Labour Cess

[Saurabh Patel]

Please let me know the labour cess deducted on 1% Basic Amount or 1% of Gross (Inclusive GST Amount)

Ex My Invoice Basic Balue is 100000+ GST is Rs:- 18000, Gross Value is 118000.

Labour Cess deducted from my invoice is 1000 or 1180.

[KASTURI SETHI]

In my view, labour cess (1 %) is leviable on the cost of construction. It is available on google.

[DR.MARIAPPAN GOVINDARAJAN]

For what purpose Labour Cess is recovered?

AI Summary

Labour cess applicability: whether the levy attaches to contract cost or to gross invoice inclusive of GST.
Whether Labour Cess at one percent is calculated on the contract basic amount or on the gross invoice inclusive of GST is queried; forum replies state a view that the cess is leviable on the cost of construction and another asks why labour cess is recovered.