Contractors, Income tax at loggerhead

SHILLONG, JAN 16: The contractors and suppliers in Meghalaya are at loggerhead with the Income Tax department as the formers are made to pay for applying the exemption of tax certificate.

The contractors and suppliers under the banner of All Meghalaya Contractor & Supplier Association (AMCSA) has threatened to take the Income Tax department to court over the payment they are forced to made for applying of exemption certificate.

In a press statement issued on Friday AMCSA general secretary BL Nongbri said the association will approach to the court against the State Income Tax Department for directing the contractors belonging to Schedule Tribe to pay for applying the exemption certificate (EC).

“We have decided to seek the intervention of the court into the matter relating to the direction of the department to pay for the exemption certificate,” Nongbri said.

According to Nongbri, as per the Income Tax U/S 194 of the Income Tax Act 1961, Section 10 (26) has clearly stated – “contractors belonging to the Schedule Tribe are exempted from paying to the Income Tax.”

Despite the existence of the act, Nongbri informed that at present the contractors belonging to ST have pay every time when applying to get the exemption certificate for the purpose of getting their bills released.

Nongbri further informed that the grievance  of the contractors was taken up with the the Chief Commissioner, Ayakar Bhawan Guwahati, Joint Commissioner Income Tax ( TDS), Shillong, on many occasions.

However, Nonngri lamented,  the department had not taken any action to redressed their problem till now and because of the nonchalant attitude of the department the association has decided to knock the door of the court.

The association also appealed to all contractors in the state, particularly those belonging to ST, to support the association on this issue.- By Our Reporter