The administration has suffered a dent of Rs 4 lakh in its coffers due to failure of recovery of Value Added Tax (VAT) from PGI. The deficiency was pointed out by audit report, stating that the institute has not paid the required tax on its two major turnkey projects. The pending amount is to be paid by PGI.

The report recorded that it had outsourced its two projects on turnkey basis to a private company and a total amount of Rs 4 lakh was the VAT for the project.

The project included Gamma knife and Nuclear medicine. Gamma knife had a total cost of Rs 48 lakh and the nuclear medicine project was for Rs 1 crore, 57 lakh. The VAT for nuclear medicine amounted to Rs 3.25 lakh, which was not deducted and handed over to UT.

The audit report mentioned that no reply has been furnished by officials for the recovery of VAT. Official spokesperson PGI said, ''Once we get complete information on this, only then something can be done.'' VAT was to be charged for any purchase exceeding Rs 5 lakh.