Home » Education Engineering Wing of Education (S) Department failed to deposit VAT amounting to Rs 2.34 crore in the government account

Education Engineering Wing of Education (S) Department failed to deposit VAT amounting to Rs 2.34 crore in the government account

by Rinku Khumukcham
0 comment 2 minutes read
Education Engineering Wing of Education (S) Department failed to deposit VAT amounting to Rs 2.34 crore in the government account

IT News
Imphal, April 5:

In a huge violation of government order and financial rules, the Education Engineering Wing (EEW) of the Education (S) Department had not deposited the deducted VAT amount of Rs. 2.34 crore into the government account even after a lapse of more than four years, which amounted to a loss of government revenue.
During the period from September 2013 to March 2018, EEW received an amount of Rs. 90.09 crore from the National Institute of Technology (NIT), Manipur, for undertaking various deposit works for the development of infrastructure at NIT, Manipur. The amount so received was inclusive of 5.6 percent VAT, amounting to Rs. 4.30 crore, which was to be deposited in the designated bank within seven days from the expiry of the month of receipt.
However, out of the total amount deducted as VAT, the EEW had deposited only Rs. 1.96 crore, with delays ranging from 51 days to 385 days, for which a penalty of double the amount of tax, i.e., Rs. 3.92 crore, was payable. The balance of Rs 2.34 crore (Rs. 4.30 crore – Rs. 1.96 crore), is yet to be remitted into the government account.
The Government of Manipur, in its notification no. 5/45/2006-FD (TAX) dated September 3, 2009, had notified that the amount of sales tax deducted at source should be deposited by the Drawing and Disbursing Officer (DDO) within seven days from the expiry of the month. And, in case the DDO fails to deposit the tax within the prescribed period, he shall be liable to pay a penalty not exceedingly double the amount of tax not so deposited.
Further, Rule 7 of the General Financial Rules, 2017 stipulates that all money received by or on behalf of the government, either as dues of the government or for deposit, remittance, or otherwise, shall be brought into the government account without delay.
Thus, in violation of the government order and financial rules, the EEW had not deposited the deducted VAT amount of Rs 2.34 crore into the government account even after a lapse of more than four years, which amounted to a loss of government revenue. A penalty of Rs 8.6 crore is also liable to be paid by EEW on account of failure to deposit the government revenue within the prescribed time period.
Non-deposit of VAT amount would affect the State Government’s Tax Revenue. The amount needs to be deposited into on priority basis and also take appropriate action against the incumbent officer responsible for such lapses.

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