Section 2 in The Building and Other Construction Workers Welfare Cess Act, 1996

Title: Definitions

Description: 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 (27 of 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; (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 (27 of 1996) shall have the meanings respectively assigned to them in that Act.

Title: Levy and collection of cess

Description: (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 (27 of 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. STATE AMENDMENTS Uttar Pradesh.— Amendment of section 3 of Act no. 28 of 1996.--In section 3 of the Building and Other Construction Workers Welfare Cess Act, 1996, in sub-section (1) the following explanation shall be inserted at the end, namely:-- "Explanation:--For the purpose of levy of cess under this sub-section cost of construction shall include all expenditure incurred by an employer in connection with the building or other construction work but shall not include— (a) cost of land; (b) any compensation paid or payable to a worker or his dependents under the Employees's Compensation Act, 1923; (c) expenditure uncured on such plant, equipments installed or upgraded which are not part of construction activity; (d) machines such as MRI, CT Scan, Dialysis machine etc. used for treatment of patients in hospitals." [Vide the Uttar Pradesh Act 28 of 2018, s. 2]

Title: Furnishing of returns

Description: (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, failsto 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.

Title: Assessment of cess

Description: (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, he 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.

Title: Power to exempt

Description: 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.

The Building and Other Construction Workers Welfare Cess Act, 1996