21 April 2009
can u pls provide the due date of deposit of Karnataka labour cess and is applicable to whom? If a building is being construced, labour cess is charged to the civil contractors only or to the interior decorators, security agency, etc involved in construction of commercial bldg.
02 August 2024
### **Karnataka Labour Cess: Key Information**
#### **1. Applicability of Karnataka Labour Cess:**
- **Applicability:** - The Karnataka Labour Cess Act, 1974, mandates the payment of a labour cess on the construction of buildings. The cess is primarily applicable to the **employer** or the **principal contractor** in charge of the construction work.
- **Scope:** - The cess is applicable to both **civil contractors** and **any other contractors** involved in the construction, including interior decorators and other service providers if they are engaged in construction activities.
#### **2. Due Date for Deposit of Labour Cess:**
- **Due Date:** - The labour cess is typically required to be deposited on a monthly basis. The due date for depositing the cess is **15 days from the end of each month**.
#### **3. Calculation and Payment:**
- **Rate of Cess:** - The rate of the labour cess is usually specified in the Karnataka Labour Cess Act and can be updated periodically. As of the last update, the rate is generally 1% of the cost of construction.
- **Payment Process:** - The cess must be deposited to the Karnataka Labour Welfare Board. Ensure to follow the specific procedures outlined by the Board for accurate payment.
#### **4. Responsibilities:**
- **Principal Contractor/Employer:** - The principal contractor or employer is responsible for depositing the cess. This means if a building is under construction, the principal contractor is responsible for ensuring that the cess is paid.
- **Subcontractors:** - Subcontractors such as interior decorators, security agencies, and other service providers involved in the construction process do not typically handle the payment of labour cess directly. Instead, the primary responsibility lies with the principal contractor who engages these subcontractors.
### **Summary:**
- **Due Date for Deposit:** 15 days from the end of each month. - **Applicability:** Labour cess is applicable to the principal contractor or employer in charge of the construction project. - **Contractor Responsibility:** The principal contractor is responsible for the payment of labour cess, covering all construction activities including those handled by subcontractors.
**For the most accurate and current information**, you should refer to the Karnataka Labour Welfare Board’s official website or consult with a local tax advisor or compliance expert.
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