Assam Government Mandates Tax Compliance Self-Undertaking for Contractors

Staff Reporter

Guwahati: In a move aimed at strengthening statutory tax compliance and safeguarding government revenue, the Assam government has made it mandatory for all bidders and contractors to submit a self-undertaking confirming payment of statutory taxes.

According to an executive order issued by the Finance Department, the decision follows observations that several vendors and contractors have either failed to pay statutory taxes or have not paid them regularly. While Goods and Services Tax (GST) compliance is verified through the FinAssam system, the government noted that such verification is often missing in cases where payments are made through societies or other project-implementing entities, posing financial and reputational risks to the State.

To address the issue, the government has introduced two separate formats of self-undertaking. One format is applicable to new tender applicants, and it must be submitted along with bid or tender documents and will confirm that all statutory dues have been cleared up to the date of submission, with an undertaking to discharge any future liabilities during the contract period.

The other format is for contractors who already have contracts, and it needs to be submitted by them to confirm that they have paid all required fees up to now and that they will take care of any future payments during the rest of the contract.

The order directs all administrative departments to issue necessary instructions to their subordinate offices, including statutory bodies, commissions, and externally aided projects (EAPs), to ensure full compliance within 30 days. Any violation is to be reported to the Finance Department for appropriate action.

The new measure is in line with its policy of promoting transparency, integrity and strict adherence to applicable tax laws, while preventing loss of government revenue and protecting the interests of the state.

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