Construction industry

On cosntruction LAbor cess 1 % on cost of construction is applicable

Can someone tell me what items to be included in this take a small e.g construction of hotel A.C plant. Elevator, Interiors Specailly furniture fitted  are to be included  for calculation of Labor cess???

Replies (2)

Hi Aman,

The BOWC act says that a cess of 1% is to be charged on cost of construction.The cost construction shall include all expenditure incurred by an employer in connection with the building or other construction work but shall not 

 

Include—
 
—cost of land;
—any compensation paid or payable to a worker or his kin under the Workmen’s Compensation Act, 1923.
 
By giving a plain reading to the act, it becomes evident that anything related to construction comes under its purview and hence cess will be payable on the accumulated sum.
 
Thus, AC Plant, elevators etc will form part of cost of construction and consequently cess will be paid on it. However, In case of furniture it depends on its type. If furniture forms part of the building , then its cost will also be included and hence will be chargeable to cess.
 
Please let me know in case you need any clarification,
 
 
Regards,
 
Originally posted by : Yuvraj Sharma

Hi Aman,

The BOWC act says that a cess of 1% is to be charged on cost of construction.The cost construction shall include all expenditure incurred by an employer in connection with the building or other construction work but shall not 

 

Include—

 

—cost of land;

—any compensation paid or payable to a worker or his kin under the Workmen’s Compensation Act, 1923.

 

By giving a plain reading to the act, it becomes evident that anything related to construction comes under its purview and hence cess will be payable on the accumulated sum.

 

Thus, AC Plant, elevators etc will form part of cost of construction and consequently cess will be paid on it. However, In case of furniture it depends on its type. If furniture forms part of the building , then its cost will also be included and hence will be chargeable to cess.

 

Please let me know in case you need any clarification,

 

 

Regards,

 


Thnax Yuvraj

Can u clarify me in this

Do I have to account cess on folowing  also????

Interest part ,

salary part to administratives

Power and feul

travelling exp before the hotel comes in to operation and

Sewage transplant sytem,

temporary lights at site

 

 

Or is any doucment or l item list availble somewhere which are to be added while calculating cess???

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