MTDC fails to deposit sales tax, GST
Source: Chronicle News Service
Imphal, March 02 2024:
Manipur Tribal Development Corporation (MTDC) had not deposited Sales Tax of Rs 17.42 crore and GST amount of Rs 1.04 crore into the government account, according to the Audit Report 2022 published by the Comptroller and Auditor General (CAG) of India, tabled on the floor of the ongoing state assembly session.
As per a state government notification (September 2009), the amount of Sales Tax deducted at source should be deposited by the Drawing and Disbursing Officer (DDO) within seven days from expiry of the month.
In case the DDO fails to deposit the tax within the prescribed period, he shall be liable to pay penalty not exceeding double the amount of tax not so deposited.
Further, as per Section 51(2) of the Manipur Goods and Services Tax Act, 2017, the amount deducted as Tax Deducted at Source (TDS) shall be paid to the govern ment account by the deductor within ten days after the end of the month in which such deduction is made.
Manipur Tribal Development Corporation (MTDC) is a state government company incorporated in June 1979 (under Tribal Affairs and Hills Department), and engaged in construction of infrastructure facilities, particularly in hill districts of the state.
While making payments to the contractors for various works during 2018-19 and 2019-20, elements of Sales Tax at the rate of 5.6 per cent of the value of work done was deducted at source by MTDC from each Running Account bill.
The amount deducted was retained in the bank account of MTDC for deposit into the government account.
However, Audit noticed that during the period 2018-20, as against the total outstanding Sales Tax amount of Rs 18.41 crore lying in its bank account, MTDC had deposited only Rs 99.33 lakh.
Thus, there was an outstanding balance of Sales Tax amounting to Rs 17.42 crore (March 2020) yet to be deposited into the government account even after lapse of 11 to 32 months.
Similarly, elements of Goods and Service Tax (GST) at the rate of 2 per cent amounting to Rs 1.76 core was deducted at source under the Manipur GST Act, 2017 from each Running Accounts (RA) bill by MTDC during 2018-19 to 2020- 21 .
The amount deducted was also retained in the bank account of the Corporation without depositing into appropriate government account.
As on March 2020, against the total tax of Rs 1.13 crore deducted at source (TDS), MTDC deposited Rs 2.59 lakh only.
As on the date of audit (January 2021), as against the accumulated TDS amount of Rs 1.76 crore, MTDC had deposited Rs 72.78 lakh, leaving an outstanding balance of Rs 1.04 crore.
Thus, MTDC failed to clear the statutory dues to the government for which it is liable to pay penal interest prescribed under provision of the Act for delay in deposition of the TDS.
The matter was pointed out to MTDC in September 2022.However, MTDC did not furnish the reason for not depositing the balance amount of TDS into the government account.
Earlier, in February 2021, MTDC stated that the statutory dues would be deposited at the earliest.
However, action taken in this regard has not been intimated till March 2023 .
The CAG report recommended initiation of necessary action by the department to get the outstanding amount of the Sales Tax and TDS deposited into government account and also take appropriate action against the incumbent officer responsible for such lapses.
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