State asks for hill sales tax dues - Traders told to pay Rs 20 crore by June 30

Darjeeling, May 10: The state government has asked all hill traders to clear their sales tax dues of around Rs 20 crore accumulated during the non-cooperation movement between April 2008 and July 2011 by next month. The order was in accordance with a recent amendment to the West Bengal Finance Act . The Gorkha Janmukti Morcha had asked the hill residents not to pay any central or state taxes and bills from April 1, 2008 till July 2011 as part of its non-co-operation movement during the statehood agitation. The hill residents started filing their sales tax returns from July 2011 after Bimal Gurung’s party signed the GTA agreement. Electricity bills worth Rs 72 crore, telephone bills of Rs 10 crore and sales taxes amounting to around Rs 20 crore had accumulated during the non-cooperation period. Recently, the state amended the West Bengal Finance Act (published in the Calcutta Gazette on March 26, 2013) and inserted sections 32 and 33 that state traders will have to pay sales tax dues by June 30, 2013 and the government will not levy any interest or charge late fee on the amount. Those who have already paid the taxes during the agitation period will not get a refund of their interest or late fee. Section 32 states: “Dealers in principal place of business in the sub-divisions of Darjeeling, Kurseong and Kalimpong in the Darjeeling districts, required to furnish their returns under sub-section (1), has not furnished returns for the period commencing from the 1st day of April, 2008 and ending on the 30th day of June 2011, such dealer shall furnish returns for such period on or before the 30th day of June 2013 and shall pay full amount of net tax without payment of interest and late fee for such period: Provided also that no refund of interest and late fee shall be made, if any dealer mentioned in the foregoing proviso has already paid the amount of interest or late fee pertaining to the period mentioned in such proviso (sic).” Reacting to the order, a hill trader said: “It was the Morcha that told us not to pay taxes. We were afraid that we would be targeted if we paid. Now the onus is on the Morcha to take up the issue with the government.” Another businessman said it was impossible to pay the dues for three years within a month. “We have started receiving notice from the office of the joint commissioner (commercial taxes). Things would have been better if there was some provision to clear the bill in instalments,” he said. The sales tax percentage differs according to the type of goods and the rate every year. “During 2008-2011, sale taxes were levied at the rate of one per cent for gold items and four per cent for garments. There is a list for all the items traded,” said an official of the commercial tax department. Defaulters of sales tax returns, which are filed quarterly, have to pay an interest of one per cent for each month’s delay on the taxable amount. “During 2008-2011, a trader who sold products worth more than Rs 10,000 per month is (also supposed) to pay a (late) fine of Rs 2,000 for the first month followed by Rs 500 every month. Those whose transaction was less than Rs 10,000 have to pay a (late) fine of Rs 500 for the first month followed by Rs 200 for every month,” said tax department official. According to the recent the amendment, the state, however, will not charge the interest or the late fine. B.M. Garg, president of the Darjeeling Chamber of Commerce said: “We have apprised the Morcha leadership of the problem.” The party, however, today said it would oppose any move to collect the dues accrued during the agitation period. Morcha general secretary Roshan Giri said: “There is no question of paying any tax (that accumulated) during the non-co-operation movement. We will take up the matter with the chief minister during her visit to Darjeeling next week.” The chief minister is scheduled to visit the hills on May 14. On June 9, Mamata had said in Calcutta: “The business community could not pay taxes when the movement was on. We have waived it. Once Darjeeling is free from trouble, business and development will reach the hills.” Observers said the state’s move to levy taxes could strain the Morcha-government relation, which has just improved.