Failure to follow FD order by depts creates problems for firms
Source: Hueiyen News Service

Imphal, October 21 2015: Some departments have failed to follow the order of the Manipur Finance Department (FD).

As a result, many private firms have been reeling under serious problems.

It has been noticed that various local authorities and bodies liable to deduct VAT at source are not complying with the order of the Finance Department causing a serious problem to private firms.

As per an office memorandum issued by the Finance Department, attention has been invited to the Government notifications regarding obligation imposed on Government Departments of the Central and State Governments/local authority or body/corporation or any other company established by or under the Central or State Act/Board constituted by or under the Central or State Act for deduction of Value Added Tax (VAT) at source from bills/payments.

In order to ensure proper deduction of VAT at source by above mentioned organizations, it is decided that all such bodies should invariably indicate in the respective sanction orders, the amount of VAT to be deducted at source as prescribed in the schedule of the Manipur Value Added tax (MVAT) Act, 2014 & Rules, 2015 .

The tax so deducted should be deposited within seven days from the expiry of the month to the designated bank authorized by the Government by Challan through the Government Treasury concerned under head of Accounts 0040-Sales Tax, Sub-head 102-State Sales for Sales Tax/VAT.

The office memorandum said in case of failure without reasonable cause, to deduct the tax or to deposit the tax after deduction within the stipulated period of seven days, the DDO of the concerned Department shall be personally liable to pay by way of penalty not exceeding double the amount of tax deductible but not so deducted and if deducted, not so deposited into the Government account.

Every contractor/supplier who executes/supplies should get himself/herself registered with the Department of Taxes, Manipur.

No supply/works order shall be awarded to contractor/supplier without submission of Tax Clearance Certificate from Department of Taxes.

Authorities doing tendering, procurement process must ensure that participating firms are registered with the Taxation Department and have a valid Tax Clearance Certificate issued by the Department, the office memorandum issued by Additional Chief Secretary (Finance) RR Rashmi said.

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