LIVE Online Course on NDPS by Riva Pocha and Adv. Taraq Sayed. Starting from 24th May. Register Now!!
LAW Courses

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Cost of Construction

Querist : Anonymous (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
Jacob Pratap (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.

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Post a Suggestion for LCI Team
Post a Legal Query