Cess on residential building constructed

ronaldsureshjones (Querist) 13 August 2016 This query is : Resolved
Sir,

A show cause notice has been served to my wife, who is the owner of the residential house, under The Building And Construction Workers' Welfare Cess Act, 1996 by the Labour Officer, Ernakulam.

The residential house situated in Ernakulam District, Kerala, was constructed in a span of one year and we occupied the house in the year 2010. The cost of construction would come below Rs. 10.00 lakhs.

I would like to know whether exemption is there in this case.

Kindly intimate me urgently as the case has been listed on 19th August, 2016.

Thanking everybody in advance.

Sincerely
Ronald S. Jones

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Ms.Usha Kapoor (Expert) 14 August 2016
Dear Client,

Please elaborate. Om what grounds showcause notice was issued. was the residence constructed in commercial area or violated any rules of Municipal Laws. Elaborate and we'd be giving you a correct Legal /Advise. Yours in the only residence in that area? Have you flouted any law or zonal regulations etc?

Ms.Usha Kapoor (Expert) 14 August 2016
At the time of construction if there is a Cess on the residential building payable you need to comply with payment of Cess. If it is too high you can contest either in tax forum. or consumer forum.

Rajendra K Goyal (Expert) 14 August 2016
Full case file / related documents need to be referred, discuss with local lawyer.

Ms.Usha Kapoor (Expert) 14 August 2016
According to the rules I refereed for workers welfare legislation and related fund cess of 1% is levied on construction cost. You say your Building/residence cost you about 10 lacs. So you must pay Rs.10,000/- towards Cess or workers welfare. Is it not the duty of the haves not to rush to the benefits of have nots?. Ours is a Socialistic democracy. Hence we must comply with such welfare legislation as India is a Welfare State. I don't think Rs.10,000 is beyond your reach.