Construction Cost For The Purpose Of Paying Construction Labour Cess For Panchayat Approval

Dear Venkat,In the BOCW Act, construction cost is the total cost of the work/project, including the manpower cost. Cess is 1% of the total cost of the project. For example, if the total cost of the project is 4 lakh, then the cess would be 4000.

Dear Mr. Venkat,As a matter of fact, the Contractor has to pay a minimum of 1% and a maximum of 2% Cess as fixed by the appropriate Government. The Cess is to be calculated from the work done during the financial year, or if the work period is less than 1 year, ...

Dear VK Yadav,Some authorities are deducting Cess on the total cost, while a separate section is mentioned in the contract. It can be a challenge to the honorable court.

Dear Sir,I am working as a contractor with Purvanchal Vidyut Vitran Nigam Limited. My client has awarded a work contract worth Rs. 18 crores, which includes the supply of materials and erection work. However, my contact number is separate for the supply and erec...

Kindly explain where it is written that the entire project cost shall be involved.It is inquired whether in a scenario where a factory is under construction, and the building, plant, and machinery fabrication and erection work are progressing simultaneously with...

Dear Jacob,The fee structure under the BOCW and Cess Act of 1996, as per Section 7 of the Central Rules in Chandigarh.Thank you.

Hi Team Members,Could anyone provide insight into the definition of construction cost under the BOCW Act? What components/heads should we consider when calculating cess?Venkat

Your answer to your query lies in rule 3 of the Building and Other Construction Workers Welfare Cess Act, 1998 where the cost of construction is stated as:"3\. Levy of Cess—For the purpose of levy of cess under sub-section(l) of section 3 of the Act, cost of con...