Hired transport employees in Punjab not to pay service tax

Chandigarh, Apr 25 (UNI) More than 2000 employees, including drivers, conductors and cleaners engaged by contractors for Punjab Road Transport Corporation (PRTC) were given a major relief, with the Punjab government agreeing to bear the 12.5 per cent service tax burden, which was being deducted from their salaries.

Making this announcement here today Chief Minister Parkash Singh Badal asked the Transport Department to make arrangements in such a way that the employees do not have to bear the deduction of the service tax every month.

The Chief Minister issued these directions at 'Sangat Darshan' when a delegation of employees engaged by contractors of PRTC pleaded that after the notification of new Finance Act by the Union Government, contractors had started deducting 12.5 per cent service tax from their monthly salaries. They said that Rs 625 was being deducted from an employee getting an average salary of Rs 5000 per month.

Mr Badal informed the delegation that he had already discussed this issue in a meeting with Transport officials. The PRTC has been asked to re-enter into contracts with each contractor and the government will bear the 12.5 per cent service tax burden, he added.

During the meeting, the Chief Minister gave a grant of Rs 50,000 to a four year son of a PRTC employee from Gurdaspur district for an open heart surgery operation.

UNI