Please review the intent of the B&OCW Act. This is a one time cess levied on the employers constructing the building. Hence the building may be for the purpose of factory. As yet the workers engaged for the construction will be construction worker's for whose welfare the fund being augment is intended. Hence in my view, the cess is applicable.
An Act is provide for the levy and collection of a cess on the cost of construction incurred by employers with a view to augmenting the resources of the Building & Other Construction Workers’ Welfare Boards constituted under the Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act,1996. It extends to the whole of India and come in to force on the 3rd day of November, 1995.
Under the Act 1% cess shall be collected from every employer where the cost of construction is more than Rs. 10 lakhs. The proceeds of the cess so collected shall be paid by the local authority or the State Government collecting the cess to the Board after deducting the cost of collection of such cess not exceeding 1% 0f the amount collected.