on what amountTDS on works contract (VAT TDS) to be deducted

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Rownak Jajodia (Querist)
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21 April 2011 Under Orissa Vat ACt, 2004, Section 54 instructs the contractee to deduct TDS before making payment to the contractor. Kindly note the contractor is providing works contarct service (material supply plus labor). As for example the invoice raised by him-

Work Done (Material+Labor supplied)1,00,000
Less: Standard deduction for labor
@ 30% 30,000
therefore,
Value of material 70,000
Add: Service Tax on labor say 10% 3,000
Net value 1,03,000
Add: Works contract tax on material
@ 5% say 3,500
Gross Value 1,06,500

My question is TDS u/s Sec 54 of Orissa VAT act 2004 to be deducted by the contractee on what figure. Is it 1 lac? or 70k or 30k, or 1,06,500 or 1,03,000? Kindly reply asap as it will help solving many people queries. Please also cite proper case laws. Please also discuss the difference between value of works contract and taxable turnover of works contract for the above sited query.