Our company is a state power transmission company. Apart from our own line construction work, we undertake line construction work (on turnkey basis) of our clients also.
We outsource the line construction work undertaken from our client to our contractors. So the proposition comes as under :
Customers---------->our company ----------------> contractor
for the construction of work, we charge estimated amount from our customer and alongwith construction cost, we also recover 1% BOCW cess. The recovered BOCW cess is remitted to BOCW Board.
We then outsource the "construction portion" of total work to contractor and for "material portion", we procure materials. As the work progresses, the contractor submits the bills. From the bill of contractor, we deduct 1% BOCW cess and remit the same to BOCW Board.
Our Queries are as under :-
(i) Is the above process of recovering cess from customer and deducting cess from contractor's bill correct ?
(ii) Who is employer in the case liable to collect cess
We outsource the line construction work undertaken from our client to our contractors. So the proposition comes as under :
Customers---------->our company ----------------> contractor
for the construction of work, we charge estimated amount from our customer and alongwith construction cost, we also recover 1% BOCW cess. The recovered BOCW cess is remitted to BOCW Board.
We then outsource the "construction portion" of total work to contractor and for "material portion", we procure materials. As the work progresses, the contractor submits the bills. From the bill of contractor, we deduct 1% BOCW cess and remit the same to BOCW Board.
Our Queries are as under :-
(i) Is the above process of recovering cess from customer and deducting cess from contractor's bill correct ?
(ii) Who is employer in the case liable to collect cess