Sikkim thanks the Sun

CHHATH PUJA CELEBRATION AT THAKUR BARI

ANUSHA GURUNG
source:Sikkim Now

GANGTOK, 19 Nov: Chhath Puja, also called Dala Chhath, is an ancient Hindu festival dedicated to the Hindu Sun God also known as Surya Shashti is being celebrated at Thakur Bari Mandir from 17-20 November by the Chhath Puja Committee of Gangtok.

Gangtok MLA, Dorjee Namgyal, accompanied by HRDD Minister, NK Pradhan, RM&DD Minister, CB Karki, and other dignitaries joined the prayers in which thousands participated this evening.

The Chhath Puja is performed in order to thank Surya for sustaining life on earth and to request the granting of certain wishes where the Sun, considered the god of energy and of the life-force, is worshiped during the Chhath festival to promote well-being, prosperity and progress in Hinduism, Sun worship is believed to help cure a variety of diseases, including leprosy, and helps ensure the longevity and prosperity of family members, friends, and elders informed the president of the committee Kaushal Kashyap. The rituals of the festival are rigorous and are observed over a period of four days. They include holy bathing, fasting and abstaining from drinking water [Vratta], standing in water for long periods of time, and offering Prashad [prayer offerings] and aragh to the setting and rising sun.
Although it is observed most elaborately in Bihar, Jharkhand, Eastern UP and the Terai regions of Nepal in modern times, and is more prevalent in areas where migrants from those areas have a presence, it is celebrated in all regions and major urban centers in India. The festival is celebrated in the regions including but not exclusive to the northeast region of India, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Chandigarh, Gujarat, Delhi, Mumbai and Mauritius. These days the community comes together to celebrate this festival which is a good sign of unity and can help promote peace in the whole world, said Mr Kashyap.

CBDT bats for penalty waiver in retro tax cases; boost for Vodafone?

CBDT bats for penalty waiver in retro tax cases; boost for Vodafone?

by Ashwin Mohan, ET Now Nov 16, 2012, 11.15PM IST



(CBDT has recommended waiver…)
In the first indication of a softening of stance from revenue authorities on the controversial retrospective tax laws introduced in budget 2012, the country's apex tax body, the Central Board of Direct Taxes or CBDT has recommended waiver of penalties in cases where tax laws are applied retrospectively, two government officials familiar with the development told ET NOW.

"An internal committee has finalized its report on the Shome Panel's recommendations on retrospective tax laws. It has favoured waiver of penalties in "appropriate cases" but has opposed waiver of the interest component. The report will be soon submitted to the Finance Ministry," said one of the two individuals cited above.

On October 8th 2012, the government appointed Parthasarathi Shome panel had recommended that in cases where retrospective tax laws are applied, adequate safeguards are needed in the form of interest and penalty waiver on the tax demands raised.

"In all cases where demand of tax is raised on account of retrospective amendment relating to indirect transfer...no interest...should be charged in respect of that demand so that there is no undue hardship caused to the tax payer," the panel said.

"Initially, the committee was in favour of rejecting both interest and penalty waivers, but a later a middle ground was reached. The interest component cannot be separated from the tax demand and thus cannot be waived off ," said a senior government official.

Tax experts feel if the CBDT's report is accepted and implemented by the Finance Ministry, then British telecom giant Vodafone's total tax bill in India will be reduced by nearly Rs 8000 crore rupees ie the penalty sought by the income tax department for failure to withhold tax on the 2007 acquisition of Hutchinson's mobile assets in India.

In October 2010, the tax department had slapped a Rs 11,218 crore tax notice ( including principal plus interest) on Vodafone. This lead to a protracted legal battle which ultimately ended with the Supreme Court ruling that the income tax department had no jurisdiction to tax the deal.

Budget 2012 sought to overturn the apex court order by retrospectively amending the tax laws on indirect transfer of assets

Who is who in Income tax in Sikkim

Mr Subroto Sarkar

Commissioner of Income tax- Siliguri

Mr P D Kanunga

Jt Commissoner of Income tax

Mr Lendup Lepcha

Asst Commissioner of Income tax

Gangtok

Mr N L L Sherpa

Income tax Officer- Gangtok.

Press Release of SCC
Ref. No.SCC/2012-13/
November 22, 2012

The Commissioner of Income Tax,
Income Tax Department,
Government of India,
Gangtok-Sikkim

M E M O R A N D U M

Sir,
The Sikkim Chamber of Commerce welcomes you to the small peaceful and beautiful state of Sikkim. As understood by us the very reason for your visit is to understand the reasons of non compliance of Indian Income tax extended in Sikkim in the year 2008. The Sikkim Chamber of commerce on behalf of all communities in Sikkim submits the under mentioned for your kind information and necessary action please.

History of Old Settlors in Sikkim.

The various communities comprising mostly of people who migrated from different parts of India have been settled in Sikkim from centuries when Sikkim was a country under the regime of Chogyal Dynasty. The then erstwhile kingdom treated all the communities equally in all aspects of life. In the year 1961, the Government of Sikkim enacted Sikkim Subject regulations Act 1961 and issued Sikkim Subject certificates to the citizens of Sikkim. The Indian citizens residing in Sikkim until April 26, 1975 chose not to obtain Sikkim Subject Certificates under the provisions of the Sikkim Subjects Regulation, 1961 as they were already citizens of India. Sikkim was a protectorate of India under the Indo-
Sikkim Treaty of 1950 under which all Indian citizens residing in Sikkim were treated at par with the Sikkimese people. There was no discrimination during the regime of the Chogyal and the Sikkim Income Tax Manual, 1948 was applicable equally to all persons residing in Sikkim until 16/06/2008 as per Circular No.2/Fin/Adm. dated 16/06/2008 issued by the Finance Department, Government of Sikkim. On 26th April 1975, Sikkim merged with India as per Article 371 (f) of the Indian constitution. The Sikkim Subject was repealed and Certificate of Identifications were issued to Sikkimese citizens and it was issued by Govt. of Sikkim. There were large number of people who were left out from becoming Indian citizen who were neither Indian nor Sikkimese, the Sikkimese Citizen having Sikkim Subject automatically became citizen of Indian, so the government through the MHA Order No.26030/36/90-IC-I dated 7/8/1990 and April 8, 1991 on the basis of MHA Order No.26030/69/88-IC-I dated 20th March 1989 with Guidelines thereto made them citizen of India and issued them Certificate of Identification. Indians were not required apply for COI as they were already Indians.

Extention of Indian Income Tax Act 1961 in Sikkim

The Indian Union extended the Income tax Act 1961 in Sikkim as per sec 10 of 26 AAA on 16/06/2008 as per Circular No.2/Fin/Adm. dated 16/06/2008 issued by the Finance Department, Govt. of India. The definition of “Sikkimese” as explained by the act deprived us of our identity and is discriminatory towards original Indians residing in Sikkim before its merger with Indian Union. As per the definition of “Sikkimese”, people who were neither Sikkimese nor Indian but made Indian vide MHA Order No.26030/36/90-IC-I dated 7/8/1990 and April 8, 1991 were exempted but at the same time the original Indians were denied of their legitimate rights.

Representations made by the communities so far and the outcomes

The various communities residing in Sikkim since pre merger era i.e. before 26th April 1975 have made several representations to different forums for inclusion of 400 families who are left out from the purview of Income tax exemption, the details are as under :

1. Petition in Rajya Sabha Petition Committee

A petition to seek equal rights and exemption of Income Tax and to safeguard the rights of bonafide Indian National Citizens residing in Sikkim before the merger is filed and accepted by the Rajya Sabha Petition Committee. The Committee was to visit Sikkim and conduct the hearing of affected citizens on 21st September 2011 but because of a massive earthquake in Sikkim on 18th September 2011 their visit was cancelled. The committee again was supposed to visit Sikkim on 16th of September 2012 for final hearing to reach upon conclusion but the visit was again cancelled due to imposition of code of conduct due to panchayat elections. The decision of the committee is still pending which is due any time from now.

2. Representation to Hon’ble Finance Minister, Govt. of India

A representation from the affected citizens were submitted to the then Honb’le Finance Minister vide letter on 14.12.2011 ( Annexure 1 ) and on hearing upon our grievances we were assured by him to look into the matter for consideration of Indian Income Tax exemption to the left out old settlers of Sikkim. The Honb’le Minister made a statement on record and assured in the Parliament on 12/12/2011 that “So far as Sikkim is concerned, I am receiving representations and some representations I have already received. I am looking into it.” ( Annex-2) when the issue was raised by the Shri. S. S. Ahluwalia, Member Rajya Sabha. As informed to us the matter is under active consideration and results awaited.

3. Representation to Hon’ble Chief Minister of Sikkim, Shri Pawan Kumar Chamling

We have submitted a memorandum to the Honb’le Chief Minister of Sikkim to grant exemption of Income tax to bonafide Indian national residing in Sikkim before 26th April 1975. The State Government acting on the memorandum took following actions
a) Acknowledging our genuine demand the state government formed a committee to study the issue and make recommendations to the government. (Please see Annex-3)
b) Passed a private memo in Assembly (Please see Annex-4).
c) Passed resolution in assembly on 26/03/2011 (Please see Annex-5)
d) Made recommendations to Govt. of India and raised the issue with Honorable Prime Minister of India and the then Hon’ble Finance Minister Shri Pranab Mukherjee. (Please see Annex-6)
e) The Chief Secretary wrote a letter on 21.01.2012 to Sri Mukesh C. Joshi, Chairman Central Board of Direct Taxes, Ministry of Finance, and Govt. of India. (Please see Annex-7)
The matter is still under consideration and no parties till date has denied to grant exemption and the deliberation on the issue is at its peak.

4. Representation to Income Tax Department, Sikkim and in Siliguri
There were memorandums submitted to various IT officials but no action or even reply has been received from their end.
5. Situation of Business Communities settled in Sikkim after post merger

The extension of Indian Income Tax has not only created havoc amongst the old Settlors but it has been very difficult for the post merger business communities to adopt the act. The Income tax manual 1948 was followed until 16/06/2008 and the post merger settlers were following it for almost 33 years. The calculations were very simple. The complexity of the taxation rules as per Income Tax Act 1961 has to be well taught to all for successful implementation of same. Moreover large numbers of businessman have already paid their taxes upto the financial year ending March, 2008 under Sikkim Income Tax manual to the Government of Sikkim. Since decades the business communities have been running their businesses in Sikkim as Hindu Undivided Family (HUF), everything is in the name of Head of the family. The assets and income actually belong to all members of the family. No tax planning has been done as it is done in other parts of the country.

Sir, in view of above facts and considering the complexities of the issues involved we request and suggest you that :

a) All matters pertaining to Central Income Tax for pre merger business communities i.e. a person residing in Sikkim prior to 26th April 1975 be kept in abeyance until the matter and demands from the affected citizens to the various
forums as stated above is resolved. The community at large is waiting for its long pending demands made to the concerned authorities and final conclusion from there end is still awaited. It is also submitted that the issue here is not related to Income Tax but is demand for their legitimate rights and to safeguard their identity.

b) For successful implementation and acceptance of Indian Income tax amongst the post merger residents of Sikkim, the Sikkim Chamber of Commerce suggests that the same should be implemented from a prospective date i.e. 01/04/2013. In the meantime proper training and guidance be provided to them by creating a conducive atmosphere and by conducting seminars and camps to educate them.

We heartily appreciate the gesture of your esteemed department for conducting such a meeting with the public to identify their problems and grievances and we expect the same gesture in future as well.

Thanking you,
With warm regards,

(Ashok Sarda)
President
Sikkim Chamber of Commerce

source:voice of sikkim

Memorandum submitted to CIT,Siliguri at Gangtok at a function at Hotel Tashi Delek on 22.11.2012

The Commissioner of Income Tax, Siliguri

Income Tax Department

Ministry of Finance

Government of India

Camp: Gangtok, Sikkim

Sirs,

We are grateful to your goodself  for having spared your valuable time to be with us to understand the ground realities in respect to implementation of Direct taxes in Sikkim subsequent to amendment brought about by Finance Act 2008, inserting a new clause 26AAA in Section 10 of the Income Tax Act 1961.

May we submit that on several past occasions we  have impressed upon the   Central Board of Direct Taxes on the need of such a meet.

Sir, Sikkim ,a totally different country was made a State of the Union of India in 1975.Till 2008, the income tax law of Sikkim was- Sikkim Income tax manual 1948, which was uniformly followed by one and all for 60 long years.

There appears to have been some inadvertent omissions while defining the word ‘Sikkimese’ in reference to Clause 26AAA which does not cover all those who were entitled to income tax exemption. The old settlers have been permanently residing in Sikkim since last 100 to 130 years and unfortunately left out by non application of principles of equality and  further without having been heard on merit. The discrepancy by non inclusion is being repeatedly brought to the notice of Sikkim Government and Union Government .

In our various memorandums to The President of India, The Prime Minister of India, The Home Ministry, The Finance Minister and CBDT, we have explained and submitted at length as to how the old settlers are also Sikkimese and  how they have been genuinely left out from being considered for exemption on grounds of  having been similarly situated.

Sir, The Government of Sikkim having considered our demands duly constituting a committee and finding the same as just and genuine, has been kind enough to pass

a historic  resolution in the Sikkim Legislative Assembly urging the Union Government to cover these left out people also under the exemption bracket.

Our Chief Minister Shri Pawan Chamling  personally wrote a DO to then Finance Minister and urged the Government of India to rectify the anamolies.

Our Hon’ble  Chief Minister again met the Honourable Prime Minister of India  and raised the issue of grant of income tax exemption to left outs and Hon’ble PM gave a very positive assurance on the subject. The people of Sikkim and The Government of Sikkim headed by our beloved Chief Minister Shri Pawan Chamling have continuously supported and are with us on the issue.

His Excellency, the Governor of Sikkim Shri Balmiki Prasad Singh in the last four Budget Address has  hoped that the demand placed by the State Government in respect of Income tax Exemption to the of the Left-out communities including members of the old business communities of Sikkim will be addressed by the Central Government soon.

 His Excellency specifically said

“ This will ensure that the social cohesion and harmony prevailing in Sikkim be further strengthened and consolidated.”

Similarly, Hon’ble  Finance minister in his speech in the Parliament during Budget 2012 said the matter is under the consideration of the Government of India.

Lately, The Parliamentary Standing Committee On Finance has also taken cognizance of our submissions and has been been kind enough to recommend

to the  Government of  India to take suitable measures to include the  old settlers in the scheme of income tax exemption.

Your honor would appreciate that making Sikkim an Indian State was a unique and historic event as it involved merging of two different countries, their cultures and their laws,  and hence deserves a special place in application of laws with due regard to principles of equality and natural justice enshrined in the Constitution .

We cherish your visit to Sikkim as historic and hope that  you will convey the ground realities to the Central Board of Direct Taxes and Hon’ble Finance Minister of  India such that they get the right feel of the problem that lies in Sikkim- a very sensitive border State.

Sir, It is time that the aspirations of all section of people of Sikkim is considered positively leaving no one unhappy and that will usher in building a happy Sikkim, a peaceful Sikkim and a strong Sikkim and finally a strong India.

With highest regards

Yours Faithfully,

S K Sarda

President, Association of Old Settlers of Sikkim

Dt 22.11.2012

Gangtok

Sikkim: 150 students selected for State sponsored coaching

November 22, 2012 Source iSikkim

Altogether 150 youths of Sikkim, holding graduation and above degrees, would be undergoing State sponsored coaching classes in New Delhi, Hyderabad and Tamil Nadu for appearing in UPSC and Staff Selection Commission (SSC) exams.

These youths were selected from an entrance exam conducted by the State Human Resource Development (HRD) department on October 31 following Chief Minister Pawan Chamling’s announcement to give free coaching to Sikkimese youths in best coaching centres of the country.

During his tour of schools earlier this year, Chamling had announced to provide training in reputed coaching centres to interested students of Sikkim so they can give entrance exams of national services like UPSC and SSC.

Out of a total of 145 candidates, 130 students passed the State level entrance exams for UPSC coaching scheme. The remaining 15 students were given the opportunity to undergo coaching for SSC exams along with five other students who appeared for this particular scheme.

Speaking with SIKKIM EXPRESS, HRD secretary CS Rao said: “The 130 candidates who have been selected forundergoing the UPSC coaching scheme would be studying in various reputed institutes in New Delhi, Hyderabad and Tamil Nadu. We have inspected and selected the best coaching centres of the country. The twenty candidates selected for the SSC coaching will be sent to New Delhi”. Around Rs. 3 crores would be spent by the State government on sponsoring these 150 candidates in the coaching centres. The State government is also providing accommodation and food expenses besides giving a onetime grant of Rs. 10,000 to each candidate as travelling costs. The candidates would be leaving this month to their respective coaching centres and attend their course which range from 5 months to 11 months. Each candidate has signed an undertaking with the HRD department promising not to abandon their courses midway.

Asked about the State government’s expectations from its maiden initiative to prepare Sikkimese youths for Central services, the HRD secretary said that the Chief Minister and State government would be pleased to have a success rate between 25 to 50 percent. “The government and especially the Chief Minister will be happy if 25 to 50 percent cracks the Central service examinations. We are hopeful that our selectedstudents would crack the exams after attending the coaching classes and bring laurels for the State in days to come”, he said.

The selected students have thanked the Chief Minister and State government for the coaching initiative. “It is a wonderful opportunity for the educated youths of Sikkim and we thank the Chief Minister for this. It is impossible for middle class youths to attend such coaching classes on their own expenses. To receiving coaching from reputed institutes is a dream come true for us”, said Bhuman Basnet from Namchi. Basnet has cleared the entrance exam for UPSC coaching scheme. “I take this opportunity as a blessing and will attend the coaching classes with full dedication. I will try my best to crack the UPSC exams and bring glory to our State”, he said. “I had a dream since childhood to become an IAS officer and today I feel that I am moving closer to achieve that dream through the coaching facility started by the State government. I thank our Chief Minister for making this facility possible for me. I could not have afforded to attend the coaching classes on my own”, said Avinash Lamichaney from Pani House, Gangtok.

Central IT officials to review exemption demand of Old Settlers

Central IT officials to review exemption demand of Old Settlers

GANGTOK, 20 Nov: The old settlers community of Sikkim is gearing up for another round of negotiations with central Income Tax officials to push their case seeking Income Tax exemption at par with other Sikkimese who were granted exemption by the centre in the year 2008. Ever since the Sikkim Subject and Certificate of Identification holders in the state were granted exemption from paying direct income Tax, the Old Settlers [mostly members of the old business community] have been petitioning both the state and central governments to be equated with the Subject/ CoI holders in Sikkim and given the same benefit.
A senior Income Tax official along with officials from the Siliguri IT circle is reportedly scheduled to arrive in Gangtok on 22 November for a meeting with the community members. The agenda is primarily to understand the demand seeking IT exemption as put forward by the old settlers of the state. While their demand has already been explained often and extensively to central officials, the change of guard following transfer of officials especially in the IT department and in the Siliguri IT circle has led to the demand having to be explained again.
On the other hand, it is also informed that the IT officials will also be here with the aim to look at implementing Clause 26AAA of the Finance Act, 2008 in the state whereby those without Sikkim Subject Certificates or Certificates of Identification are liable to pay central income tax. Those falling under the liability aspect of this clause are largely members of the business community and though the Income Tax office here in Gangtok has been repeatedly sending them notices to file their IT returns, the community has remained adamant on their stand claiming exemption.
This has created problems for the income tax officers as they are directed by New Delhi to meet targets [on IT collection]. In other words there is a particular amount set as target which the IT office here has to collect.
Their main ground of ignoring the notices is that their petitions for IT exemptions are in process of being considered by the central government. The old settlers have been pushing to be granted exemption to end discrimination and their primary demand is that those having settled in Sikkim before 1975 be given exemption. As for those having settled here post 1975, they have been demanding that the process of filing IT returns, being new to Sikkim, be explained to them for which some kind of workshop or seminar be organized by the IT office. ( Source  Sikkim Now)