Physical attack damage and Physical mastery

Does the physical attack damage only affect my basic attacks or does it work on skills ? Phyical mastery has a point thet gives you 40% increased physical damage with skills that cost life , so if I do the node that deletes my mana and I use life instead of it , does all my skills count as costing life ?

If you're talking about blood magic, yes. The skills will cost life and this modifier will apply to their physical damage if they have any. There are other ways to get all or part of your skills to cost life as well, such as the skill tree and lifetap support. Some skills inherently cost life, like exsanguinate, corrupting fever and reap.