Sales tax to be deducted at source in Nagaland

DIMAPUR, Feb 26 – In a step ahead to tighten the loose ends of revenue generation the Nagaland Finance department has notified that the sales tax on commodities as well as on works contract as applicable has to be compulsorily deducted as source in respect of all payments made by government to the contractors. In spite of standing orders of the State government for compulsory deduction of sales tax at source in respect of all government payments to contractors, the Nagaland finance department source revealed to The Assam Tribune that it has been noticed that several departments and their DDOs are not properly complying with the order. The sources further added, in addition to various rates of sales tax levied on commodities supplied by the contractors to Nagaland government, sales tax at uniform rate of 8 per cent is also payable on all work contract under the Act. The department is contemplating to take appropriate action against the defaulters.