(Querist) 18 May 2010
This query is : Resolved
Dear friend Please guide me on this issue.
How to calculate cess under The Building & Other Construction Workers’ Welfare Cess Act, 1996. What are the component comming under cost of construction. Does fan, switchboard, wire etc are coming under cost of construction for cess calculation. Please guide me on this issue
(Expert) 13 November 2010
Your answer lies in rule 3 of the Building and Other Construction Workers Welfare Cess Act, 1998 where the cost of construction is stated as: "3. Levy of Cess—For the purpose of levy of cess under sub-section(l) of section 3 of the Act, cost of 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 of payable to a worker or his kin under the Workmen's Compensation Act '1923.
Therefore, I feel that whichever becomes immovable part of the construction, should be included like doors, windows, grills,wiring seaverage, water and conduit pipes bulb holders electric swiches taps toilet seats washbasin, bath tub, paints etc. should form cost of construction. The tubes bulbs, airconditioners inverters movable almirahs etc. can be excluded.