What is a labour bill?

The bill a labour contractor raises for labour-only work: the owner or main contractor buys the material, and the labour contractor is paid for the work done, measured by quantity at agreed labour rates — per cft of brickwork, per sqft of plaster or slab, per kg of steel tied. It has no material cost in it.

How is a labour bill different from a wage sheet?

A wage sheet pays named workers by the days they attended. A labour bill pays the labour contractor by the work measured, and the contractor pays their own workers. For wages by attendance, use the labour wage calculator.

How do you calculate a labour bill?

Quantity done so far × labour rate, less the same for previous bills, gives this bill's gross amount. Add GST only if the labour contractor is registered and charges it, subtract retention, TDS and any advance recovered, and the rest is payable.

Is TDS deducted from a labour contractor's bill?

When the payer is a business or other deductor, yes — income-tax TDS on contract payments applies to labour contracts too, commonly 1% for an individual or HUF and 2% otherwise. A homeowner usually does not deduct it. Confirm current law.

How do I recover an advance given to the labour contractor?

Enter it under other recoveries as a fixed amount on the bill it is recovered from, or as a percentage of each bill under advance recovery, as you agreed.

Can I download the labour bill as Excel?

Yes. "Download as Excel" gives you the free labour bill workbook with your items, quantities, labour rates and previous bills filled in, calculating the same net amount.

Labour Bill Calculator — Labour-Only Contract Bill

Step 1 of 4

Name of work

Owner / main contractor

Labour contractor

Bill no.

Bill period from

Bill period to

Work order / agreement no.

Which bill is this?

Running bill Final bill

A final bill closes the work. You can release retention with it.

Retention released with this bill (₹)

Usually blank. Enter an amount only when your contract says retention is due back now — often after the defect liability period.

GST added to this bill

No GST12%18% Other

Choose No GST if the contractor is not registered for GST. Deductions are worked out before GST.

Step 2 of 4

Type how much of each item is done so far. The bill works out this bill's share from what was done before.

Unit	This bill	Amount ₹

	1300	36,400.00


	650	14,300.00


	1200	54,000.00


	4900	34,300.00


	2800	44,800.00


	260	15,600.00



No quantity done so far — not billed.

Up to 30 items, the size of the Excel workbook. An item with no rate is shown as not priced, never as ₹0.

Escalation / extra work (₹)

Only if payable on this bill.

Step 3 of 4

Each percentage is worked out on this bill's work, before GST. Use the figures in your contract or work order.

Retention / security deposit − ₹9,970.00

Held back from each bill and returned later, as your contract says.

Income-tax TDS − ₹1,994.00

None1%2% Other

Deducted when the payer is a business or other deductor (commonly 1% for an individual or HUF contractor, 2% otherwise). A homeowner usually does not deduct it. Confirm current law.

Advance recovery

None Other

Only if an advance was paid. 0 if not.

More deductions (government and large works)

GST TDS

None2% Other

Only where the payer is a notified deductor, such as a government body. 0 if not.

Labour welfare cess

None1% Other

Building and other construction workers cess, where it is deducted from the bill.

Secured advance recovery

None Other

Only if an advance against materials on site was paid.

Water charges

None1% Other

If the client supplies water and recovers for it.

Electricity charges

None1% Other

If the client supplies power and recovers for it.

Other recoveries (fixed amounts)

What for	Amount ₹

Step 4 of 4

What each earlier bill billed, held back and paid. Used for the totals to date and the retention held; it does not change this bill. For bill No. 1, leave it empty.

Bill no.	Date	Gross, excl. GST (₹)	GST (₹)	Retention held (₹)	Net paid (₹)