Labour cess applicablity
We represent an SPV company created with the purpose of construction of Road on HAM (Hybrid Annuity Mode). We are developing the project of in the state of Gujarat as a concessionaire / SPV Company. The project been developed on behalf of NHAI is 60% EPC and 40% Annuity mode. We have attained License under Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Central Rules, 1998) with as an Employer. To execute the job work, we have engaged a contractor who would be executing the project under our supervision. The Labour Cess is deducted by the client (NHAI) from the payments been made by us to them on raising of the Bill, before the payment is made. The amount is debited from our payment before being released. We seek your clarification :- 1. Does my contractor, whom we have engaged as a an execution partner required to get registered under Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Central Rules, 1998 ? 2. Since, 1% of the LABOUR CESS from the Bill raised to the client (NHAI) is already deducted by them, do we need to deduct the LABOUR CESS from our contractor and deposit again. Though, we believe it would be a double payment of Cess on the same property. Since our bill to the client includes the bill amount raised by our Contractor also. 3. Our Contractor complies to all Labour and Welfare laws and this is supervised by us. We seek your advise for not only better understanding the Act., but also implementing the same in toto.