THE BUILDING AND OTHER CONSTRUCTION WORKER'S WELFARE CESS ACT, 1996
ACT NO. 28 OF 1996
[19th August, 1996]
BE it enacted by Parliament in the Forty-seventh Year of
the Republic of India as follows:-
An act 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.
1.
Short title, extent and commencement.
1. Short title, extent and commencement. (1) This Act may be
called the Building and Other Construction 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.
2.
Definitions.
2. Definitions. In this Act, unless the context otherwise
requires,-
(a) "Board" means a Building and Other Construction Workers'
Welfare Board constituted by a State Government under sub-section (1)
of section 18 of the Building and Other Construction Workers
(Regulation of Employment and Conditions of Service) Act, 1996;
(b) "Fund" means the Building and Other Construction Workers'
Welfare Fund constituted by a Board;
(c) "prescribed" means prescribed by rules made under this Act;
2
(d) words and expressions used herein but not defined and
defined in the Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996 shall have the
meanings respectively assigned to them in that Act.
3.
Levy and collection of cess.
3. Levy and collection of cess. (1) 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 per cent. but not
less than one per cent. of the cost of construction incurred by an
employer, as the Central Government may, by notification in the
Official Gazette, from time to time specify.
(2) 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.
(3) 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 per cent. of the amount
collected.
(4) Notwithstanding anything contained in sub-section (1) or
sub-section (2), the cess leviable under this Act including payment of
such cess in advance may, 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.
4.
Furnishing of returns.
4. Furnishing of returns. (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 under section 3, falls to furnish any
return under sub-section (1), the officer or the authority shall give
a notice requiring such person to furnish such return before such date
as may be specified. in the notice.
5.
Assessment of cess.
5. Assessment of cess. (1) The officer or 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 or itself that the particulars stated in the
return are correct, by order, assess the amount 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, be or it shall, after
making or causing to be made such inquiry as he or it thinks fit, by
order, assess the amount of cess payable by the employer.
(3) 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.
6.
Power to exempt.
6. Power to exempt. Notwithstanding anything contained in this
Act, the Central Government may, by notification in the Official
Gazette, exempt any employer or class of employers in a State from the
payment of cess payable under this Act where such cess is already
levied and payable under any corresponding law in force in that State.
3
7.
Power of entry.
7. Power of entry. Any officer or authority of the State
Government specially empowered in this behalf by that Government may-
(a) with such assistance, if any, as he or it may
think fit, enter at any reasonable time any place where
he or it considers it necessary to enter for carrying
out the purposes of this Act including verification of
the correctness of any particulars furnished by any
employer under section 4;
(b) do within such place anything necessary for the
proper discharge, of his or its duties under this Act;
and
(c) exercise such other powers as may be prescribed.
8.
Interest payable on delay in payment of cess.
8. Interest payable on delay in payment of cess. If any
employer fails to pay any amount of cess payable under section 3
within the time specified in the order of assessment, such employer
shall be liable to pay interest on the amount to be paid at the rate
of two per cent. for every month or part of a month comprised in the
period from the date on which such payment is due tilt such amount is
actually paid.
9.
Penalty for non-payment of cess within the specified time.
9. Penalty for non-payment of cess within the specified time.
If any amount of cess payable by any employer under section 3 is not
paid within the date specified in the order of assessment made under
section 5, it shall be deemed to be in arrears and the authority
prescribed in this behalf may, after making such inquiry as it deems
fit, impose on such employer a penalty not exceeding the amount of
cess:
Provided that, before imposing any such penalty, such employer
shall be given a reasonable opportunity of being heard and if after
such hearing the said authority is satisfied that the default was for
any good and sufficient reason, no penalty shall be imposed under this
section.
10.
Recovery of amount due under the Act.
10. Recovery of amount due under the Act. Any amount due under
this Act (including any interest or penalty) from an employer may be
recovered in the same manner as an arrear of land revenue.
11.
Appeals.
11. Appeals. (1) Any employer aggrieved by an order of
assessment made under section 5 or by an order imposing penalty made
under section 9 may, within such time as may be prescribed, appeal to
such appellate authority in such form and in such manner as may be
prescribed.
(2) Every appeal preferred under sub-section (1) shall be
accompanied by such fees as may be prescribed.
(3) After the receipt of any appeal under sub-section (1), the
appellate authority shall, after giving the appellant an opportunity
of being heard in the matter, dispose of the appeal as expeditiously
as possible.
(4) Every order passed in appeal under this section shall be
final and shall not be called in question in any court of law.
12.
Penalty.
12. Penalty. (1) Whoever, being under. an obligation to furnish
a return under this Act, furnishes any return knowing, or having
reason to believe, the same to be false shall be punishable with
imprisonment which may extend to six months, or with fine which may
extend to one thousand rupees, or with both.
(2) Whoever, being liable to pay cess under this Act, wilfully
or intentionally evades or attempts to evade the payment of such cess
shall be punishable with imprisonment which may extend to six months,
or with fine, or with both.
(3) No court shall take cognizance of an offence punishable
under this section save on a complaint made by or under the authority
of the Central Government.
13.
Offences by companies.
13. Offences by companies. (1) Where an offence under this Act
has been committed by a company, every person who, at the time the
offence was committed, was in charge of, and was responsible to, the
company for the conduct of the business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly:
4
Provided that nothing contained in this sub-section shall render
any such person liable to any punishment if he proves that the offence
was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where
an offence under this Act has been committed with the consent or
connivance of, or is attributable to any neglect on the part of, any
director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be deemed to
be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
Explanation.-For the purposes of this section,-
(a) "company" means any body corporate and includes a firm or
other association of individuals; and
(b) "director", in relation to a firm, means a partner in the
firm.
14.
Power to make rules.
14. Power to make rules. (1) The Central Government may, by
notification in the Official Gazette, make rules for carrying out the
provisions of this Act.
(2) Without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters,
namely:-
(a) the manner in which and the time within which the cess shall
be collected under sub-section (2) of section 3;
(b) the rate or rates of advance cess leviable under sub-section
(4) of section 3;
(c) the particulars of the returns to be furnished, the officer
or authority to whom or to which such returns shall be furnished and
the manner and time of furnishing such returns under sub-section (1)
of section 4;
(d) the powers which may be exercised by the officer or
authority under section 7;
(e) the authority which may impose penalty under section 9;
(f) the authority to which an appeal may be filed under sub-
section (1) of section 11 and the time within which and the form and
manner in which such appeal may be filed;
(g) the fees which shall accompany an appeal under sub-section
(2) of section 11; and
(h) any other matter which has to be, or may be, prescribed.
(3) Every rule made under this Act shall be laid, as soon as may
be after it is made, before each House of Parliament, while it is in
session for a total period of thirty days which may be comprised in
one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any
modification in the rule or both Houses agree that the rule should not
be made, the rule shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any
such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.
15.
Repeal and saving.
15. Repeal and saving. (1) The Building and Other Construction
Workers' Welfare Cess Third Ordinance, 1996 (Ord. 26 of 1996), is
hereby repealed.
(2) Notwithstanding such repeal, anything done or any action
taken under the said Ordinance shall be deemed to have been done or
taken under the corresponding provisions of this Act.
![What Can We [PA] Do For You?](images/users_forum_12.jpg){kind=small}
