SHILLONG: The KHADC has incurred a huge revenue loss due to non-deduction of the Value Added Tax (VAT) during the fiscal year of 2007-2008 and 2008-2009.
The CAG report for the year ended on March 31 2008, which was tabled by the CEM Adelbert Nongrum on the first day of the Council’s Winter Session here on Tuesday, stated that after scrutiny of the records of the KHADC relating to the deduction of VAT revealed that the Council did not deduct VAT to Rs 8.06 lakh from the 155 different works (contracts) during the year 2007-2008.
Again, the CAG report for the year ended March 31 2009 which was also tabled in the House stated that after scrutiny of the records of the KHADC relating to the deduction of VAT revealed that the Council did not deduct VAT amounting to Rs 13.45 lakh from different works contracts during the year 2008-2009. “Besides, VAT of Rs 17.01 lakh from the contractor’s bills for Rs 181.40 lakh paid to the contractors for construction work of Byrnihat Market Complex (including additional items) was also not deducted,” the CAG report stated. The report further stated that the matter was reported to the Council in 2012 and the reply is still awaited.
