SIKKIM VAT: Contractors’ body welcomes VAT exemption assurances



GANGTOK, March 11: All Sikkim Contractors Welfare Association (ASCWA) has welcomed the State Government’s assurances to exempt third and fourth grade contractors in the State from VAT.

The ASCWA had submitted a request for such exemption to the State Finance department a couple of months ago.

“The Finance secretary has given verbal assurance to us to exempt the small contractors from VAT. We welcome this”, told ASCWA president Tenzing Bhutia to media after meeting with the Finance secretary today.

We have been informed that the State government is considering exempting contractors who are doing job works below Rs. 20 lakhs, Bhutia said. But in this scenario, the contractors have to purchase all items for the job from within the State, he added. Any item purchase from outside Sikkim will attract VAT, he said.

Similarly, we have been assured that there will be no VAT for fourth grade contractors for items below Rs. 10 lakhs, said the ASCWA president. He said that the ASCWA has been informed that some time will be required by the government to implement the exemption assurances. We have requested for swift implementation of the assurances, he said.

The decision of the government will greatly benefit the third and fourth grade employees in rural and village areas, said Bhutia.
The contractors’ body had also requested that the timeframe for filing returns by the contractors to be enhanced to one year instead of every three months guideline.

We were informed by the Finance secretary that this is Central rule and the State government cannot do anything about this, said Bhutia.

SOURCE; sIKKIM EXPRESS