ITANAGAR, 23 Feb: Keeping an eye on the ensuing Assembly session, the All Arunachal Contractor’s Welfare Association (AACWA) has appealed to the state government to create ‘special gaping funds for tax amount’ to be paid to the contractors who were awarded projects works during the period of VAT, so that contractors can complete their pending projects ‘while maintaining proper taxation system.’
Highlighting the problems of the contractors after the introduction of the GST, the association, in its representation to the deputy chief minister on Monday said that many contractors who were awarded projects during the time of Value Added Tax (VAT) are facing huge financial burden due to introduction of the GST.
“Due to migration of the old taxation system, many contractors are facing extra financial burden as they have to pay GST at 10 percent, whereas during the periods of VAT, it was only 4 percent Work Contract Tax (WCT) of total works value,” the association said.
The association further said that the government should constitute a state level committee to know the actual problems being faced by contractors ‘while paying their taxes from VAT to GST’.
“The government should instruct all the executing departments to submit the total numbers of projects which were awarded during the time of VAT,” it added.
