Is CESS @ 1 % to be paid on the Service Tax / GST Amount apart from the Contract Value?

Is CESS at 1% to be paid on the Service Tax/GST amount apart from the Contract Value?

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Hi Srawat,

You need to pay cess on the total cost of the project, excluding the land value and compensation paid to employees.

Mr./Ms. Srawat,

Under Section 3 of the Welfare Cess Act, these construction companies are liable to the levy of a Cess at a rate not exceeding two percent, but not less than one percent, of the cost of construction incurred. It is clear that the Cess can only be levied for the purposes of the BOCW Act. It has to be calculated from the invoice (exclusive of taxes).