Dear Seniors,

I just read the entire discussion that was had on this matter. I also came to know that this cess is applicable on the entire construction cost, excluding the cost of land and any compensation paid to workers. Now, my question is, is this cess applicable on Furniture & Fixtures expenses, Computers, Components & Electric Equipment expenses, Motor-vehicle expenses, plant & equipment expenses...? I received a notice from the concerned department, and they have included all these expenses as well.

I would request all of you to please shed some light on this issue.

From India, Delhi
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Dear Sonu,

I'm of the opinion that the construction cost of any building/structure can comprise only the cost of materials and labor for building the superstructure. The cost of fixtures, furniture, electronic gadgets, and the like are items to be added later by the occupier of the building according to his needs only. But, perceptions differ.

From India, Salem
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Thank you, sir, for your prompt response. One more thing, does the assessor have the authority to change the valuation once a notice is issued to the employer? I have received different opinions from various people. Some are saying that once the assessment is done, no one can change it, and the only option is to challenge it in court.
From India, Delhi
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The assessing officer cannot change his assessment as and when he likes. The aggrieved party can make an appeal u/s 11 of the Cess Act,1996.
From India, Salem
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