The Haryana labour department has hiked the cess that is collected on construction of residential, commercial, industrial and institutional etc. buildings across the state. The revised cess that is charged from the person (employer of workers) who constructs the said building and individual in case of individual category and is payable to the labour department, is all set to impact construction cost across the state. In various categories, the cess now imposed is more than double the previous rates per square feet.
The money collected from the cess, according to officials, is used to provide various benefits to building and construction workers registered with the labour department in Haryana.
Under the residential category, the rates per square feet of covered area for estimation purpose shall be Rs 1,447 for house constructed by an individual, Rs 1,916 in case of group housing societies built by developers/builders constructing residential multi-storied flats or by cooperative societies.
Then additional chief secretary (labour department) Dr Mahavir Singh issued these instructions to the additional labour commissioner (NCR), all assessing officers and all cess collectors across Haryana. He was recently replaced by another IAS officer, V S Kundu.
Under the commercial category, the rates per square feet of covered area for estimation purpose has been fixed at Rs 2,586 for multi-storied office complex, IT enabled service industry, showrooms buildings having superfine type of construction; Rs 2,490 for multi-storied office complex, IT enabled service industry, showrooms buildings having medium type of construction and Rs 2,490 for shopping malls having multi-storied building with basement, multiplex inside. The rates for buildings constructed for the purpose of social use like auditorium having ‘A’ type construction has been fixed at Rs 2,758 and for medium type fine construction, Rs 2,490.
The rates for banquet halls with superfine construction is Rs 2,299 and for medium-type construction is Rs 2,011 per square feet of covered area.
Similarly, for buildings constructed for the use of purpose of educational, institutional, training centre having superfine construction and medium type construction, the rate is Rs 1,916; for multipurpose hall/community centre, the rate per square feet is fixed at Rs 2,107 (for superfine construction), Rs 1,916 for medium-type construction and Rs 1,668 for building constructed for the purpose of dharamshala.
Under the industrial category, the rate per square feet shall be Rs 1,813 (for building with RCC roofing); Rs 1,741 for building with ACC/GI sheets roofing, Rs 1,916 (for office block having superfine and medium-type construction).
Under the hotels/clubs category, the rate per square feet has been fixed at Rs 2,988 (for hotels and club with five star and above facilities); Rs 2,490 (for construction of hotel and club with three star and four star facilities) and Rs 2,107 (for construction of hotel and club below three star facilities). Rate for construction of dhaba with high class facilities has been fixed at Rs 2,107, Rs 1,519 (for construction of dhaba with medium class facilities) and Rs 1,447 (for construction of dhaba low class facilities).
Under hospitals category, the rate has been fixed at Rs 2,750 (for building with superfine construction), Rs 2,455 (building with medium construction) and Rs 2,258 (for building constructed for the purpose of nursing homes/ dispensaries with simple construction).
Similarly, the rate has been fixed at Rs 1,447 per square feet for building constructed for the use of religious purposes.
The order further reads:
1.If, the date of commencement of construction (whether work is completed or under construction) is prior to the issue of this order and any amount towards advance cess is already deposited, then the construction cost of the area in proportion to the amount of advance cess already deposited, will be calculated/assessed on the basis of previous minimum suggestive rates of construction circulated vide letter dated December 5, 2007 (Annexure-A), subject to all other provisions of the Building and Other Construction Welfare Cess Act, 1996 and rules framed under.
2. If, an employer has obtained the occupation certificate or completion certificate from the concerned authority or having any other document which proves that the date of completion of such building is prior to the date of issue of this order, the assessing officer shall apply the previous minimum suggestive rates of construction circulated vide letter dated December 5, 2007 (Annexure-A) subject to all other provisions of the Building and Other construction Workers Welfare Cess Act, 1996 and rules framed under.
“These revised rates/norms would be taken as the minimum cost of construction for the cost estimation. However, if at any stage, it is found that the actual cost of construction is more than the minimum rates, then cess would be payable on the actual cost incurred and would be assessed by assessing authorities accordingly. Further, in case of any dispute regarding the type of building or the rates not been covered in the given list of buildings and other construction works, the assessing officer will forward the case to the headquarters alongwtih the assessment and recommendation in the matter,” it adds.
For determining class ‘A’ (superfine), ‘B’ (medium-type) and ‘C’ (simple) constructions, officers concerned have been instructed that “due considerations shall be given to the parameters of use of sanitary fitting materials, flooring materials, quality and type of wood, provision of escalators, basement, storeys of the building, air conditioning system, stone used etc”.