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PHE dept favours contractors; fails to deduct service tax worth lakhs 4/24/2016 12:32:33 AM Arun Singh ET Report JAMMU, Apr 23: To provide undue benefits to the contractors, the Public Health Engineering (PHE) Department did not deduct service tax of Rs 47 lakh from the payment bills of the works done under various schemes. Sources told Early Times that as per provisions of Jammu and Kashmir General Sales Tax Act, the service tax is to be deducted from the contractors for execution of works contracts but the service tax to the tune of Rs 47 lakhs of the works done in five divisions was short deducted from the payment bills of contractors which has till date not recovered by the department. "It was the duty of the senior officials of the department to ensure the deduction of the service tax from the payment bills of the contractors on the works related to various schemes under National Rural Drinking water Programme, as the amount deducted is further utilized in other developmental works of the state which was totally ignored by the PHE officials while making payments only to provide undue benefits the contractors," they maintained further adding that hundreds of the water supply schemes of crores of rupees were taken up in these five divisions which included construction of hands pumps, water reservoirs, tube well etc. They further informed that the main components of the programme were coverage of uncovered/ partially covered areas and the works which were carried out in five divisions were mainly part of the schemes under National Rural Drinking Water Programme giving prime focus on ensuring drinking water security to every rural household by utilizing multiple sources of water, ensuring the sustainability of the system, institutionalization of water quality programme through community participation, creation of awareness among masses, training of manpower and ensuring transparency in implementation through online Management Information System.   Share This News with Your Friends on Social Network     Comment on this Story

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