GOVERNMENT OF ANDHRA PRADESH

ABSTRACT
ACTS Building and Other Construction Workers (Regulation of Employment
and Conditions of Service) Act, 1996 (Central Act 27 of 1996) (Main Act) and
the Andhra Pradesh Rules made there under; the Building and Other
Construction Workers Welfare Cess Act, 1996 (Central Act 28 of 1996)
(Cess Act) and the Building and Other Construction Workers Welfare Cess
Rules, 1998 Compliance with the statutory provisions by all the
Departments and Public Sector Undertakings Orders Issued.
LABOUR EMPLOYMENT TRAINING & FACTORIES (Lab.II) DEPARTMENT
G.O.Ms.No.111

1.
2.

Dated. 15.12.2009.
Read the following:

G.O.Ms.No.42, LET & F (Lab.II) Dept, dt.30.04.07.

From the COL, A.P. Lr.No.C.Cell/8006/07-1, dt.14.06.07.

ORDER:
The Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996 (Central Act 27 of 1996)
(Main Act) and the Building and Other Construction Workers Welfare Cess
Act, 1996 (central Act 28 of 1996) (Cess Act) are enacted by the Central
Government with an objective to collect Cess from the employers
undertaking Building or Other Construction Work and to implement welfare
measures for the construction workers who are registered as beneficiaries
with the Building and Other Construction Workers Welfare Board constituted
by the State Government. Besides there are provisions for enforcement of
regulatory conditions for safety, health and welfare of the workers working
in the construction activity. The Central Government have framed the
Building and Other Construction Workers Welfare Cess Rules, 1998. The
Andhra Pradesh Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Rules, 1999 have been framed
under the Main Act vide G.O.Ms.No.69, Labour, Employment, Training and
Factories (Lab.II) Department, dated 3.12.1999 which have been amended
vide G.O.Ms.No.57, LET & F (Lab.II) dt.26.6.2007; and the Andhra Pradesh
Building and Other Construction Workers Welfare Board has been
constituted by the Government vide G.O.Ms.No.41, LET & F (Lab.II)
Dt.30.4.2007.
2.
The important provisions of the Main Act and the Cess Act have been
enumerated in the Annexure I:
3.
All the Administrative Departments are requested to issue instructions
immediately to the Commissionrates / Directorates, State Public
Undertakings/Local Bodies etc. under their Administrative Control,(i) to comply with the statutory provisions of the Building and Other
Construction workers (Regulation of Employment and Conditions of
Service) Act, 1996 (Main Act) and the Andhra Pradesh Rules, 1999
made thereunder; Building and Other Construction Workers Welfare
Cess Act, 1996 (Cess Act) and Cess Rules, 1998 made there under by
deducting 1% Cess from the Bills payable to the contractors /
executing agencies with effect from 26.6.2007 in respect of all the
works covered by the definition of Building or Other Construction
.. 2 .

-- 2 -Work under the Act; and it includes all expenditure incurred by an

employer in connection with the building or other construction works
and it excludes the costs of land and any compensation paid or
payable to a worker or his kin under the Workmens Compensation
Act, 1923.
(ii) to remit the said Cess amount deducted by them/ collected by
them as the case may be, on the next working day of
deduction/collection invariably by way of Challan into the Andhra Bank
as per the accounting procedure notified under G.O.Ms.No.42, LET & F
(Lab.II) Dept, dated 30.04.2007(Annexure-2). However, where
payments are made by P.A.O.s/A.P.A.Os, the amount shall be remitted
once in a month. The amount deducted by the P.A.O.s/A.P.A.O.s
during the month from 1st day to last day shall be remitted by them
invariably before 10th of the succeeding month.
(iii) All the Departments undertaking Building or Other Construction
works should submit an Annual Return as per the Annexure 4 to the
Secretary, Andhra Pradesh Building and Other Construction Workers
Welfare Board, T.Anjaiah Samkshema Bhavan, Near RTC X Roads,
Hyderabad, for every financial year, so as to reach the Board before
15th May of the succeeding year.
(iv) All the Drawing and Disbursing Officers of the State and all the
Government agencies are requested to collect 1% Cess on the Cost of
Construction defined as per Section 3 of the Cess Act and Rule 3 of the
Rules made there under, as also the notification dated.26.09.1996
issued by the Central Government, with effect from 26.06.2007 the
day from which the Cess Fund Orders have come into effect.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
P. RAMAKANTH REDDY
CHIEF SECRETARY TO GOVERNMENT
To
All Departments of Secretariat.
All Heads of Department.
All Directors of Works Accounts A.P. Hyderabad, with 50 copies of the order.
All District Collectors.
The Accountant General, Andhra Pradesh, Hyderabad.
The Advocate General, A.P. High Court, Hyderabad.
The Commissioner, Printing, Stationary and Store purchase, Andhra Pradesh,
Hyderabad. (with a request to publish the notification in the A.P. Gazette and
furnish 10 copies to Government and 50 copies to Commissioner of Labour, A.P.,
Hyderabad)
The Director Treasuries Accounts, A.P. Hyderabad.
The Pay & Accounts Officer, A.P. Hyderabad.
Copy to:
The I & PR, Publicity Cell, Secretariat, Hyderabad.
The Secretary to State Legislative Assembly, Hyderabad.
The P.S. to Principal Secretary to Chief Minister.
The P.S to Special Secretary to Chief Minister.
The P.S. to Chief Secretary to Government.
The P.s. to Honble Minister for Labour & Factories Dept.
The CAG, New Delhi.
All District Treasury Officers in the State
// FORWARDED:: BY ORDER //
SECTION OFFICER

-- 3 -All the G.Os. & Instruction issued by the Labour Department on the Building
& Other Construction Workers Act are available in the E Mail Address
[email protected] And the Password is 123456
Annexure I (Provisions)
The Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996 (Central 27 of
1996) (Main Act) and the Andhra Pradesh Rules made there under;
The Building & Other Construction Workers Welfare Cess Act, 1996
(Central 27 of 1996) (Cess Act)
and the
Building & Other
Construction Workers Cess Rules, 1998
1.Building or other construction work has been defined (Section 2(d)) as
the construction, alteration, repairs, maintenance or demolition, of or, in
relation to buildings, streets, roads, railways, tramways, airfields,
irrigation, drainage, embankment and navigation works, flood
control works (including storm water drainage works), oil and gas
installations, electric lines, wireless, radio, television, telephone,
telegraph and overseas communications, dams, canals, reservoirs,
watercourses, tunnels, bridges, viaducts, aqueducts, pipelines,
towers, cooling towers, transmission towers and such other work as
may be specified in this behalf by the appropriate Government by
notification but does not include any building or other construction work to
which the provisions of the Factories 1948 or the Mines Act, 1952 apply;
2. The Act applies to all Establishments employing 10 or more workers on
any day. The term Establishment means Section 2(j) any establishment
belonging to , or under the control of, Government, any body corporate
or firm, and individual or association or other body of individuals
which or who employs building workers in any building or other
construction work; and includes an establishment belonging to a contractor,
but does not include an individual who employs such workers in any
building or construction work in relation to his own residence the
total cost of such construction not being more than rupees ten lakhs:
3. The term Employer has been defined (Section 2(i)) as in relation to an
establishment, means the owner thereof, and includes:(i) in relation to a building or other Construction work carried on by
or under the authority specified in this behalf, or where no
authority is specified, the head of the department;
(ii)
in relation to a building or other construction work carried on by
or on behalf of a local authority or other establishment, directly
without any contractor, the chief executive officer of that
authority or establishment;
(iii) in relation to a building or other construction work carried on by
of through a contractor or by the employment of building workers
supplied by a contractor, the contractor;
4. As per Section 3 of the Cess Act, read with rule 4(3) of the Cess Rules
and in accordance with S.O No.2899, Dated: 26.3.1996 of the Government
of India, 1% Cess has to be deducted from the Bills paid for works which are
covered by the definition of Building and Other Construction work and
remitted by way of crossed Demand Draft in favour of Andhra Pradesh
.. 4 .

-- 4 -Building and Other Construction Workers Welfare Board payable at

Hyderabad.
5. As per rule 4(4) of the Cess Rules, where the approval of construction
work by a Local Authority is required, every application for such approval
shall be accompanied by a crossed demand draft in favour of the Board for
the amount of Cess on the estimated cost of construction for the total
project or for the period of one year, as the case may be.
6. Further, as per Rule-5 the Government Office/Public Sector Undertakings/
Local Bodies/ Cess Collector shall transfer the Cess collected under Rule-4
along with the challan prescribed under the accounting procedure under
G.O.Ms.No.42, LET & F (Lab.II) Department, Dated: 30.4.2007. While
remitting the amount, actual collection not exceeding 1% of the total
amount collected may be deducted.
7. As per Rule-5(3), the amount collected shall be remitted to the Board
within 30 days of collection.
8. As per Section 6(1) of the Cess Act, every employer within 30 days of
commencement of his work or payment of Cess, shall furnish to the
Assessing Officer, information in Form-1(copy appended).
9. As per Rule-7, the Assessing Officer on receipt of Form-I, shall make an
order of assessment within a period of not exceeding six months, if he is
satisfied about the correctness of the particulars.
10. The following provisions of the Cess Act and Rules deal with the
consequences of non compliance:
Section 8. Interest payable on delay in payment of Cess:- If any employer
fails to pay any amount of Cess payable under Section 3 within the time
specified in the order of assessment, such employer shall be liable to pay
interest on the amount to be paid at the rate of two per cent for every
month or part of a month comprised in the period from the date on which
such payment due till such amount is actually paid.
Section 9. Penalty for non-payment of Cess within the specified time
If any amount of Cess payable by any employer under Section 3 is not paid
within the date specified in the order of assessment made under Section 5, it
shall be deemed to be in arrears and the authority prescribed in this behalf
may, after making such inquiry as it deems fit, impose on such employer a
penalty not exceeding the amount of Cess;
Provided that, before imposing any such penalty, such employer shall be
given a reasonable opportunity of being heard and if after such hearing the
said authority is satisfied that the default was for any good and sufficient
reason, no penalty shall be imposed under this section.
Section 10: Recovery of amount due under the Act: any amount due under
this Act (including any interest or penalty) from an employer may be
recovered in the same manner as an arrear of land revenue.
.. 5 .

-- 5 -Section 12 Penalty: (1) Whoever, being under an obligation to furnish a

return under this Act, furnishes any return knowingly, or having reason to
believe, the same to be false shall be punishable with imprisonment which
may extend to six months, or with fine which may extend to one thousand
rupees, or with both.
(2) Whoever, being liable to pay Cess under this Act, willfully or
intentionally evades or attempts to evade the payment of such Cess shall be
punishable with imprisonment which may extend to six months, or with fine,
or with both.
(3) No court shall take cognizance of an offence punishable under this
Section save on a compliant made by or under this authority of the Central
Government.
Rule 12 of the Cess Rules: Penalty for non-payment:-(1) An Assessing
Officer, if it appears to him that an employer has not paid the Cess within
the date as specified in the assessment order or has paid less Cess within
the date as specified in the assessment order or has paid less Cess,
including the Cess deducted at source or paid in advance, shall issue a notice
to such employer that it shall be deemed to be in arrears and such Assessing
Officer may, after such inquiry as it deems fits, impose on such employer, a
penalty not exceeding such amount of Cess;
Providing that before imposing any such penalty, such employer shall be
given a reasonable opportunity of being heard and if after such hearing the
Assessing Officer is satisfied that the default was for any good and sufficient
reason, no penalty shall be imposed on such employer.
.. 6 .

-- 6 -Appendix to annexure-I
FORM I
(See Rule 7)
Registration No:Under Building and Other
Construction Workers
(Regulation of Employment and
Conditions of Service) Act, 1996.
Registered Authority
1

Name of the Establishment

Address

Name of Work

No.of Workers employed

Date of Commencement of Work

Date
Months Year

Estimated Cost of Construction

Stages
Cost

Estimated Period of Work

Month
Year
Details of payment of Cess
Amount Challan Advance A
No. and Date
Deduction a
Source D
Final F

1st Year
2nd Year
3rd Year
4th Year
Total

Signature of Employer
Name of Employer
Date
TO BE FILLED BY ASSESSING OFFICER
7. Date of Completion

8. Final Cost

9. Date of Assessment

10. Amount assessed

11. Date of Appeal, if any

12. Date of order in Appeal

13. Amount as per Order in Appeal

Board

14. Date of transfer of Cess to the

15. Amount transferred Challan No and Date

Signature
Designation
.. 7 .

-- 7 -Annexure II
GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
ACTS-Building and other construction workers (Regulation of employment and
conditions of service) Act,1996 (Act 27 of 1996), The Building and other
Construction Workers Welfare Cess Act, 1996 and The Building and other
Construction Workers Welfare Cess Rules, 1996

Accounting Procedure -

Notification- Issued.
------------------------------------------------------------------------------------------LABOUR, EMPLOYMENT, TRAINING & FACTORIES (LAB.II) DEPARTMENT.
Dated.30th April 2007

G.O.Ms.No.42

Read the followingFrom the Commissioner of Labour, A.P., Hyderabad Lr.No. Rc. No.O1/4405/98 -III Dt. 10.01.2006
O R D E R:
The following notification will be published in the next issue of the
Andhra Pradesh Gazette:NOTIFICATION
In pursuance of rule 5 (1) of the Building and other construction workers Cess Rules, 1996, the
Government of Andhra Pradesh hereby prescribe the following Accounting Procedure for the Collection
of Cess.
1.

The Andhra Bank has agreed for collection of the Welfare Fund contributions
and remit to the
Andhra Pradesh Building and other Constructions Workers
Welfare Fund account in
their Commissioner of Labour-Extension Counter, Hyderabad (Under Ashoknagar Branch
Code No. 9039)
They have identified 119 Branches all over the State in all
Municipalities and Municipal Corporations (as per ANNEXURE-I
appended to this order)for the purpose of Collection of Welfare Fund Contributions/Cess.

2.

The Employer or the Worker or the Cess Collector or the Local Authority or the Government Office
or the Principal Employer or others, who are responsible to remit the Welfare Fund
contributions/Cess (Remitter) can directly remit the Welfare Fund contribution/Cess into the
Andhra Pradesh Building and Constructions Workers Welfare Fund account in any of the above
119 Branches of Andhra Bank by way of Challan as per ANNEXURE-II.

3.
Challan Comprises Four Copies, out of which Banker will retain two copies and return the
remaining two to the Remitter who paid the Welfare Fund Contributions/Cess.
4.
The Remitter shall forward one copy to the Secretary of the Andhra Pradesh Building and
Constructions Workers Welfare Board at the end of every month details of all the Employees covered by
such remittance duly enclosing a Statement with details of establishment, Number of workers and the
amount collected. The total of such Statement should tally with the total of challans remitted by the
Remitter..
5.
The remaining copy along with copy of Statements shall be retained with
which shall be produced for verification, as and when required.

the

Remitter

6.
The Registered Trade Unions of Building and Construction Workers may also directly remit
contributions into the Andhra Bank Branches by way of Challan in the same manner and send Boards
copy along with Statement of Workers to the Welfare Board. The Asst. Labour Officers are requested to
give vide publicity to this aspect by press notes, meetings with Employers Associations, Chambers of
Commerce and major Factories etc.
.. 8 .

-- 8 -7.
The Collecting Branch of Andhra Bank will transmit the collection amount at weekly intervals to
their Hyderabad Branch along with one copy of each Challan. This will facilitate reconciliation of
Welfare Fund / Cess Collections at the Board level with the Bankers.
8.
It is contemplated to Computerize Welfare Board Records and in that processes each
Establishment and the Worker will be given a Code No. and the process will be communicated at the
appropriate time.
The Commissioner of Labour is requested to implement the above Accounting Procedure with
immediate effect.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
ASHA MURTHY
SPECIAL CHIEF SECRETARY TO GOVERNMENT
To
The Commissioner, Printing, Stationary and Store purchase, Andrha Pradesh, Hyderabad. (with a request
to publish the notification in the A.P.Gazette and furnish 10 copies to Government and 50 copies to
Commissioner of Labour, A.P., Hyderabad)
The Commissioner of Labour, Andhra Pradesh, Hyderabad.
.. 9 .

-- 9 -ANNEXURE -1 (G.O.Ms.No.42, dt.30.04.2007)

List of Andhra Bank Branches where Welfare Fund will be collect by way of Challans.

1
2
3
4
5
6
7
8
9
10
11
12
13

SRIKAKULAM ZONE
Srikakulam
Amudalavalasa
Ichapuram
Bobbili
Kasibugga
Vizayanagaram
Parvathipuram
Salooru
Akkayapalem (Vizag)
Maharanipeta (Vizag)
Anakapalle
Bhitnunipatnam
Gajuvaka (Vizag)

1
2
3
4
5
6
7
8

ELURU ZONE
Ashoknagar (Eluru)
Bhimavaram
Palakollu
Tadepalligudem
Narasapur
Nidadavolu
Tanuku
Kovvuru

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

GUNTUR ZONE
Guntur(Main Branch)
Koretipadu (Guntur)
Tenali
Narasaraopeta
Bapatla
Repalle
Cjo;ala;iro[eta
Ponnuru
Macherla
Mangalagiri
Sattenapalli
Court street(Ongole)
Chirala
Markapur
Kandukur

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

KURNOOL ZONE
New Town (Ananthapur)
Hindupur
Guntakal
Tadiparti
Dharmavaram
Kadiri
Rayadurg
NR Pet(Kurnool)
Nandyal
Adoni
Yemmiganur
Wanaparthy
Mahaboobnagar
Gadwall
Narayanpet

1
2
3
4
5
6
7
8
9

KAKINADA ZONE
Kakinada (Main Branch)
Amalapuram
Tuni
Samarlakota
Ramachandrapuram
Pitapuram
Mandapeta
Peddapuram
Danavaipeta (Rajahmundry)

1
2
3
4
5
6
7

VIJAYAWADA ZONE
Satyanarayanapuram (Vija)
Patamata (Vija)
Machilipatnam (Main Branch)
Gudivada
Jaggaipeta
Nuzivid
Pedana

1
2
3
4
5
6
7
8
9
10

TIRUPATHI ZONE
Mullapet (Nellore)
Gudur
Kavali
Chittoor
Tirupathi (Main Branch)
Madanapalli
Srikalahasti
Punganoor
Cuddapah
Proddutoor

1
2
3
4
5
6
7
8
9
10
11

WARANGAL ZONE
Warangal (Main Branch)
Hanumakonda
Janagam
B.S.C.K (Khammam)
Kothagudem
Palavancha
Ellendu
Nalgonda
Suryapeta
Miryalaguda
Bhongiri

.. 10 .

-- 10 - 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

KARIMNAGAR ZONE
Karimnagar (Main Branch)
Jagityal
Godavarighani
Sirisilla
Koratla
Adilabad
Bellampalli
Manchiryal
Nirmal
Sirpur Kagaznagar
Bhansa
Bodhan
Nizamabad
Ramakrishnapuram
Kamareddy

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

HYDERABAD ZONE
Sultaan Bazar
R.P.Road Secunderabad
Ashoknagar
Balanagar
BDL Branch
Nacharam
HMT Branch
Malkajgiri
Tandur
Vikarabad
Madhapur
Kapra Sainikpuri
Kothapet
Sangareddy
Siddipet
zaheerabad
.. 11 .

-- 11 -ANNEXURE - 4
ANNUAL STATEMENT TO BE SUBMITTED BY THE
GOVERNMENT DEPARTMENTS/
LOCAL BODIES/PUBLIC SECTOR UNDER TAKINGS
FOR THE YEAR 200 - 0
Name of the Department:
Name and Designation of the DDO:
Registration No.
Under Building & Other Construction Workers Act
Reference No. of the Office of the DDO:
Sl.No.

No. of Works
awarded
during the
year in which
works
commenced

No. of works
in respect of
which Bills
paid to the
contractors
during the
year
3

Total
amount of
Bills
released

Amount of
Cess
deducted

Amount of
Cess
remitted