Contractors evade tax for river extraction

NEPALGUNJ, May 22: A large number of contractors who have been extracting resources from various rivers in Raptisonari Rural Municipality have not paid the tax for the same to the government.

Despite repeated warnings, these contractors have failed to pay taxes worth more than Rs 10 million. Five different contractors have been extracting construction materials from the rivers in Raptisonari. According to the municipality, 'Sugandha Builders' which was awarded a contract to extract sand and stones from the Rapti River has evaded a good amount of value added tax (VAT) and other taxes.

Related story

1.3 million people exit Kathmandu Valley in a week

The company is yet to pay Rs 7.5 million in VAT and Rs 868,523 in Advance Tax to the Inland Revenue Office (IRO). As per the rule, a contractor is supposed to submit the voucher of tax payment to the municipality. But, the company has not presented the voucher to the local unit. One of the officials of the municipality stated that the company claims that it has already paid the VAT amount of around Rs 3 million but has not furnished the voucher.

Similarly, Kaligandaki Construction Company which has been extracting resources from the Muguwa River has only paid Rs 215,000 out of the total VAT amount of Rs 2 million and an Advance Tax of Rs 481, 500. Likewise, Rapti Ganesh Company which has signed a contract for the Jhijhari River has not paid a VAT of Rs 806,000 and an advance tax of Rs 186,000. 

Furthermore, another company, Anmol and Constructions, is yet to pay a VAT of Rs 3.1 million and an advance tax of Rs 361,501 to the IRO. The contractor has not submitted the voucher for the paid tax to the municipality though it claims it has already paid Rs 1.5 million in taxes.

Moreover, DC Construction Company has also not paid a VAT of Rs 2 million and an advance tax of Rs 240,000. As per the agreement, the DC Constructions should have paid 50% of the tax by the second week of March. However, the company has failed to pay even half of the tax amount even after so many months.