Confused About BOCW Cess Calculation: Is It on Labour or Total Contract Value?

Dear All, Please let me know the detailed calculation of BOCW Cess. I have a little confusion as follows:

Total Cost / Value Breakdown

- Labour Component: Rs. 20
- Details Engg / Design: Rs. 20
- Supply Project Materials: Rs. 40
- Supply Construction Materials: Rs. 15
- Profit: Rs. 5

Now, will the cess be calculated on which amount? Is it only on the Labour Component or the total contract value including profit? As I know, service tax is not under the cess as per BOCW ACT 1996.

Looking forward to your help.

Thanks,
Subroto

The cess will be on the cost of construction, and the cost of construction shall include all expenditures except the cost of land and any compensation paid to or payable to a worker or his kin under the Workmen's Compensation Act, 1923.

But till I am in jail, 'cost of construction and cost of construction shall include all expenditure' - does that mean all supply and other costs will be treated as the cost of construction? Is there any notification?

Consideration of Work Orders as Construction Costs

Say there are three separate work orders: one for the supply of Project Materials to be directly installed, another for commissioning, and the third for construction. Can we consider the above three work orders as the cost of construction, or should we only consider the construction part?

Kindly enlighten.

Thanks,

Subroto