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Saturday, August 9, 2008

MORE NEWS ON INCOME TAX

Gangtok, 6 August: All the Sikkim Subject holders have been exempted from the Central Direct income Tax from 2008 except for those residing in Sikkim without Sikkim subjects who still have to pay the income tax to the central government as per the information given by TT Dorjee, Additional Chief Secretary cum Principal Secretary for Finance, Revenue & Expenditure Department Government of Sikkim in his inaugural speech in the seminar,which was held on 24 July 2008.Today the office of the income tax, Government of India was inaugurated at Bhanupath, Gangtok.

The Inaugural occasion of the income tax office was graced by the presence of Bonani Gosh, Commissioner, Income Tax, AK Pramanik, Assistant officer Income Tax along with the members from the different bussiness associations. Bonani Gosh, Commissioner, Income Tax appealed to all the businessmen to cooperate with them thereby paying their taxes regularly. While speaking with the press people, Commissioner said that, actually Government of India was Planning to establish the office of income tax in 1984, but due to some unavoidable political reason the central was unable to do so, but presently after having a prolonged discussion with the State government, the Central government has come up with the office in Sikkim. For the time being the office will be guided under the authority of the siliguri branch of Income tax ,he added .

A Series of workshop and seminar on Income Taxes will be held in Sikkim under different level. The Direct income tax have been enforced from 2008 to the entire non Sikkim subjects holder as per Income Tax Act 1961. At the same time Bonani Gosh, informed that, there will be four officers in Sikkim with LD Lepcha as Income Tax Officer, Tshering Ongda as Assistant Commissioner including Additional Commissioner and Commissioner.

Roshan Rai

INCOME TAX CONFUSION

Sikkim taxpayers confused over terms of circular

Sarikah Atreya
(Business Line)

Gangtok, Aug 8 It has been barely two days since the new Income-Tax Office in the State was inaugurated, but taxpayers here seem to be a confused lot.

The confusion stems from a July 29 circular issued by the Central Board of Direct Taxes, which has sought to clarify the position and the mechanism of Central direct taxes in Sikkim.

The people who come under the purview of direct taxes said they were confused over Section 2 (d) of the circular which says that “for the assessment year 2008-09 and subsequent assessment years, assessment or re-assessment, if required, shall be made in accordance with the provision of the Income-Tax Act, 1961” — this refers to the financial year 2007-08. In simpler terms, the people have to file their income-tax returns for the financial year 2007-08 according to the notification.

Taxing issues


This means the members of the business community and government employees in Sikkim, who have already paid their taxes under State Income-Tax Manual, 1948, may be subject to a dose of double taxation.

“How can we be double-taxed because we have already paid our taxes under State Income Tax Manual till June 16, 2008. There is no question of double taxation,” a businessmen said.

“We were of the view that the Central direct taxes would come into effect from April 1, 2008, which means the assessment year would be for 2009-10 and the financial year would be 2008-09,” he said.

Ms Bonani Ghosh, Commissioner of Income-Tax, told Business Line that the matter had been taken up with the Chief Commissioner based in Kolkata.

Friday, August 8, 2008

IMPORTANT INCOME TAX ANNOUNCEMENT

INSTRUCTION NO 8/2008,
Dated: July 29, 2008

ORDER UNDER SECTION 119(2)(a) OF THE INCOME TAX ACT, 1961

Vide Finance Act, 2008, a new clause (26AAA) has been inserted in section 10 of the Income Tax Act, 1961 ('Act') with retrospective effect from assessment year 1990-91. Under the said clause, the following income accruing or arising to a Sikkimese individual is exempt from tax-

(a) income from any source in the State of Sikkim; or

(b) income by way of dividend or interest on securities.For the purposes of the clause, "Sikkimese" has been defined in the Explanation thereto.

2.Income accruing or arising to a non-Sikkimese individual residing in the State of Sikkim continues to be liable to tax under the Act.

In the case of such individuals, it has been decided that-(a) For assessment year 2007-08 or any preceding assessment year, no assessment or reassessment shall be made with regard to the income-

(i) income from any source in the State of Sikkim; or

(ii) income by way of dividend or interest on securities.

(b) In case any proceedings have been initiated for assessment year 2007-08 or any preceding assessment year for not filing the return of income, such proceedings shall be dropped.

(c) In case any assessment or reassessment proceeding has been initiated for assessment year 2007-08 or any preceding assessment year and assessment orders have not been passed, the aforesaid income shall be accepted as per the return.

(d) For the assessment year 2008-09 and subsequent assessment years, assessment or re-assessment, if required, shall be made in accordance with the provisions of the Income Tax Act, 1961.

3. These instructions shall apply only to non-Sikkimese individuals residing in the State of Sikkim.

F.No.153/19/2007-TPL


Vandana Ramachandran) Under Secretary to the Govt. of India

CONFUSION OVER INCOME TAX IN SIKKIM

Confusions reigns as income tax payers go through teething problems

Staff Reporter
(Sikkim Express)

GANGTOK, August 07: Barely a day after the new Income Tax Office in the State was inaugurated, taxpayers here seem to be a confused lot.

Most of the people are in a dilemma over the circular issued by the Central Board of Direct Taxes under the Ministry of Finance, Government of India dated July 29, 2008, which has clarified the position and the mechanism of Central Direct Taxes in Sikkim.

The people who comes under the purview of the Central direct taxes said that they are confused with the section 2 (d) of the circular which mentions ‘for the assessment year 2008-09 and subsequent assessment years, assessment or re-assessment, if required, shall be made in accordance with the provision of the income tax Act, 1961 which means for the financial year 2007-08. In simpler terms, the people have to file their income tax return for the financial year 2007-08 as per the notification.

Members of the business community and government employees in Sikkim, who have already paid taxes under State Income Tax Manual, 1948 are worried that they might have to go for double taxation.

“How can we be double taxed because we have already paid our taxes under State Income Tax Manual till June 16, 2008. There is no questions of double taxing,” one of the businessmen told SIKKIM EXPRESS requesting anonymity.

“We were of the notion that the Central Direct taxes would come into be effect from April 1, 2008 retrospectively which means the year of assessment would be 2009- 2010 and the financial year would be 2008-2009.

However, the major lacuna for the businesspersons here is the unavailability of the book of accounts, which they failed to maintain.

“The matter of paying Income Tax came in effect only after the budget session which was held earlier this year and till that time we were totally unaware to maintain our book of accounts,” added another person.

While Speaking with SIKKIM EXPRESS over the phone, Bonani Ghosh, the Commissioner of Income Tax Department, Government of India told that the matter has been taken up seriously and that she would appraise the matter with the Chief Commissioner in Kolkata. “The Chief Commissioner will forward the letter to the Central Board of Direct taxes seeking clear idea about the notification,” she added.

Meanwhile, the Chief Minister Pawan Chamling has been regularly stating that an effort would be made to follow the Ladakh Model, through which even the people without Sikkim Subjects especially the business communities would be exempted in paying the Central Direct taxes.

QUOTE

India, poised for taking big leaps in the 21st century, cannot be seen to be at war with itself
- Tribune

OVERSEAS INDIANS

Three lakhs granted Overseas Citizen status USA leads with over 1,20,000 overseas citizens of India



The number of India's Overseas Citizens is about to touch the three lakh figure. The grant of such status to these many overseas Indians has taken place within less than three years time. Overseas Citizenship of India (OCI) facilitates life-long visa-free travel to India and certain economic, educational and cultural benefits.

The exact number of people granted overseas citizenship status till 31st July 2008 is 2, 85,611. Out of them, over 1, 20,000 are from the United States. Other countries where sizeable numbers have been given overseas citizenship of India are UK, Canada and Australia and Sri Lanka.

The scheme came in to operation from December 2, 2005 in response to a long and persistent demand for "dual citizenship" particularly from overseas Indians in North America and the western world. The decision was also based on the Government's deep commitment towards fulfilling the aspirations and expectations of Overseas Indians. Any Overseas Indian applicant who is comfortable with his present citizenship status in the country of his residence can apply for OCI. The OCI is not to be construed as 'dual citizenship' since it does not confer political rights.

Prime Minister Dr. Manmohan Singh had announced at the Pravasi Bharatiya Divas 2005 held in Mumbai the grant of Overseas Citizenship of India to all Persons of Indian Origin where local laws permit "dual citizenship" in some form or the other except Pakistan and Bangladesh.

India has the second largest Diaspora in the world. The overseas Indian community estimated at over 25 million is spread across every major region in the world. It constitutes a diverse, heterogeneous and eclectic global community representing different regions, languages, cultures and faiths. The common thread that binds them together is the idea of India and its intrinsic values. Overseas Indians comprise People of Indian Origin (PIO) and Non Resident Indians (NRI) and today are amongst the best educated and successful communities in the world. In every part of the world the overseas Indian community is recognised and respected for its hard work, discipline, non-interference and for successfully integrating with the local community. Overseas Indians have made significant contributions to the economy of the country of residence and have added in considerable measure to knowledge and innovation.

The Ministry of Overseas Affairs has taken up the Mission to promote, nurture and sustain a mutually beneficial and symbolic relationship between Indians and Overseas Indians. The Ministry seeks to offer customized solutions to meet the varied expectations of the overseas Indian community and lends a strategic dimension to India's engagement with the Diaspora. The expanding number of overseas Indian citizens is part of the government's efforts in this direction.

Thursday, August 7, 2008

INCOME TAX OFFICE IN SIKKIM

Gangtok, Aug. 6: Sikkim today formally came under the purview of the central income tax act with the opening of the first income tax office here this afternoon.

Initially, around 10 per cent of the state’s total population of 5.4 lakh will come under the assessment of the tax. However, Sikkim Subject Domicile and holders of Certificate of Identification are exempt from paying the tax.

Bonani Ghosh, the commissioner of the income tax department (north Bengal and Sikkim), said after the inauguration of the new office: “The assessment year will be 2008-2009. This has already been agreed upon between the state and the Centre.”

Assistant commissioner A.K. Pramanik of the Siliguri office will also oversee the Sikkim operations through four employees posted at Gangtok. The new office is housed in a government quarters above Bhanupath on the way to the secretariat.

Pankaj Saxena, the general manager of a hotel here, was the first to file his individual return. His chartered accountant handed over the details of his income to the commissioner.

“I appeal to all members of the business community and the state government to make this a smooth operation,” the commissioner said.

A series of workshops will be conducted by the office soon to answer the queries of those who will now have to pay the Central Income Tax.

The Income Tax Act of 1961 had been extended to the state in 1989 but had not been enforced because of stiff opposition from residents, who felt it would overrule the old laws of Sikkim protected under Article 371 (f) of the Constitution.
( Source: The Telegraph)

Wednesday, August 6, 2008

TRANSMISSION SYSTEM FOR SIKKIM'S 1200 MW POWER

Power Grid Corporation of India Ltd. (POWERGRID) has entered into a Shareholder’s Agreement with Teesta Urja Ltd to form a Joint Venture Company named “Teestavalley Power Transmission Limited”. The Company will develop associated transmission system for evacuation of power from 1200 MW Teesta-III Hydro Electric Project (HEP) being developed in Sikkim by Teesta Urja Ltd. The project, to be built at an estimated cost of Rs. 708 crore, comprises of construction of (i) 400 kV D/C Teesta – Mangan Transmission line (Approx. length 10 kms) and (ii) 400 kV D/C Mangan-Kishanganj Transmission Line (Approx. length 180 kms). The project is scheduled for completion by September, 2011. POWERGRID and Teesta Urja will have 26% and 74% stake respectively in the Joint Venture Company. The agreement was signed by Shri V.M. Kaul, Executive Director (PI & BDD) on behalf of POWERGRID and by Shri Y.N. Apparao, Managing Director on behalf of Teesta Urja Ltd. in the presence of Shri S. K. Chaturvedi, CMD, POWERGRID and other senior officers of POWERGRID, Teesta Urja Ltd. and Teestavalley Power Transmission Ltd. The JV Board will be chaired by CMD, POWERGRID. The project would be built up on Build, Own & Operate (BOO) basis and will also provide transmission capacity upto Kishanganj S/S of POWERGRID to various private HEPs being developed in North Sikkim. The project would be built on 70:30 Debt Equity Ratio. This Project will be an important part of the common transmission system for evacuation of more than 3000 MW generation from large number of upcoming HEPs in Sikkim to supply the power to the beneficiaries of Northern and Western regions.
( pib)

LABOUR LAWS IN INDIA

The Union Minister of Labour and Employment Shri Oscar Fernandes has said that the labour laws should be made relief oriented and workers friendly. He has said that interest of unorganized sector should be safeguarded at any cost as 94 per cent of the total workforce is employed in this sector only. Inaugurating the All India Conference of the Chief Labour Commissioners and the Regional Labour Commissioners here today, Shri Fernandes said that the Labour Commissioners should undertake special crash programme to ensure payment of minimum wages and these efforts should lead to tangible relief to workers. He also announced that the Central Government would issue notification for the minimum wages in respect of employment of sweeping, cleaning and watch and ward also very shortly. He expressed the hope that sizeable number of workers engaged in these two employments would have a sigh of relief with this initiative.Asserting on high level of compliance of the labour standards, Shri Fernandes said that it cannot be ensured by launching prosecutions only. Efforts should be made to get the irregularities rectified by educating and persuading the employers. He advised the officers that they should not restrict themselves only to their conventional and traditional role but also play a pro-active role as facilitator, advisor and guide to the employers, unions and workers so that there is a willing and voluntary compliance with the provisions of labour laws by the employers and at the same time the workers are made aware of their duties and responsibilities. The Minister said that in the present scenario of globalisation no economy can function in isolation. A number of changes are taking place which are affecting the industries and the workers alike. This, in fact, is the crucial phase of re-adjustment where our energy, resources and tact will be tested to the maximum. Hence there is need to adapt the changes accordingly and make the labour administration more effective. Appreciating efforts in achieving settlement in some of the recent industrial disputes, Shri Fernandes said that settlement in Neyveli Lignite Corporation which ensured a significant pay hike for over 13,000 contract labour and other benefits, should be taken as a model. The agenda for two days conference include settlement of industrial disputes, enforcement of labour laws, implementation of awards and issues related welfare of the workers. The Conference is being attended by the chief Labour Commissioners and Regional Labour Commissioners of the country.

HYDEL PROJECTS IN SIKKIM

August 06, 2008
Sikkim government to review decision to scrap hydel projects

Project Today reported that Sikkim government has decided to review its decision to scrap 11
hydel projects in a bid to modify the private developers one of whom has moved the Sikkim High Court challenging termination of its project in East district.It is learnt that the state government had been rattled by the private developers' threat to take the matter of termination of the projects to the court for adjudication and so decided to return the scrapped projects to the individual developers for execution.One of the developers Madhya Bharat Power Corporation Ltd, whose project at Rongnichu in East district was among the projects terminated by the state government in July 2008, has filed a petition in the Sikkim High Court challenging the scrapping of the project.

Tuesday, August 5, 2008

SUBSIDISED PALMOLIEN FOR SIKKIM

The Centre has allocated 93,400 tonne edible oil per month to 24 States/UTs for distribution through the public distribution system. Edible oil importing public sector undertakings have been given the responsibility to supply the allocated edible oils to the States as given below:

State Through PSU Type of oil per month allocation
Sikkim MMTC RBD Palmolein 150 MT per Month

Under the Scheme of Distribution of Subsidised Imported Edible Oils to States/UTs started last month. The Scheme was formally launched by Agriculture and Food Minister Shri Sharad Pawar in Hyderabad on 28th July.

At the end of July, these PSUs have contracted 2,59,950 tonnes of edible oils, out of which 1,35,395 tonnes have landed on Indian ports. 39,196 tonnes have been packed in pouches and 37,000 tonnes have been handed over to various States as per their demand.

RADIO MISTI & RADIO NETHERLAND

Entertainment
Netherlands public broadcaster ties up with Radio Misty

Siliguri : Radio Netherlands Worldwide (RNW) has established a partnership with Radio Misti, the first FM station in North Bengal and Sikkim, at a function here on Monday.
Amitabh Srivastava, the RNW country manager for India told a press conference that RNW, having over 3000 global partners, would offer music programmes ranging from European pop charts to classical, Jazz and world music besides.
The RNW, he said, was interested to work in India considering the rapid growth of FM stations and multimedia platforms in the country.
The RNW would provide Radio Misty with programmes involving discussions on a variety of issues. It would also broadcast Radio Misty programmes to the global audience, he said.
Radio Misty 94.3 FM chief executive officer, Nishant Mittal, in his address said that, Radio Misty was proud to be the first RNW partner in India.
The partnership, he hoped, would bring a lot of innovative programmes to the people of North Bengal and Sikkim.

Sunday, August 3, 2008

MARKETS OF SIKKIM

EAST
Bazar Class - I
Gangtok, Singtam.

Bazar Class - II
Rangpo, Ranipool, Pakyong, Rhenock, Tadong, Rongli.

Bazar Class - III
Dikchu (E), Makha, Sang, Rorathang.

Rural Marketing Centres:
Phadamchen, Kupup, Sherathang, Chandmari, Rongyek, Burtuk
Bhojoghari, Samdong, Ranka, Central Pendam, Martam, Saramsa.
Simik - Linzey, Tintek, Lingdong, Chandey Kyangasla, Theguk,
Lingtuk, Jaluk, Sisney, Barapathing, Mamring, Machong, Chalisey
(Rhenock), Reshi (E), East Pendam, Kopchey, Dalapchand, Aritar,
Chujachen, Rolep, Parakha, Penlong, Lingdok, Lingtam, Rumtek,
Middle Camp, Lower Samdong, Duga, Tsongu, Sirwani, Syari,
Tathangchen.

NORTH
Bazar Class - II
Mangan, Chungthang, Dikchu (N), Phensong, Phodong.

Rural Marketing Centres:
Pakyong, Kabi, Namok, Ramthang, Singhik, Pakshep, Manuel,
Naga, Sangkalang, Hee-Gyathang, Pashingdang, Phodong, Tumlong,
Phamtam, Bakcha, Lachen, Lachung, Lingzya, Tingbong.

SOUTH
Bazar Class - II
Jorethang, Namchi, Melli, Ravongla.

Bazar Class - III
Simchuthang (Mangley), Majhitar, Temi Bazar, Damthang, Namthang
Kewzing, Yangyang, Ralang.

Rural Marketing Centres:
Nandugoan, Tenzor, Maniram Bhanjyang, Phughajyang, Rateypaney,
Tokal Bermoik, "O" Tarku, Ben Bazar, Sadam, Melli Dara, Payong,
Sukrabarey (Sadam), Sumbuk, Turuk, Kitam, Wok, Lingmoo, Lingi-
Payong, Namphok, Manpur, Gumpa Ghurpisey.

WEST
Bazar Class - II
Gyalshing

Bazar Class - III
Leghsip, Reshi, Hee, Sombaria, Soreng, Daramdin, Dentam,
Rinchenpong, Kaluk, Mangalbarey, Shreebadam, Barmiok,
Pelling, Tashiding, Chakung, Nayabazar.

Rural Marketing Centres:
Darap, Rimbi, Gerethang, Melli-Khechepery, Sakyong, Chongrang,
Lingchom, Tashiding, Cheyabhanjyang, Timburbong, Dodak, Zoom
Ribdi, Okhrey, Bhareng Hilley, Budang, Tharpu, Pureytar, Thingling,
Begha, Rothak, Yuksom, Uttarey.