From
Financial Commissioner & Principal Secretary to Govt. Haryana,
Town & Country Planning Department.
To
The Director,
Town & Country Planning,
Haryana, Chandigarh.
E-mail: [email protected]
Memo No.Misc-2057-5/25/2008-2TCP
Dated: Chandigarh, the 25/2/2010
Subject: Collection of Cess where the approval of construction works are granted by
Department.
Ref. Labour Commissioner-cum-Chief Inspector of Factories, Haryana memo No.153,
dated 1.2.2010 on the subject cited above.
Financial Commissioner & Principal Secretary to Govt. Haryana, Labour
Department informed the Department that under the Building and Other Construction
Workers Welfare Cess Act, 1996, the cess is required to be collected for building & other
construction work, as mentioned in section 2(d) of the Building & Other Construction
Workers (Regulation of Employment & Conditions of Service) Act, 1996. The Building and
Other Construction Workers Welfare Cess Rules, 1998 (Cess Rules) provide for levy and
collection of cess at the rate of 1% of the cost of construction incurred by employer in
building and other construction works. The cost of construction shall include all expenditure
incurred by an employer in connection with building and other construction work but shall
not include the cost of land. The provisions of the Act, however, are not applicable to
individual residential house whose total cost of construction does not exceed Rs. 10 Lakhs.
The amount of cess to be deposited with the Haryana Building and Other Construction
Workers Welfare Board is meant for the welfare of workers engaged in building and other
construction activities in the State.
2. In view of above statutory provisions, before granting approval of
construction work i.e. in the form of building plans, which are approved under the
provisions of the Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated
Development Act, 1963 and Rules thereof, the Department is advised to obtain estimated
cost of the construction, as per guidelines issued by Labour Department and collect upfront
an amount of 1% of the estimated cost furnished by way of a cross Demand Draft in favour
of the “Secretary, Haryana Building and Other Construction Workers Welfare Board,
payable at Chandigarh”. The guideline in the form of rates for assessment of Cess for
various projects is at Annexure ‘A’. If however, the duration of the project is likely to exceed
one year, the demand draft may be for the amount of cess payable on cost of construction
estimated to be incurred during one year from the date of commencement and further
payments of cess due shall be made subsequently. The Department shall forward the said
amount, which is collected in the form of cess with forwarding letter to “Secretary, Haryana
Building and Other Construction Workers Welfare Board” within 30 days of its collection.
The Department before remitting the amount of cess of the Board may deduct 1% of the total
amount of cess collected for meeting the administration expenses of the Department.
3. For implementation of above, a separate bank account may be opened for this
purpose at the Directorate and necessary condition may be levied regarding payment of cess
in the bilateral agreement, which is signed at the time of grant of license to a private
colonizer. In case of Change of Land Use permissions, only residential houses below Rs.10
Lakhs construction cost are exempted from payment of cess, but for rest of the cases, the
condition may be levied in the permission letter. The cases for approval of building plans,
which are in pipe-line or the cases, where the occupation certificate is being granted, the
separate communication may be sent to all concerned colonizers/applicants and cess may be
collected. The Annexure ‘A’ may be hosted on Website of the Department alongwith the
proforma for calculation of cess under the Building and Other Construction Workers Welfare
Cess Rules, 1998, which is at Annexure ‘B’, so that individual applicants/colonizers can
assess the amount of cess and can deposit the cess.
(Sarita Diddi)
Superintendent,
Financial Commissioner & Principal Secretary to Govt. Haryana,
Town & Country Planning Department.
Endst. No.Misc-2057/-5/25/2008-2TCP Dated: 25/2/2010
A copy is forwarded to Labour Commissioner-cum-Chief Inspector of
Factories, Haryana, Chandigarh for information.
(Sarita Diddi)
Superintendent,
Financial Commissioner & Principal Secretary to Govt. Haryana,
Town & Country Planning Department.
ANNEXURE ‘A’
List of Rates for assessment of cess.
Residential
Category of building Minimum applicable
rates per square feet of
covered area.
The house constructed by an The construction is of superfine Rs. 1000
individual type ‘A’
The construction is of medium Rs. 750
type ‘B’
Group Housing Societies or The multi-story flats having Rs. 1200
Developers/ Builders basement and the construction
constructing residential multi- is of superfine type ‘A’
storey flats The multi-story flats having Rs. 950
basement and construction is
of medium type ‘B’
Cooperative Societies The multi-story flats having Rs. 1000
construction of superfine type
‘A’
The multi-story flats having Rs. 800
construction of medium type
‘B’
Commercial
Category of building Minimum applicable
rates per square feet
of covered area.
The commercial building Multi-story office complex, I.T. enabled Rs. 1200
used for offices or I.T. services industry Show Room building
enabled services or Show having superfine type of construction
Rooms ‘A’
Multi-story office complex, I.T. enabled Rs. 1000
services industry Show Room building
having medium type of construction
‘B’
Multi-story office complex, I.T. enabled Rs. 800
services industry Show Room building
having simple type of construction ‘C’
Shopping Malls Shopping Malls having multi-story Rs. 1500
building with basement, multiplex
inside and constructed with superfine
construction ‘A’
Shopping Malls having multi-story Rs. 1200
building with basement, with or with
out multiplex inside with medium type
of construction ‘B’
Auditorium or Banquette The building constructed for the Rs. 1000
Hall purposes of social use like Auditorium
or Banquette Hall having construction
superfine type ‘A’
The building constructed for the Rs. 800
purposes of social use like Auditorium
or Banquette Hall having construction
medium type ‘B’
Educational, Institutional, Training, Dharmshala, Community Centre
Category of building Minimum applicable rates
per square feet of covered
area.
The building constructed for the use or Rs. 1000
purposes of Educational, Institutional,
Training centre have superfine construction
‘A’
The building constructed for the use for Rs. 700
purposes of Educational, Institutional,
Training centre have medium construction
‘B’
The building constructed for the use for Rs. 500
purposes of Educational, Institutional,
Training centre have simple type
construction ‘C’
Industrial
For the building used for carrying Category of building Minimum applicable
out manufacturing activities rates per square feet of
covered area.
The building with RCC Rs. 600
roofing ‘A’
The building with ACC/ Rs. 450
GI Sheets roofing ‘B’
In the industrial buildings the rate The office block having Rs. 1000
for the office block would be superfine type
estimated separately. construction ‘A’
The office block having Rs. 800
Normal type construction
‘B’
Hotels & Clubs
Category of building Minimum
applicable rates
per square feet of
covered area.
Hotel and club with five Star and above facilities ‘A’ Rs. 2000
Hotel and club below five star facilities ‘A’ Rs. 1500
Hospitals
Category of building Minimum
applicable rates
per square feet of
covered area.
The building constructed with superfine construction ‘A’ Rs. 1200
The building constructed for the purpose of hospital Rs. 800
with medium or simple construction ‘B’
External/Internal Services laid by developers
Category of building Minimum applicable
rates per square feet
of covered area.
The developer who develop the land for the The rates as
construction like laying of sewerage line, external applicable to HUDA
development, internal development, laying of roads would be considered
etc. for external
development and
actual cost incurred
by employer for
internal development
works would be
considered.
Construction of grid station building by the private The guiding
developer for electricity. rates/norms of
Haryana Vidyut
Vitran Nigams,
would be considered
for construction of
power stations and
other constructional
purposes.
Religious
Category of building Minimum applicable
rates per square feet
of covered area.
The building construction for the use for religious Rs. 500
purposes ‘B’
Amusement Park/Golf Course/Other recreational projects.
Category of building Minimum applicable
rates per square feet of
covered area.
The development of amusement park/golf couse/ The actual cost of
Other recreational projects. construction incurred
would be assessed by
a Cost Assessment
Committee constituted
for the said purpose
The above rates/norms are to be taken as the minimum cost of construction
for the cost estimation.
ANNEXURE ‘B’
PROFORMA FOR THE CALCULATION OF CESS UNDER THE BUILDING AND
OTHER CONSTRUCTION WORKERS WELFARE CESS RULES, 1998
Sr. Particulars
No.
01. Name and address of the establishment
02. Probable date of commencement of work.
03. Probable date of completion.
04. Estimated cost of construction to be calculated as per
norms/rates.
05. Amount of cess payable @ 1% of the total cost of
construction excluding the cost of land and also the cost of
plant and machinery to be used in the process in the
factory.
06. If duration is more than one year, the estimated cost of Estimated cost of
construction in the first year and cess amount construction =
Cess Amount =
07. Details of the demand draft payable in favour of Secretary,
Haryana Building and Other Construction workers Welfare
Board (Amount, Number, Date and name of the Bank).
Signature of employer-
Name of Employer
Date:
