ANYONE KINDLY CLARIFY WHETHER ON WHICH AMOUNT THE BOCW LABOUR WELFARE CESS (1%) IS TO BE DEDUCTED BY THE EMPLOYER. WHETHER IT IS ON BASIC AMOUNT WITHOUT GST OR WITH GST?
I RAISED THE QUESTION WITH THE EMPLOYER DEDUCTING CESS ON AMOUNT INCLUDING GST, THE EMPLOYER RECITED ME THE LAW OF "THE BUILDING AND OTHER CONSTRUCTION WORKERS’WELFARE CESS ACT, 1996 ACTNO. 28 OF1996" PARA-
"3. Levy and collection of cess.—(1) There shall be levied and collected a cessfor the purposes of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996(27 of 1996), at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification in the Official Gazette, from time to time specify."
here he clarifes that the cost incurred by the employer is basic plus gst so cess will be levied on total. BUT I am not convinced since no tax or fees can be levied on Tax (tax on tax). Thus CESS must be levied on basic excluding GST if GST is mentioned extra in Invoice.
Kindly guide further with clarification notifications or any documents stating the clarification?