Respected Sir,
My company has taken over the establishment with a 60-40% share. The plant that was taken over is very old, so the management has decided to reconstruct/renovate it with new equipment and civil structure. We also have a factory license.
I have reviewed the BOCW Act and observed that factories are excluded from BOCW, except for greenfield projects.
I have the following queries:
1. Will the currently licensed factory under my management that has been taken over fall under the scope of BOCW?
2. Do we need to pay a 1% cess for all civil works or not?
3. If we plan for plant expansion in the future, will we fall under the definition of BOCW?
Kindly provide clarification on these topics.
Thank you.
From India, Nizamabad
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8My company has taken over the establishment with a 60-40% share. The plant that was taken over is very old, so the management has decided to reconstruct/renovate it with new equipment and civil structure. We also have a factory license.
I have reviewed the BOCW Act and observed that factories are excluded from BOCW, except for greenfield projects.
I have the following queries:
1. Will the currently licensed factory under my management that has been taken over fall under the scope of BOCW?
2. Do we need to pay a 1% cess for all civil works or not?
3. If we plan for plant expansion in the future, will we fall under the definition of BOCW?
Kindly provide clarification on these topics.
Thank you.
From India, Nizamabad
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Dear User,
Based on your query and considering the Building and Other Construction Workers' (BOCW) Act, 1996, the following points may help clarify your doubts:
1. 🏵️ As per the BOCW Act, existing factories are usually exempted from the scope of the Act. However, this exemption is applicable only if the factory is in operation. Since your plant is under reconstruction, it may come under the ambit of the BOCW Act.
2. 🎰 Regarding the 1% cess on civil works, as per the BOCW Act, it is required to be paid for the construction work. So, if you are undertaking any construction or renovation work, you may be required to pay this cess.
3. 🔟 For your future plant expansion, if it involves any construction activity, it may come under the definition of BOCW. However, once the construction activity is over and the expanded part of the plant starts operation, it will likely be exempted from the BOCW Act.
Please note, these are general interpretations of the BOCW Act. The actual applicability may vary based on the specifics of your case and local labor laws. Hence, I would suggest you to:
- 🔞 Review the BOCW Act and local labor laws in detail.
- 🧑‍⚖️ Keep all necessary documents and licenses ready for any sort of inspection or requirement.
- 🆘 Consult a legal expert or labor law consultant for a thorough understanding and compliance.
Remember, non-compliance can lead to legal implications, so it's always better to be prepared and informed.
I hope this helps. If you have more questions, feel free to ask.
🙏 Thanks!
From India, Gurugram
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Based on your query and considering the Building and Other Construction Workers' (BOCW) Act, 1996, the following points may help clarify your doubts:
1. 🏵️ As per the BOCW Act, existing factories are usually exempted from the scope of the Act. However, this exemption is applicable only if the factory is in operation. Since your plant is under reconstruction, it may come under the ambit of the BOCW Act.
2. 🎰 Regarding the 1% cess on civil works, as per the BOCW Act, it is required to be paid for the construction work. So, if you are undertaking any construction or renovation work, you may be required to pay this cess.
3. 🔟 For your future plant expansion, if it involves any construction activity, it may come under the definition of BOCW. However, once the construction activity is over and the expanded part of the plant starts operation, it will likely be exempted from the BOCW Act.
Please note, these are general interpretations of the BOCW Act. The actual applicability may vary based on the specifics of your case and local labor laws. Hence, I would suggest you to:
- 🔞 Review the BOCW Act and local labor laws in detail.
- 🧑‍⚖️ Keep all necessary documents and licenses ready for any sort of inspection or requirement.
- 🆘 Consult a legal expert or labor law consultant for a thorough understanding and compliance.
Remember, non-compliance can lead to legal implications, so it's always better to be prepared and informed.
I hope this helps. If you have more questions, feel free to ask.
🙏 Thanks!
From India, Gurugram
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