Revenue or cost ?

Govt of india has subcontracted a work of say 100cr to abc ltd (the principal contractor)

Now the principle contractor has subcontracted the work to a sub contractor on a back to back basis for 5% royalty which bring the contract price to 95 Cr

Now few deductions has made by govt of india for which they have not raised any invoices.

Deductions -

penelty 2 cr

Labour cess 1 cr

Some labour charges of 0.5 cr

Now, these deductions were passed on to the subcontractor.

Question is whether subcontractor will reduce the revene or treat it as a cost.