Payments to suppliers of raw material for works under the rural job guarantee scheme MGNREGS in Bihar will henceforth be made only after two per cent TDS (tax deducted at source), in line with recent directions of the ministry of rural development (MoRD) following detection of evasion of goods and service tax (GST) by vendors in Bihar, officials familiar with the matter said.
About a month back, the office of principal accountant general office (audit) of Bihar had highlighted the anomaly, which, it said, enabled suppliers to suppress their turnover and evade GST. This prompted the state’s rural development department (RDD) to seek a clarification from the MoRD since as there was no provision of TDS on payments against material supplies in the MGNREGS software till recently.
Read more at : Hindustan Times
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