(Expert) 06 October 2010
1. Welfare fund is contributed by the construction co. for its own staff/labour, thier childern's medical, health and education etc. While LAbour cess is deducted from the Running Bill of Contractor just like TDS and deposited in Labour cess A/c( Maintained by Govt.) Rate of LAbour Cess is 1%.
2. There is no fix ratio between Contract Value and Labour expense as in construction a uncertinity always faund. But in Delhi VAT 25% of Work Done Value allowed as LAbour Component if wark is Civil, but if work is electrical then 15% of Work Done Value allowed as labour component. Duiring the scrutiny cases in 2003-04, 2004-05, 2005-06, 2006-07 Income tax department allowed 33% of Work done value as labour compnent to us.(But it is not any rule or guideline)
3. Yes if strenght of worker is more then 20 then from fist day ESI & PF are to be levid.
4.Please clear your this para what you want to say.