My client got a house constructed in Vasant Vihar. He is seeking a CA certiifcate to pay labour cess. In my view he should pay it on cost of construction plus other items i.e lift, solar etc. but not on GSt . Rate is @1%. He may add gst on solar etc. but not on cost of construction. Further he has to pay it directly as per contractor this has nothing to do with him as this is assessment now.
Client is not registered under GSt. Kindly advise.
Client Must Pay 1% BOCWW Cess on Construction Cost Plus Lifts and Solar, Excluding GST, for Worker Welfare A client constructed a house in Vasant Vihar and needs a CA certificate to pay labour cess. The discussion suggests paying the cess on the construction cost plus items like lifts and solar, excluding GST, at a rate of 1%. The client, not registered under GST, must pay directly as per the contractor's assessment. A reply clarifies that the so-called 'Labour Cess' is actually the Building & Other Construction Workers' Welfare Cess (BOCWW Cess), which is not a tax but a fee for worker welfare. The Supreme Court has affirmed this purpose, distinguishing it from general taxation. (AI Summary)
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