Applicability of Labour Cess in Tamilnadu?

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CMA.T.NANDAKUMAR

CMA.T.NANDAKUMAR (Querist)
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09 October 2016 My query is- 1.Whether Labour Cess is applicable to Tamilnadu? 2.If so, whether the estimated project cost of civil construction should include the labour cess applicable on the work. 3.Can the employer deduct labour cess @ 1% from monthly bills of the contractor? 4.Is there any provision in the Act for getting exemption, if Labour Cess is applicable in Tamilnadu? Dear tax experts, Kindly Clarify these queries. Thank you, in advance. CMA.T Nandakumar. 9.10.2016.

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Guest (Expert)

12 October 2016 Labour cess in a Central Act and it is applicable. Office of Labour cess is there in Chennai - Nungambakkam. It is applicable to civil construction. Estd contract cost for AS 7 (if that is what you are looking for) shall include 1% tax deducted by employer. Further, Employer is liable to deduct 1% under this Act. Further there is a provision for asking for exemption under the CESS Act - which you may refer. The provisions are simple.