FKJGP locks construction firm’s office over ‘illegal’ tax deduction

NONGPOH: Taking strong action over the illegal deduction of taxes from all non-government registered local contractors by M/s NKC Pvt. Ltd. which is engaged in construction of the Jorabat-Umiam Expressway, the FKJGP on Saturday locked the company’s office at 17 Mile, Byrnihat in Ri-Bhoi District for some time before backing out.
Notably, M/s NKC Pvt. Ltd., which was sub-contracted the four-lane work by M/s ILFS Pvt. Ltd, had engaged non-government registered local contractors for the completion of the construction work at different sites.
The FKJGP claimed that M/s NKC Pvt. Ltd. had illegally deducted two taxes – Labour Cess at 1 per cent and Provident Fund at 2 per cent – from the local contractors apart from the retention money and the TDS which was legally deducted from the contractors under refundable circumstances. The Federation also pointed out that another company, M/s YFC Pvt. Ltd., which was also implementing the project from Umdihar to Umiam did not deduct any such tax from the contractors.
Following the complaints lodged by the local contractor, the FKJGP visited the NKC office at 17 Mile, Byrnihat, for clarification but officials from the company did not meet them forcing the FKJGP to put the office under lock and key for few minutes until the Officer in-Charge of Byrnihat Police Outpost, D. Nongrum, arrived at the spot and pacified the FKJGP members.
Later e meeting was called which was attended by FKJGP North Khasi Hills District Unit general secretary B. Dhar, Umsning Circle president B. Syiem, members of the Byrnihat Circle and NKC HR & Administration Manager R.D. Pandey and Billing Engineer Indrajeet.
Speaking to the media after the meeting, Syiem alleged the company had failed to pay Labour Cess to the State Government since 2012-13 and it was only after a surprise check by the FKJGP few months back that the company had paid the Cess to the Meghalaya Building & Other Construction Workers Welfare Board on May 4.
Syiem also informed that the company had agreed to refund the Labour Cess to the local contractors while the Provident Fund would be reimbursed later along with their final bills.
He also warned that they would file an FIR against the company if it failed to refund the taxes deducted from the local contractors.