If the return has not been furnished to the officer or authority under sub-section (2) of section 4,he or it shall, after making or causing to be made such inquiry as he or it thinks fit, by order, assess theamount of cess payable by the employer. (3) An order of assessment made under sub-section (1) or sub-section (2) shall specify the date withinwhich the cess shall be paid by the employer.