One of our parties has deducted Labour Cess @ 1 per cent from our payment. This is new to us, we don't know about it,
we have some questions/queries about it.
1) What is Labour Cess @ 1% and why is the party deducted from our payment? 2) Our job was to provide environmental services to the party, not do any construction work. 3) Can we take input/claim for Labour Cess @ 1%?
09 November 2022
1 It's payable to the government for labour welfare fund. 2 The levy of Cess on the cost of construction incurred by the employers on the building. and other construction works is a means for ensuring sufficient funds for the Welfare Boards to undertake social security schemes and welfare measures for building and other construction workers. 3 Charge it as expenses to p and l.
CAclubindia
