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IS LABOUR TAX PAYABLE BY THE CONTRACTOR WHO WAS APPOINTED LATER ON?
22-Jun-2023 (In Labour & Service Law)
Hi My partner recieved the notice from labourlabour department to pay the labour cess under 1996. But we have handed over the posation to the buyer. We had opinted the contractor to the work. The labour cess is our liability or of the contractors.
Dear queriest, you have written that you sold your enterprise much before but you have not informed about details of your sales deed and the contract which you had with your labor contractor. You need to furnish entire details. Then only I will able to give you concrete advise.
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Adv. Devesh Tripathi
Jaipur | 100+ Answers
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Section 3 of The Building And Other Construction Workers’ Welfare Cess Act, 1996 which describes about the liability of contractors.
In the case of Builders Association of India vs UOI [(139) 2007 DLT 578] and New India Construction Company vs State of Haryana by observing that under the scheme of the BOCW Act, the intention was not to confine the applicability of the acts to the owner or the contractor but to cover both. The cess should be collected from either the owner or the contractor. The court has also suggested that if the cess is not collected from the contractor then the same may be collected from the owner.
Also in the case of delhi metro rail corporation limited vs simplex infrastructures limited, it has been held by Delhi High Court that there is nothing wrong in deduction of amount of cess from bills of contractors. (full judgment attached with the mail)
In the case of Builders Association of India vs UOI [(139) 2007 DLT 578] and New India Construction Company vs State of Haryana by observing that under the scheme of the BOCW Act, the intention was not to confine the applicability of the acts to the owner or the contractor but to cover both. The cess should be collected from either the owner or the contractor. The court has also suggested that if the cess is not collected from the contractor then the same may be collected from the owner.
Also in the case of delhi metro rail corporation limited vs simplex infrastructures limited, it has been held by Delhi High Court that there is nothing wrong in deduction of amount of cess from bills of contractors. (full judgment attached with the mail)
Helpful?
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Adv. Divesh Sharma
Jaipur | 100+ Answers
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