labour cess
Rupesh
(Querist) 06 October 2010
This query is : Resolved
Dear Experts,
please clear my query,
Labour cess is the responsibility of principal employer or contractor. If in contract between principal employer and contractor, labour cess point is not mentioned. Can Principal employer deduct labour cess from contractor?
Jacob Pratap
(Expert) 07 October 2010
The concept of Principal Employer is available in the Contract Labour (RE&CS) Act, 1970 but is not available either in the Building and other Construction (RE&CS) Act, 1996 or the Building and other Construction Workers Welfare Cess Act, 1996. In case the work is of Govt/PSU/Local Authority etc., and is done through a contractor, the cess is to be deducted at source from the running bills of the contractor. However, if it a private construction, the cess is payable by the employer i.e. the owner of the establishment, to whom you may refer to as principal employer, whether or not there is any clause in the contract regarding the payment of cess by the contractor. The Assessing Officer will not ask the contractor to deposit the cess, instead he will ask the employer to deposit the same.
