TMI BlogLabour CessX X X X Extracts X X X X X X X X Extracts X X X X ..... When raising invoice to client along with labour cess like (civil works + labour cess), on labour cess, whether we need to charge GST or not. Kindly clarify, if any notification please provide me. Regards Chandan - Reply By KASTURI SETHI - The Reply = No deduction is allowed on labour cess. GST has to be paid the value of civil works including cess). Also see replies posted against Issue Id N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.115480 dated 2.10.19 - Reply By PAWAN KUMAR - The Reply = The value of supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than CGST, IGST, UTGST act. As per the section 15 (2)(a) labour cess is also includible in value of supply. GST is payable on this component of labour cess. as per my view. - Reply By Ganeshan Kalyani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = Yes the labour cess should be considered to charge GST. - Reply By YAGAY andSUN - The Reply = In the case of Delhi Metro Rail Corporation vs Simplex Infrastructures Limited, Delhi High Court, 2011 = 2011 (8) TMI 1323 - DELHI HIGH COURT , where, the high court held that, the subject matter of the Cess Act is the activity of building and construction, the object is to augment th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Welfare Fund under the BOCW Act and the essential purpose is to benefit the building and construction worker. The ultimate or incidental results or consequences might be that contractors have to part with 1% of the bill amount towards the cess. However, that does not detract from either the primary object of the Cess Act or its essential purpose. Applying the Hingir Rampur tests, it has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be held that the Cess Act cannot be construed to be a tax at all. Further in GST various types of cess, taxes, duties which was levied and collected as Indirect Taxes, were subsumes but cess like Building cess, Professional tax and labour etc. were not out of the purview of subsumed into GST as these are not Indirect Tax. In our view, on it GST is not applicable. - Labour Cess - Query Start ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed By: - chandan jha Dated:- 4-10-2019 Other Topics - Got 4 Replies - Indian Laws - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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