Meeting between central IT officials and business community ends in deadlock

AMMET OBEROI

GANGTOK, 22 Nov: The Commissioner of Income Tax, Siliguri, Subroto Sarkar, and the Joint Commissioner, PD Karwa, met with members of the business community of Sikkim to discuss issues and problems relating to the non-compliance of the community in filing their tax returns. The meeting, held today at Hotel Tashi Delek, ended in a deadlock. This, primarily because the sides are divergent agendas – the IT officials were here to convince the old settlers to file their Income Tax returns while the community keen on convincing the officials and the IT Office to include them in the exempted list at par with the Sikkim Subjects.
Addressing the huge gathering, the Commissioner stated that after having joined the office just about a month ago he has come to Gangtok to discuss the problems being faced, solve them and to advice the business community that as per law, they had to file their taxes if they were earning taxable incomes.

“The issue of Income Tax is at a very nascent state in Sikkim and there are certain problems, but as per the law [Clause 26AAA of the Finance Act, 2008], people [mostly members of the old business community] not having Sikkim Subject Certificates or Certificates of Identification in the state have to pay central taxes”, he said.

“The 400 families not of Sikkimese origin staying in Sikkim, according to the law, must file their returns as the white paper has already been signed between the state government and the central government regarding the issue and all who are not of Sikkimese origin have been asked to file their returns from the year 2007-08, but this is not being done,” he added.

On the demand that the old settlers be exempted at par with Sikkim Subjects, he said, “We are not the law making authority, but just the law implementing agency. The demand is beyond our purview to clear”. He went to urge the business community to first start paying their taxes, adding that only then could things start moving forward in the right direction.

The Sikkim Chamber of Commerce, in turn, submitted a memorandum to the Commissioner highlighting that they have urged and requested that the 400 families who have been left out from the purview of Income Tax exemption and all matters pertaining to Central Income Tax for pre merger business communities [person residing in Sikkim prior to 26 April, 1975] be exempted from the need to file IT returns until the matter and demands of the affected citizens to various forums is resolved.

The meeting with central Income Tax officials and the business community was 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.

Their main ground 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.

SK Sarda [president, Old Settlers Association of Sikkim] also handed over a petition to the Commissioner, wherein the problems being faced by the old settlers in the state were highlighted. He further urged that the problems faced be conveyed to higher authorities of the Central Board Direct Taxes [CBDT] and be resolved.

Mr. Sarda, in his address, highlighted that the SCC had, on several past occasions, “impressed upon the   Central Board of Direct Taxes on the need of such a meet”.

He went on to explain that, “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.”

Similarly, Prem Goyal [president, Sikkim Nagrik Sanghars Samiti] also placed a petition with the Commissioner. Speaking on his petition, he stated that the law passed in 1989 did not discriminate between the business community and other residents of Sikkim, but the rule passed in 2008 discriminates between the ‘non Sikkimese’ business community and Sikkimese and this has turned them into second class citizens here.
“There is a lot going on regarding the issue so until the issue is resolved the filing of Income Tax in Sikkim should be kept on hold by the IT department because forcefully implementing the law in the state could lead to tension,” he stated.

Meanwhile, the business community has resolved not to pay their returns until the issue is solved.

Sikkim Committee oppose issue of Residential

Posted on November 15, 2010 by iSikkim | Category: Latest News Local News Politics | 445 views | 3 Comments

Gangtok, Nov 14
Sikkim Subjects Bachao Committee submitted a memorandum to the Governor of Sikkim Balmiki Prasad Singh today at Raj Bhawan regarding the much debated Residential Certificate issue. Addressing a press conference today, Nawin Kiran Pradhan, the Vice Convener of this Committee, said that a meeting was held by the All Sikkim Educated Self Employed and Unemployed Association on 11th November, 2010 at Gangtok to discuss and deliberate upon the socio-economic and political implication of state Government Notifications No.119/Home/2010 and 120/ Home/2010 dated October 26,2010 issued by Chief Secretary to the Government of Sikkim regarding Residential Certificate and an amendment to the Notification regarding issue of Certificate of Identification respectively. He further informed that the said meeting was attended by two former MPs, president and leaders of various political parties, lawyers, prominent social workers, NGO representatives, students and concerned Sikkimese youth from all over the state.

Pradhan had begun the meeting by throwing light on these two Notifications and had also explained its implication for the future of Sikkim and Sikkimese. The participants also carefully read the two Notifications and expressed their views and comments on the same. Legal experts present in the meeting were of the opinion that these notifications will not pass the legal test as they are not based on any Act or statute passed by the Legislative Assembly. Hence, these notifications cannot be given effect to by the State administration.

The legal experts further pointed out that these two Notifications would have far-reaching implication on article 371F of the Constitution, the old laws of Sikkim and on certain fundamental rights of citizens of the state. Mr. Pradhan informed that considering the gravity of the issues and situations created by the two Notifications, the meeting unanimously took a decision to constitute a Committee to guide and spearhead a peaceful movement against the two illegal Notification and similar administrative instruments of the State and to prevail upon the Government to withdraw and cancel the ill conceived and illegal Notification, in the larger interest of the future generation of the Sikkimese society.

Nar Bahadur Bhandari, Chief Coordinator of the said Committee said that, they want to preserve special provision of Article 371 F. This is a baseless notification because there is no Act. He further mentioned that before issuing the Notification Legislative Assembly should pass the Act and without the Act in place the State Government cannot issue such a Notification.

Mr. Bhandari further added that they are not against any one, personally but this is a sensitive issue because this has a larger implication, to the whole of Sikkim. He also mentioned that H. E. the Governor is also concerned about this issue. Citizenship is a Central Government subject so the State Government has no right to issue the Certification of Identity to anyone without discussion with the Central Government.

Tseten Tashi Bhutia, another Coordinator of the said Committee appealed to all the IPS and IFS officers serving the State to read the old laws of Sikkim and to work sincerely in Sikkim for the larger benefit of all Sikkimese.

(Courtesy: Sikkim Mail)

Who needs Residential Certificate?

Posted on November 16, 2010 by iSikkim | Category: Featured Post Latest News Politics | 635 views | 11 Comments

The controversy over the Residential Card is getting more intense. While the government has geared up to get it implemented, the opposition is vehement not to let it see the light of day.

During his motivating lecture to the students at Chintan Bhawan Sikkim, Chief Minister Dr. Pawan Chamling asserted that these certificates will ensure that no more people from outside the state will be able to come and settle in the state. “Sikkim is the new land of opportunities and everybody wants to come here to use this opportunity,” said CM Pawan Chamling.

With the issue of Residential Certificates, only those who can prove that they were in Sikkim since 1975 will be eligible for the certificate, which is a prerequisite for working or establishing any kind of business in the state. Those holding Residential Certificates need not pay tax to the government, where as those who do not posses this certificate will be subjected to pay taxes.

But there are also concerns raised with such initiative of the ruling party. Tseten T. Bhutia, convenor of Sikkim Bhutia Lepcha Apex Committee (SIBLAC) feels that this scheme should have been debated by the people’s representatives and an act should be passed in the assembly.

With the merger with India in 1975, Sikkim got the status of 371 F which puts it in a special category under the constitution of India. Any laws subjected to the domicile of the state could overlap with the constitutional provisions laid by the Parliament.

The Sikkim National People’s Party (SNPP) slammed Residential Certificate project and said that the people of Sikkim have to remember that in the past the SDF Government has been increasingly going against the spirit of Article 371F and has been violating its provisions repeatedly. This move may be seen as one of them which will go on to crush the Sikkimese identity.

The concerns stand valid on the grounds that the Sikkim Subject Certificate (SSC) is already in practice. Any new move will be waste of public money. In the long run Resident Certificate will make SSC redundant. This would ultimately lead to a situation when the Sikkim Subject Certificate shall no longer be needed.

Sikkim also shares boundaries with China, Bhutan, and Nepal and is close to Bangladesh. Any plans should be discussed in public so as to not to create danger to national sovereignty.

Eligible Sikkimese to get RC in a month

Posted on February 8, 2011 by iSikkim | Category: Other Slider Post | 400 views | 2 Comments

Gangtok, Feb 8 (PTI):

People eligible for the recently notified Residential Certificates in Sikkim will have to wait a month or little longer to obtain it. These certificates, as per a state government notification issued a couple of months back, is to be issued to all those who have been residing in Sikkim since or before 26 April 1975 or are permanent employees of the state government, but do not have a Certificate of Identification [issued to Sikkim Subject Certificate holders and their descendants].

The matter is a hotly debated one between the ruling party and the opposition, with the latter seeing it as something which will dilute the status of the Sikkim subjects. Explaining the reason why the RCs had not yet been issued, a senior official at the District Administrative Centre [East] said that this was because the state government first wants the district authorities to complete the verification of Certificates of Identification. “As things stand, this task is to be completed by 20 February, but it is a major undertaking and could take longer”, the official said. After completing this verification of Sikkim Subject Certificates and CoIs, we will proceed with issuing RCs, the official said. Within a month or little longer we will be able to issue the first lot of RCs to the eligible applicants, he said. He said the authorities were currently working on the guidelines, shape, size, format, colour and other technical details of the RCs.

400 Sikkimese families refuse to pay tax

Posted on November 27, 2012 by iSikkim | Category: Featured Post Local News Slider Post | 90 views | 0 Comments

Gangtok, November 27, 2012

Around 400 business families in the state have turned down a request by the income tax department to file their returns and have demanded the same tax exemption which applies to people holding Sikkim subject certificates.

The Chogyal dynasty had issued the Sikkim subject certificates to the people living in Sikkim in 1961 under the Sikkim Subject Regulation Act of 1961.

The 400 business families, also known as “old settlers” had come to the state before 1975, the year Sikkim merged with India, but don’t possess Sikkim subject certificates.

They allege discrimination and demand a tax exemption similar to the one enjoyed by the certificate holders.

“The new income tax commissioner in Siliguri, Subrato Sarkar, had convened a meeting with the old settlers in Gangtok last week. Alleging discrimination, they have refused to file their income tax returns,” said the general secretary of the Sikkim Chamber of Commerce, Kailash Agarwal.

Sikkim was a part of the Chogyal Dynasty and became a part of India on April 26, 1975.

The central government had exempted Sikkim subject holders from paying income tax in 2008 after the amendment bill was passed in the Finance Act by the Parliament based on the state government’s request .

“We have been raising the matter with the central government on the income tax evasion to the old settlers. But so far, there have been no response. We will not file the IT returns,” said Agarwal.

“There are 400 families which have come to Sikkim before 1975. The list was prepared on the basis of government documents such as electricity bill, driving licence and trade licences” he added.

“I have filed a petition with the Rajya Sabha Committee in 2008 and the hearing on the matter is still pending” said Prem Goyal, the chief co-ordinator of Nagrik Sangarsh Samity.

“We are only the implementing agency and would comply with the income tax rules. We will again serve notices on those who are yet to file their returns” said an official source.

The Sikkim Chamber of Commerce has also requested the income tax department to conduct sensitisation workshops for those people who need to file their returns.

Courtesy: The Telegraph

For elders, Sikkim matters

SIKKIM SENIOR CITIZENS’ SOCIETY CONVENES SECOND GENERAL BODY MEETING

source Sikkim Now
GANGTOK, 23 Nov: The second General Body Meeting of Sikkim Senior Citizens’ Society was held at MLA Hostel Hall on 21 November. Justice (Retd.) AP Subba was present as the chief guest for the meeting presided over by former Chief Secretary and president of the organization, KC Pradhan.
As per a press release, forty members from all districts attended the four-hour long meeting. The deliberations covered all significant issues currently being faced by people in the state with special reference to senior citizens.
The release mentions that the most heated discussion revolved around LPG cylinders, its transfer, KYC, non-availability, distribution and the plight of the common people. A committee has been formed to discuss this issue with the concerned authority with a view to bring home the difficulties currently faced by the people and find remedial measures for systematic regularization, distribution and delivery. In view of winter months already setting in and Sikkim being a hilly state with cold climate the need for immediate redressal was highlighted.
Other matters ranged from social issues like drugs and suicides, slum-dwellers within Gangtok Municipal Corporation and their rehabilitation, traffic congestion and need for alternate highways and road-ways, maintenance of roads, organic farming and its proper understanding for better dissemination to the people at large and its inclusion in School curriculum, issue of Identity Cards to senior citizens duly indicating the benefits already being provided by the government, the influx of migrant population and its impact on the society and ways to tackle them also came into focus, the release informs.
Committees have been formed headed by senior competent members to study each of the issues threadbare and put up proposals for further deliberation and concretization before submission to the government for their consideration, the release mentions.
The body also felt the need to form sub-committees headed by senior members with leeway to select their own team from all strata of the society and directed the Executive Committee to put these sub-committees into operation at the earliest. The role of one of the committees is Intergenerational Interactions with a view to obtain the views of the younger citizens and incorporate them in the overall scheme.
Earlier, Justice Subba gave an insight on the Maintenance & Welfare of Parents and Senior Citizens Act. 2007 promulgated by the Government of India and all the members felt the need for its enforcement in Sikkim as well and resolved to approach the Government for its expeditious enforcement.
Also, one of the senior members expressed his concern over the disintegration and divisionism in the communities/ society and expressed that the organization should find ways and means with a view to bind all sections of the society together for the long term interest of the state. He specifically called for consensus to make all Sikkim Subject Holders and their immediate descendents as Tribals with a view to bring a sense of oneness and belongingness in the interest of the future generations.
It was informed that the state government has recently taken up with the Central Government the matter of bringing all the left-out ethnic groups under the Scheduled Tribe Status. The views were well appreciated and the issue being a complex one, the body was of the opinion that a core committee consisting of representatives of various sections of the community that matter should be constituted to examine the matter in greater depth and put up their views for further deliberation, the release adds.
The next General Body Meeting is resolved to be held in the first week of May 2013.

Asar Education Foundation” was opened today at Bhutia Busty, in Namchi

Namchi November 26: Non Governmental Organisation (NGO) named “ to endow with education and enlighten the under privileged children and those deprived of getting edification through formal classes.

The foundation, conceptualized and created by Ms. Komal Chamling and group of like-minded people, will be providing part time education to these children. 

This foundation has come up like a blessing to those childrens whose parents cannot afford to send their wards to educational institutions, who are the target of this NGO.

The said children will definitely be benefiting and learning the importance of knowledge and education which will be inculcated into their minds by the Foundation as they will be working towards empowering them by providing an education, thereby making them self reliant.

Classes will formally start from 27^th November 2012 on-wards, from 9 am to noon and will run throughout the year with some mandatory intervals.(IPR)