Representation seeking Amendment in Entry No.1 of Schedule-B, Annexed to GST_SRO 105 dated 31/03/2015, Chargeable Tax should be Continue @ 10% instead of @ 12%,for the work-contracts allotted, before the commencement of SRO 105/2015, dated 31/03/2015.
The Issue
The Hon’ble Minister For Finance,
(Dr.Haseeb A. Drabu Sahib),
Government of Jammu and Kashmir,
Civil Secretariat,Jammu/Srinagar.
E-mail: finance-jk@nic.in
Subject:- Representation seeking Amendment in Entry No.1 of Schedule-B, Annexed to GST_SRO 105 dated 31/03/2015, Chargeable Tax should be continue @ 10% instead of @ 12%,for the work-contracts allotted, before the commencement of SRO 105, for “Services provided in the shape of works contract”, on similar analogy of GST_SRO 170 of 2008 dated 06/06/2008, in which the previous Government was pleased to issue Notification for the continuance of Tax @ 4% instead of revised Tax @ 8%,in respect of registered dealers for the execution of works contract sanctioned and or contracted (allotted) upto 31.03.2007, and said proviso continuously carried on and updated upto Financial Year 2013-14.
Respected Sir,
We the PMGSY CONTRACTORS UNION JAMMU, most respectfully submits few genuine points for your kind consideration as under:-
1. That most of the allotments made by the State Contract Committee of PMGSY Organization of Jammu and Kashmir, under the Chairmanship of Hon’ble Cabinet Minister for Public Works(R&B) Department, Civil Secretariat Jammu/ Srinagar, before the commencement of SRO 105 dated 31st March, 2015.
2. That the DPRs (Details Projects Reports) of all these work-contracts awarded in favour of our Contractors/Agencies/ Firms/ companies, was prepared on the basis of “Analysis of Rate Schedule of 2007”. In year of 2008-2009, these DPRs were send to Government of India for approval and formal sanction alongwith required funds.
3. That all the work-contracts allotted in favour of our Contractors/Agencies/ Firms/ companies, after the year of 2009 to November-December 2015.
4. That all these projects are under “Centrally Funded Projects i.e.under Prime Minister's Gramin Sadak Yojna(PMGSY), and National Urban Renewal Mission {NURM), National Highway Development Project (NHDP), Central Roads Fund (CRF) and Asian Development Bank (ADS) funded projects, sanctioned and or contracted/awarded (allotted) to us “before 31.03.215”.
5. That these allotted/awarded work-contracts are still in progress and most of these were delayed on account of non-availability of Land(Dully Acquired Land) free from all encumbrance.
6. That involvement of Forest land and non-availability of forest land clearance from Ministry of Forests and non-payment of compensation of land, house-structures and fruit trees to the owners.
7. That at most of places,Land owners were remained adamant for want of compensation from revenue department and always created hindrances / bottlenecks day-to-day,but it is,unfortunate that the previous Government, did not took any immediate steps/efforts for resolution of hindrances / bottlenecks on these allotted projects throughout J&K state.
8. That with the long-gap of 4-5 years, everything in the market is escalated every day and there is sky-touching escalation, whereas, in PMGSY Organization, there is no any provision of escalation clause.
9. That since November-December-2014,the PMGSY Organization is without Programe Funds, due which our work done claims are laying in different PMGSY Divisions, whereas, Cheques issued by PWD(R&B)deposited with different Treasuries of J&K State, since last two (2) months, as treasuries are also empty, which is also one of reasons for delay and our Contractors /Agencies / Firms /Companies, are under stress, Mental agony, financial loss due to the over burden of impositions of compound interest by Financial Intuitions likes Banks and NBFCs and their Over dues for non-payments of Machinery, Labour and staff Wages.
10. That, Moreover, in view of agreements drawn with Competent Authority also speaks that all taxes are to be paid by the Contractors/Agencies/ Firms/companies, as per the applicable laws at time of execution of agreements with Competent Authority or tenders price bids received by the tenders floating or allotting authority.
11. That last year’s disaster, flood-flush, all over the state is one of another major cause for delay of execution of these allotted work-contracts.
12. That the Previous Government, had been pleased to notify to insert the Proviso-6, in Entry No. of Schedule-B, annexed to Original GST SRO 117 of 2007, vides Notification SRO 170 of 2008 dated 06.06.2008, and carries it forward till 2013-14, which is reproduced as under:-
{“ Schedule - B
5[Goods Chargeable to Tax at the rate of 10%]
1. Services provided in the shape of works contract.
6[ Provided that in respect of entry No.1 of Schedule '8' viz; "Services provided in the shape of works contract" the rate of tax shall continue to be 4% in respect of registered dealers for the execution of works contract on Centrally Funded Projects under Prime Minister's Gramin Sadak Yojna (PMGSY), and National Urban Renewal Mission{NURM), Mughal Road, National Highway Development Project (NHDP) and Asian Development Bank (ADS) funded projects only, sanctioned and or contracted (allotted) upto 31.03.2007; Provided further that the concerned Drawing and Disbursing Officer shall enclose a statement as per annexure appended to this notification with Form ST -61, in respect of contractors executing works contract as mentioned in the foregoing proviso and also issue duplicate copies of the said statement to the dealer who shall attach one copy of the same to his quarterly return. ]
7[Provided also that the job works, executed by registered industrial units on behalf of other registered industrial units, shall be exempt from tax.]
_______________________________________________________
1. Schedule A-I added vide notification SRO 274 dated 1st Sept. 2009.
2. The figure “25%” substituted with figure “30%” vide notification SRO 126 of 2012 dated 31.3.2012 w.e.f. 01.04.2012.
3. Words “Lottery tickets” deleted vide SRO 118 of 2011 dt.31.03.2011 read with SRO 01 of 2011 dt. 3.1.2011.
4. Entry deleted vide SRO 01 of 2011 dated 3.1.2011 and reinstated vide SRO 118 of 2011 dated 31.03.2011
5. The words and figure “Goods chargeable to tax at the rate of 8%” substituted by the Words and figures
“Goods chargeable to tax at the rate of 10% vide SRO 153 of 2010 dated 31st March 2010.
6. Proviso inserted vides Notification SRO 170 of 2008 dated 06.06.2008.
7. Third proviso added vides SRO 126 of 2012 dated 31.3.2012. “}
________________________________________________________
Keeping in view of above facts and figures, we all the member of PMGSY contractors Union Jammu, PWD(R&B),JDA,JMC and I&FC, most humbly pray to your good self to kindly take sympathetic consideration and issue the prayed amendment to Entry No.1 of Schedule-B, Annexure to SRO 105 of 2015 by way of Notification, the SRO 105/2015 should be applicable to those Work-contracts, which were awarded after the commencement/ notification of said Law, so that our Contractors/Agencies/ Firms/companies, should not put to further financial loss in respect of earlier allotments, in the interest of Natural Justice.
Thanking Sir Yours sincerely,
(A.H MUGHAL)
For PMGSY Contractors Union
Jammu.
Copy to: -
1. Hon’ble Chief Minister, Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar, for Information & seeks amendment please.
2. Hon’ble Deputy Chief Minister, Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar, for information & seeks amendment please.
3.Hon’ble Minister for Public Works(R&B) Department, Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar for information & seeks recommendation please.
4.Hon’ble Minister of State, Public Works(R&B) Department, Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar, for information & seek recommendation please.
5.Hon’ble MLAs of all the Constituencies for information please & seeks amendment as prayed for.
6.Chief Secretary of Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar, for information & seeks amendment as prayed please.
7. Commissioner Secretary to Finance Department, Civil Secretariat, Jammu/ Srinagar for further submission to Hon’ble Minister for Finance. E-mail : psfinance-jk@nic.in
8. Commissioner Secretary to P Department, Civil Secretariat, Jammu/ Srinagar for further submission to Hon’ble Minister for Public Works(R&B). E-mail:- pwd-jk@nic.in
9.Chief Engineer PMGSY Jammu, for information & seeks recommendations please.
10.Chief Engineer PMGSY Kashmir, for information & seeks recommendations please.
11. Office files for further reference & record.
The Issue
The Hon’ble Minister For Finance,
(Dr.Haseeb A. Drabu Sahib),
Government of Jammu and Kashmir,
Civil Secretariat,Jammu/Srinagar.
E-mail: finance-jk@nic.in
Subject:- Representation seeking Amendment in Entry No.1 of Schedule-B, Annexed to GST_SRO 105 dated 31/03/2015, Chargeable Tax should be continue @ 10% instead of @ 12%,for the work-contracts allotted, before the commencement of SRO 105, for “Services provided in the shape of works contract”, on similar analogy of GST_SRO 170 of 2008 dated 06/06/2008, in which the previous Government was pleased to issue Notification for the continuance of Tax @ 4% instead of revised Tax @ 8%,in respect of registered dealers for the execution of works contract sanctioned and or contracted (allotted) upto 31.03.2007, and said proviso continuously carried on and updated upto Financial Year 2013-14.
Respected Sir,
We the PMGSY CONTRACTORS UNION JAMMU, most respectfully submits few genuine points for your kind consideration as under:-
1. That most of the allotments made by the State Contract Committee of PMGSY Organization of Jammu and Kashmir, under the Chairmanship of Hon’ble Cabinet Minister for Public Works(R&B) Department, Civil Secretariat Jammu/ Srinagar, before the commencement of SRO 105 dated 31st March, 2015.
2. That the DPRs (Details Projects Reports) of all these work-contracts awarded in favour of our Contractors/Agencies/ Firms/ companies, was prepared on the basis of “Analysis of Rate Schedule of 2007”. In year of 2008-2009, these DPRs were send to Government of India for approval and formal sanction alongwith required funds.
3. That all the work-contracts allotted in favour of our Contractors/Agencies/ Firms/ companies, after the year of 2009 to November-December 2015.
4. That all these projects are under “Centrally Funded Projects i.e.under Prime Minister's Gramin Sadak Yojna(PMGSY), and National Urban Renewal Mission {NURM), National Highway Development Project (NHDP), Central Roads Fund (CRF) and Asian Development Bank (ADS) funded projects, sanctioned and or contracted/awarded (allotted) to us “before 31.03.215”.
5. That these allotted/awarded work-contracts are still in progress and most of these were delayed on account of non-availability of Land(Dully Acquired Land) free from all encumbrance.
6. That involvement of Forest land and non-availability of forest land clearance from Ministry of Forests and non-payment of compensation of land, house-structures and fruit trees to the owners.
7. That at most of places,Land owners were remained adamant for want of compensation from revenue department and always created hindrances / bottlenecks day-to-day,but it is,unfortunate that the previous Government, did not took any immediate steps/efforts for resolution of hindrances / bottlenecks on these allotted projects throughout J&K state.
8. That with the long-gap of 4-5 years, everything in the market is escalated every day and there is sky-touching escalation, whereas, in PMGSY Organization, there is no any provision of escalation clause.
9. That since November-December-2014,the PMGSY Organization is without Programe Funds, due which our work done claims are laying in different PMGSY Divisions, whereas, Cheques issued by PWD(R&B)deposited with different Treasuries of J&K State, since last two (2) months, as treasuries are also empty, which is also one of reasons for delay and our Contractors /Agencies / Firms /Companies, are under stress, Mental agony, financial loss due to the over burden of impositions of compound interest by Financial Intuitions likes Banks and NBFCs and their Over dues for non-payments of Machinery, Labour and staff Wages.
10. That, Moreover, in view of agreements drawn with Competent Authority also speaks that all taxes are to be paid by the Contractors/Agencies/ Firms/companies, as per the applicable laws at time of execution of agreements with Competent Authority or tenders price bids received by the tenders floating or allotting authority.
11. That last year’s disaster, flood-flush, all over the state is one of another major cause for delay of execution of these allotted work-contracts.
12. That the Previous Government, had been pleased to notify to insert the Proviso-6, in Entry No. of Schedule-B, annexed to Original GST SRO 117 of 2007, vides Notification SRO 170 of 2008 dated 06.06.2008, and carries it forward till 2013-14, which is reproduced as under:-
{“ Schedule - B
5[Goods Chargeable to Tax at the rate of 10%]
1. Services provided in the shape of works contract.
6[ Provided that in respect of entry No.1 of Schedule '8' viz; "Services provided in the shape of works contract" the rate of tax shall continue to be 4% in respect of registered dealers for the execution of works contract on Centrally Funded Projects under Prime Minister's Gramin Sadak Yojna (PMGSY), and National Urban Renewal Mission{NURM), Mughal Road, National Highway Development Project (NHDP) and Asian Development Bank (ADS) funded projects only, sanctioned and or contracted (allotted) upto 31.03.2007; Provided further that the concerned Drawing and Disbursing Officer shall enclose a statement as per annexure appended to this notification with Form ST -61, in respect of contractors executing works contract as mentioned in the foregoing proviso and also issue duplicate copies of the said statement to the dealer who shall attach one copy of the same to his quarterly return. ]
7[Provided also that the job works, executed by registered industrial units on behalf of other registered industrial units, shall be exempt from tax.]
_______________________________________________________
1. Schedule A-I added vide notification SRO 274 dated 1st Sept. 2009.
2. The figure “25%” substituted with figure “30%” vide notification SRO 126 of 2012 dated 31.3.2012 w.e.f. 01.04.2012.
3. Words “Lottery tickets” deleted vide SRO 118 of 2011 dt.31.03.2011 read with SRO 01 of 2011 dt. 3.1.2011.
4. Entry deleted vide SRO 01 of 2011 dated 3.1.2011 and reinstated vide SRO 118 of 2011 dated 31.03.2011
5. The words and figure “Goods chargeable to tax at the rate of 8%” substituted by the Words and figures
“Goods chargeable to tax at the rate of 10% vide SRO 153 of 2010 dated 31st March 2010.
6. Proviso inserted vides Notification SRO 170 of 2008 dated 06.06.2008.
7. Third proviso added vides SRO 126 of 2012 dated 31.3.2012. “}
________________________________________________________
Keeping in view of above facts and figures, we all the member of PMGSY contractors Union Jammu, PWD(R&B),JDA,JMC and I&FC, most humbly pray to your good self to kindly take sympathetic consideration and issue the prayed amendment to Entry No.1 of Schedule-B, Annexure to SRO 105 of 2015 by way of Notification, the SRO 105/2015 should be applicable to those Work-contracts, which were awarded after the commencement/ notification of said Law, so that our Contractors/Agencies/ Firms/companies, should not put to further financial loss in respect of earlier allotments, in the interest of Natural Justice.
Thanking Sir Yours sincerely,
(A.H MUGHAL)
For PMGSY Contractors Union
Jammu.
Copy to: -
1. Hon’ble Chief Minister, Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar, for Information & seeks amendment please.
2. Hon’ble Deputy Chief Minister, Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar, for information & seeks amendment please.
3.Hon’ble Minister for Public Works(R&B) Department, Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar for information & seeks recommendation please.
4.Hon’ble Minister of State, Public Works(R&B) Department, Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar, for information & seek recommendation please.
5.Hon’ble MLAs of all the Constituencies for information please & seeks amendment as prayed for.
6.Chief Secretary of Govt. of Jammu and Kashmir, Civil Secretariat, Jammu/ Srinagar, for information & seeks amendment as prayed please.
7. Commissioner Secretary to Finance Department, Civil Secretariat, Jammu/ Srinagar for further submission to Hon’ble Minister for Finance. E-mail : psfinance-jk@nic.in
8. Commissioner Secretary to P Department, Civil Secretariat, Jammu/ Srinagar for further submission to Hon’ble Minister for Public Works(R&B). E-mail:- pwd-jk@nic.in
9.Chief Engineer PMGSY Jammu, for information & seeks recommendations please.
10.Chief Engineer PMGSY Kashmir, for information & seeks recommendations please.
11. Office files for further reference & record.
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Petition created on 14 June 2015