Query on dedcution of labour cess in kerala

Rajesh Rao (Querist) 20 July 2018 This query is : Resolved
Dear sir,
We are executing civil/supply of crates/pallets/panel to Kerala Government, while releasing payment, they deducted 1% as labour cess ( KLWWF).
I need following advise :
1.whether it is deducible on total bill or only on civil bill.
2. kindly share relevant provision.

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P. Venu (Expert) 21 July 2018
How has the deduction been made - on the total bill or the civil bill?

Jacob Pratap (Expert) 22 July 2018
Dear Rajesh,
It seems that you are talking of Cess under the BOCW Welfare Cess Act, 1996. If that is so, as per rule 3 of the Cess Rules, 1% cess is to be deducted on the total cost of construction.