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news details
Labour Department fails to realize levy, suffers huge financial loss
Sheer Violation of Cess Act 1996
10/18/2018 10:33:09 PM
Early Times Report

Jammu, Oct 18: J&K Department of Labour and Employment have ignored implementation of Cess Act in letter and spirit as per norms causing huge loss to state exchequer.
Sources informed Early Times that the state exchequer was losing more than Rs 50 crore annually.
They said that apart from Department of Labour and Employment, other agencies including Board of Building and Others Construction Workers (JKBOCWWB) are not paying attention to the serious issue.
"Vide Notification No. SRO 232 dated 17/07/2006, J&K building and other construction workers welfare Board was constituted vide Notification No.274 dated 31/07/2007 and reconstituted vide SRO No. 439 dated 10/12/2010", they said and added that levy of Building and other Construction Workers Welfare Cess (Labour Cess) have become operative since 17/07/2006 in the state.They further said that the Government of India have enacted building and other construction workers (condition of services) Act, 1996. "The act is applicable to the state also. The State Government in the pursuance of the act has constituted a welfare board of building and other construction workers", they added.
"The offices of the Board have established various welfare schemes related to death, injury, medical expenses, education, marriage, funeral etc. The registration officers have been appointed and the process of registration has started in the state", they said and added that unfortunately, the workforce employed in building and construction workers fall in unorganized sector and are bound to provide certain basic facilities to this labour force.
"As per the Act, the Cess shall be levied at one per cent of the total cost of project excluding land and other compensation paid to workman but as per sources, Cess Act is not being implemented properly", they said and added that all executing agencies engaged in various construction activities government as well as in private sector are liable to pay Levy of Building and Other Construction Workers Welfare Cess.
"But it has been learnt that some agencies are not paying Cess on the total cost of constructions", they said that added that unfortunately the concerned officials keep mum on it due to huge booty exchanged by them to remain silent.
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