Can anyone please share whether BOCW Act / BOCW Cess is applicable for Construction within the Factory ? Sandeep Singh 9988881602
From India, Bhatinda
From India, Bhatinda
Dear Sandeep ji,
Please read the definition of 'building or other construction work' as defined under section 2(d) of the main Act. This definition does not include any building or any construction work to which the provisions of the Factory Act, 1948, or the Mines Act, 1952 apply. Therefore, the Act is not applicable to building or construction work in the precincts of factories and mines.
Since the main Act is not applicable to building or construction work in the precincts of factories and mines, Cess is not applicable to such building or construction work. I came across many incidences in which the authorities demanding Cess for building or construction work in the precincts of factories. This is wrong and illegal.
From India, Mumbai
Please read the definition of 'building or other construction work' as defined under section 2(d) of the main Act. This definition does not include any building or any construction work to which the provisions of the Factory Act, 1948, or the Mines Act, 1952 apply. Therefore, the Act is not applicable to building or construction work in the precincts of factories and mines.
Since the main Act is not applicable to building or construction work in the precincts of factories and mines, Cess is not applicable to such building or construction work. I came across many incidences in which the authorities demanding Cess for building or construction work in the precincts of factories. This is wrong and illegal.
From India, Mumbai
Sir, thanks for your valuable inputs but if management want to baricat the construction area within factory permisse and want to declare that area out of factory. Is there any provision in law?
From India, Bhatinda
From India, Bhatinda
Dear Sandeep ji,
If your management wants to declare the construction area outside the factory premises and come under the purview of the BOCW Act & pay the cess, who will object? Our government needs money from companies like yours.
Thank you.
From India, Mumbai
If your management wants to declare the construction area outside the factory premises and come under the purview of the BOCW Act & pay the cess, who will object? Our government needs money from companies like yours.
Thank you.
From India, Mumbai
Dear Friends,
Before anyone tells me that the cess money doesn't go to the government, I want to clarify that this money goes into the account of the board under the Act. A significant amount of money is held by every board.
From India, Mumbai
Before anyone tells me that the cess money doesn't go to the government, I want to clarify that this money goes into the account of the board under the Act. A significant amount of money is held by every board.
From India, Mumbai
Dear Sandeep,
There are following points to be considered for BOCW act applicability:
1) As per the ACT “It applies to every establishment which employs, or had employed on any day of the preceding twelve months, ten or more building workers in any building or other construction work. “
2) Your company’s nature / scope of work is Production as per my understanding.
3) Hence, it is not applicable to your company.
4) You must be having agreement with engineering Construction Company(Who actually carry out work).
5) So as a principle employer Ask that company to maintain all registered under this act.
6) Every month take photocopy of all registered and just maintained at your end for record.
7) Please make sure to collect photocopy of labour insurance from contractors.
Thanks,
Pramila
From India, Mumbai
There are following points to be considered for BOCW act applicability:
1) As per the ACT “It applies to every establishment which employs, or had employed on any day of the preceding twelve months, ten or more building workers in any building or other construction work. “
2) Your company’s nature / scope of work is Production as per my understanding.
3) Hence, it is not applicable to your company.
4) You must be having agreement with engineering Construction Company(Who actually carry out work).
5) So as a principle employer Ask that company to maintain all registered under this act.
6) Every month take photocopy of all registered and just maintained at your end for record.
7) Please make sure to collect photocopy of labour insurance from contractors.
Thanks,
Pramila
From India, Mumbai
Dear Pramila ji, According to you, when the Act is not applicable then why you are advising PE to maintain all the registers under the Act?
From India, Mumbai
From India, Mumbai
Sir,
Just for the record, this will help the principal employer in case any mishap happens at the site. It will also aid in pressurizing the contractor to maintain it.
Seniors, please correct me if I am wrong.
From India, Mumbai
Just for the record, this will help the principal employer in case any mishap happens at the site. It will also aid in pressurizing the contractor to maintain it.
Seniors, please correct me if I am wrong.
From India, Mumbai
Dear seniors,
I discussed the matter with the Assistant Director of Factories, who is a cess collector in Punjab. He explained that if construction or expansion work is carried out within or outside the factory premises, CESS is payable in both cases because it is applicable based on the construction cost.
While we are committed to ensuring statutory compliances, we are hesitant to pay any additional amount towards CESS.
To clarify further:
1. The current construction area falls within the factory premises.
2. We possess an approved plot plan.
3. Once the construction area is barricaded, we intend to utilize the same factory gate for labor entry.
I have the following questions:
1. Is CESS applicable for expansions within the Factory?
2. If so, why is it mandatory? Could you specify the relevant section?
3. Is there a provision in the act to barricade an area within the factory and deem it as outside the factory premises?
Your cooperation is vital in ensuring compliance.
Thanks and Regards,
Sandeep Singh
From India, Bhatinda
I discussed the matter with the Assistant Director of Factories, who is a cess collector in Punjab. He explained that if construction or expansion work is carried out within or outside the factory premises, CESS is payable in both cases because it is applicable based on the construction cost.
While we are committed to ensuring statutory compliances, we are hesitant to pay any additional amount towards CESS.
To clarify further:
1. The current construction area falls within the factory premises.
2. We possess an approved plot plan.
3. Once the construction area is barricaded, we intend to utilize the same factory gate for labor entry.
I have the following questions:
1. Is CESS applicable for expansions within the Factory?
2. If so, why is it mandatory? Could you specify the relevant section?
3. Is there a provision in the act to barricade an area within the factory and deem it as outside the factory premises?
Your cooperation is vital in ensuring compliance.
Thanks and Regards,
Sandeep Singh
From India, Bhatinda
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.