Mrinal Chakrabortty

AVERT DRAINAGE OF OIL TAX REVENUE IN ASSAM

2011-10-29T23:46:00.000-07:00

The mineral oil of Assam is contributing substantial amount of tax revenue to the State Exchequer. This is derived from crude oil, extracted from the oil fields of Assam. The crude oil- potentiality was there since centuries back, but no efforts or endeavour were there to unearth the said potential resources. After fall of the Ahom regime, the British Raj started its reign in this territory, consequent upon execution of Yandabu Treaty with the Mans in 1826 A.D. The British Raj had full conviction in mind that the soil of Assam bears acute potentiality in the field of agriculture, forest and mineral resources and there was ample scope for acceleration of economy.

The tea plants were discovered in abundance in the forest areas of Upper Assam. There was strong hunt to unveil such potential resources in other nearby areas. They started wide range of expedition giving priority to undivided Sivasagar and Lakshimpur districts. When achieved, this was extended to the western and southern part of the State. Gradually, they installed factories, adjacent to the tea garden areas and started commercial production keeping in mind to make growth of economy. The quality of Assam tea was excellent. Consequently, the Assam tea occupied a prominent place in the global market. The flow of income was by leap and bounds. There was no measure of tax on the sale or purchase of tea at the early stage. The same was introduced from the 24^th December, 1947, when the Sales Tax Law came into operation in the State. Of course, a tax law on income of agriculture was introduced from the 1^st April, 1939, which till now remains operative.

The British Raj equally felt that there was potentiality of mineral oil in the soil of Assam. The casual flame of fire was visible in soils, from time to time. A drilling operation was started in the year 1867. Ultimately, it yielded a positive result and for the first time in the history of Asian continent, crude oil field was discovered in Digboi area of the present Tinsukia district in the year 1889 A.D. Steps were taken to establish a mini oil refinery at Digboi and it was commissioned in 1901. Gradually, some more oil fields were discovered in and around Digboi including the Makum area. It is worthy to mention that this refinery used to feed fuel to the military convoy on its way to the war field in Burma area (now Myanmar), when Word War II was in full swing.

In the middle part of twentieth century, a good numbers of oil fields were discovered in a number of places in Sivasagar and Dibrugarh districts. The Government of India (Central Government) instead of installing a big-sized refinery in Assam, planned to pump out such crude oil to the Barauni Oil Refinery of Bihar. Naturally, a great irritation cropped up in the minds of the people Assam and they started agitation protesting against such odds depriving the people of Assam to get the legitimate benefit on the State resources. The decision of the Central Government was to give cognizance to the accrued anger of the people and pacify them by installing another medium sized refinery in Noonmati area in the heart of Guwahati city was an act of betrayal in as much as the Central Government simultaneously took decision to pump out a major quantity of such extracted crude oil to Barauni Refinery of Bihar. The Barauni refinery at earlier stage did not pay tax on such inter-State sales of crude oil to the State of Assam and challenged any act of levy. Fortunately, the Supreme Court of India (Apex court) delivered a historical judgment affirming the claim of the Government of Assam in getting its lawful revenue on such sales. Thereafter, during the regime of Mrs. Indira Gandhi, piloting the Indian Government, a refinery was installed at Dhaligaon of Bongaigaon to be fed by the crude oils, extracted from the soil of Assam. A big-sized oil refinery was as well installed at Numaligarh of Golaghat district, which is a product of six years’ long Assam movement on the foreigners’ issue at the behest of the All Assam Students Union (AASU), associated by many other like mined political and non-political organizations..

The Legislatures of Assam incorporated the item ‘crude oil’ in the tax schedule of the Assam Entry Tax Act, 2001(Entry Act) from the 4^th October, 2004 making way to levy tax vis-à-vis to augment the State revenue of the State in respect of import of such goods from places out side the State of Assam to a local area in Assam as well as in respect of such import from one local area to another local area within the State of Assam. As a consequence, barring the Digboi refinery, all other refineries were roped in the tax net of the Entry Act. The Entry Act of 2001 met with a serious challenge and the Gauhati High Court declared the said Act as unconstitutional and held to be void. However, the said Act was reintroduced from 1^st June, 2008 with a retrospective effect and validated the tax levy and realization including the tax to be realized in the interim period of non-existence and non-operation of any EntryAct. The matter is reported to be under sub-judice of the Apex Court.

Parliament introduced a provision in the Central Act in 1972, whereby any dispatch of taxable goods to places out side the State not by reasons of sales, but by way of stock transfer has been made admissible for exemption of tax under the said Act. Previously, such exemption of tax was conventional, but now it was legalized. As a matter of fact, such exemption of tax has a constitutional sanction in as much as sub-clause (a) of clause (1) of Article 286 of the Constitution restricted the State any levy of tax on the goods, so moved and sold out of the State. The provisions of Central Act, however, strictly laid down conditions that- (i) for such exemption, the burden of proof rested with the dealer, claiming such stock transfer vis-à-vis exemption of tax; (ii) the documents and evidences of dispatch and sales are to be produced; (iii) a declaration in Form ‘F,’ containing, the dispatch particulars, transfer invoices, value of the goods, so moved; (iv) the exemption of tax is not automatic and it is subject to enquiry by the competent taxing authority, allowing such exemption. As a part of inquiry, the said authority may insist on the compliance of the requirements, as laid down in sub-rule (4) of Rule 4 of the Central (Assam) Rules, 1957. Another, note worthy point, which is to be taken into consideration is that an ‘agreement’ in regard to such stock transfer and ‘sale’ out of the State and the ‘sale notes’ confirming, inter-alia, payment of tax in the respective State, as ought to have received by the transferor of the goods, is to be produced.

Form ‘F’ clearly specified that such movement of goods on stock transfer should be made by road transport, railway, steamer, air or post office and not other wise and furnishing the dispatch particulars in the said form viz consignment notes & dates etc. has been made imperative.

It has, of late, come to the light that some Oil refineries of Assam have been making the transfer of stock of ‘petrol’ and ‘diesel’ through pipe lines installed by them. This is a unilateral arrangement and the ball of such stock transfer remained at the court of such refinery. No organization for movement of such oil products was involved in the scenario. The taxing authorities might have entertained such claims of exemption. Whether such episode of stock transfer through pipe lines, has really any legal base? In such self-designed exercise, it is apprehended that the drainage of crore of State revenue has become obvious. A coparative study of the Central tax revenue collection for last three or four years may unveil the actual position.

We hope, this discussion will receive attention of the Government of India to find out a suitable remedy.

TAX ON INCOME

2011-10-29T23:44:00.000-07:00

‘Tax’ means ‘the money that is to be paid to the State; charged as a proportion of personal income and business profits or added to cost of some goods and services’ ‘ Income’ means ‘a money received during a certain period for work or from investment.’ “Agriculture’, on the other hand, means ‘a science or practice of farming.’ ‘Tax on income’ is thus money to be paid on the profits earned by any person or organization for works or investment, while; ‘Tax on agricultural income’ is ‘the money that is to be paid on profit earned on the practice of farming.’

‘Tax on income’ is a subject, administered by the Government of India (Central Govt.) through the machineries at its disposal. Article 246(1) of the Constitution of India (Constitution) empowered Parliament to make enactment of laws on the subjects, specified in the Seventh Schedule- List I (Union List). ‘Tax on income other than agricultural income’, as occurred in entry 82 of the said Schedule is thus a tax to be levied by the Central Government for the purpose of augmentation of the Central revenue. In fact, the measure of tax on income in India was introduced in British Parliament long back in 1860 to bear the economic burden on account of armed revolution of the First War of Independence against the British regime. The reasonableness of such measure of income tax adopted, were assigned as : it is a (i) canon of ability for paying such tax; (ii) canon of certainty; (iii) canon of convenience and (iv)canon of economy. There was, however, no such tax from 1865-67 due to cropping up acute public murmuring. The Income Tax Act, 1886 was brought out to build- up licence tax. The Income Tax Act, adopted in 1922 ( IT Act)continued to be operative in post independent period too. After the Constitution took birth on January, 26^th, 1950, the said law continued to be operative with the safe guard provided in Article 277 (Savings clause) of the Constitution. The Income Tax Act was remodeled and it was passed in the House of Parliament in September, 1961 and the Indian Income Tax Act, 1961 (Income Act) thus came into effect in continuation of the previous one. It is, in fact, a tax only on income, profits or gains and not on the capital, whether original, substituted or increased. The salient features are, therefore, - (i) income tax is only a charge on income and not the capital; (ii) the method of charging tax on income and capital gains is different; (iii) in computing the taxable income of a business, profession or vocation, only the revenue expenditure and not the capital expenditure is deducted from the trading profits.

‘Tax on agricultural income’, is a subject, administered by the State Governments through the tax machineries of the State. In 1925 the Indian Taxation Enquiry Commission opined the justification of creating a measure of tax on agricultural income, but the same was not readily materialized due some obvious difficulties. The Government of India Act, 1935 as well incorporated an entry No. 41 in the Seventh Schedule of Provincial Legislative List to facilitate introduction of tax measure on ‘agricultural income’. The measure of tax on agricultural income was thus introduced, which had the consequential effect that “The Assam Agricultural Income Tax Act, 1939” (Agricultural Act) was enacted by the then provincial Legislatures of Assam and the said Act became operative from the 1^st April, 1939. After India attained the dignity of a Democratic, Republic Nation on the 26^th January, 1950, the entry No. 46 incorporated in the Seventh Schedule of the Constitution provided power to the Legislatures of the State to enact law on the ‘Taxes on agricultural income tax’. As a matter of fact, the 1939 Act was already operative and it continued to be operative by virtue of the said provision read with Article 277 of the Constitution. It is worthy to mention that within this long spell of 70 years, a number of amendments of the Act took place in consideration of the administrative needs in the interest of public service..

‘Tax on income’, as defined in clause (29) of Article 366 of the Constitution ‘includes a tax on the nature of an excess profits tax’, ‘ Agricultural income’ as defined in clause (1) of the said Article means ‘agricultural income, as defined for the purpose of the enactments relating to Indian income tax.’ The Constitution thus maintained silence so as to provide independent and categorical definition on the term ‘agricultural income’, implying thereby that, it is dependent on the Income Tax Act. The definition in the Income Tax Act, inter-alia, laid down that ‘the income that is derived from the land of agriculture’. The tax on income and the tax on agricultural income are levied on the income derived in the previous year, subject to deduction of the amount, admissible under the relevant Acts out of the total quantum of income derived.

Though the main purpose of the agricultural Act is that, it is a tax on agricultural income, but a unique deviation has been made in the matter of determination of the quantum of the agricultural income of tea. The Income derived from tea is to be bifurcated into two. That is on income of agricultural activities and that of on trade activities. The ratio thereof was specified as 60 : 40- that is, 60 percent on agricultural income and 40 percent on trade income. This principle is exclusively maintained in case of the income of the agricultural product ‘tea’ only and not on other products like paddy, pulses, wheat, sugar- cane etc. where also simultaneously the question of both agricultural and trading activities are involved. There are good numbers of tea gardens in Assam exceeding 45, 000 in numbers with 700 to 800 numbers of industrial establishments. The former produces green tea laves, while the latter finished products, the black tea. In fact, the green tea tea leaves are sold to the industrial establishments, while the black tea in the State or out of the State in the course of inter-State trade or commerce.

The sales of green tea leaves are exempted from tax under the Assam Value Added Tax Act, 2003 (VAT Act) vide entry No. 41 in the First Schedule. The quantitative production of green tea, on the other hand, is taken into account for the purpose of levy of tax on tea garden lands, with the measuring scale of production of green tea leaves in smaller tea gardens, It is note worthy to state in the connection that the Legislatures of Assam incorporated the following provisions in the Assam Taxation On Specified Lands Act, 1990 (SPL Act)with effect from the 12^th day of February, 2009

“Section 6A- Every person engaged in manufacture of tea and responsible for making any payment or discharging any liability on account of any amount purported to be the full or any part payment of sale price or consideration of purchase of green tea leaf, shall, at the time of credit to the account of or payment to the seller of such amount in cash, by cheque, by adjustment or in any manner, whatsoever, deduct tax calculated at the rate of 20 paise per kilogram and deposit the same in the State Exchequer in the same manner, as may be prescribed.” [The rate of tax was enhanced at 25 paise per Kilogram with effect from the 29^th April, 2010”]

This apparently reflect that a tax is to be payable in a direct or indirect way on the sale or purchase of green tea leaves not on advelorem basis, but on weight basis, though, in fact, the VAT Act clearly restricted it.

The measure of tax, adopted in this behalf seems to be out side the scope of the VAT law in as much as the sales and purchase of green tea leaves are exempted from sales tax in Assam. The restriction to levy of 100% tax on the income of tea, therefore, obviously created an acute set-back in the revenue generation exercise of the State in as much as 40% of tax on such income is poured to the Central Coffer in the name of income on trade activities. In fact, tea industry is one of the few limited industries of Assam. Hence, a rethinking is necessary to maintain disparity in respect of other agricultural products to restore the fiscal equilibrium. The State Government may initiate dialogue with the Central Government on this issue, if considered necessary.

The Agricultural Act continued to be operative for long 72 years provided ample power to the said tax authorities to administer the Act including the levy of tax and other allied matters. Over the head of such vested quasi-judicial power, the exclusive power of determination of the quantum of total income and bifurcation thereof for agricultural income by the income tax authorities, is obviously a double standard vision in the power exercise scenario of the Agricultural Act. It is, no doubt, an irrational and a pre-judicious projection in the matter of levy of tax on agricultural income. Rule 5 framed under the said Act provided some discretionary power to the State taxing authority for scrutiny and examination on such determination and bifurcation in such cases, when circumstances warranted so. The Supreme Court of India, however, quashed the validity of the said State rule. The State tax authorities are thus to remain cipher and to act like rubber stamps on the unitary decision of the central authorities. The quasi-judicial aspect in the agricultural Act has been nullified thereby.

The Head Offices of limited numbers of industries, like tea industries, oil industries, coal industries, jute merchants etc.of Assam are mostly located at places out side the State of Assam. The taxes on income are generally deposited by such industrial entrepreneurs in the income tax territorial jurisdiction of such Head Offices. The concerned States in which such tax income tax revenue deposits use to get share of income tax, as envisaged in Article 270(2) of the Constitution. Assam is thus deprived of such benefit even though the base of production, manufacturing and trade activities fall within the territorial jurisdiction of Assam.

The sensitive sons of the soil of Assam, therefore, urge upon the Government of Assam to consider all this vital aspects and play a pivotal role for its suitable solution at this stage keeping in mind that a spark neglected may burn the house.

AVERT RAMPANT CORRUPTION IN ASSAM CHECK POSTS

2011-06-21T07:06:00.000-07:00

When a section of renowned and august personalities of the Indian sub-continent are on the heels to uproot corruption and are conspicuously vociferous against the social evils and impropriety, the continuance of the marathon flow of rampant corruption in the border check posts of Assam has posed to be an acute threat to the sound and healthy economy in the field of revenue generation of Assam. The trend of corruption in encouraging and accelerating the revenue drainage of the State is, undoubtedly, the social and economic crime and obviously attracts coercive measures. The border check posts of Assam were established since 1971-72 with a view to arrest the tax evasion and thereby to augment the State revenue. The check posts of the other departments, like transport, forest, excise and P.W.D. are also simultaneously functioning in a composite manner or with independent entity, having the aim and object to ensure proper revenue generation of the State. There seems to be, of late, a dearth of sincerity and lack of good will in such noble mission. The revenue generation is always incremental and certain factors are involved in such high revenue rise year after year., When, on the contrary, any acute lapse in such ardent exercise is visible for any negligence of duty or connivance of the tax machinery or collusion with the traders, it tantamount to be a deep cause of agony and a shadow of darkness surrounds the prospective dazzling revenue scenario.
Contrary to the original aims and objects, an unhealthy happening has been coming in sight through the screen of the publicity and the flushing of the news media. A sensitive citizen has the reasons to be ashamed, when a truck driver makes the innocent open expression that while coming across the other Border States, like Bihar and West Bengal etc. without any element of black money, they are victimized with illegal and unreasonable demands for such black money, while entering into the State of Assam. The earning of black money at the cost of the State Government revenue is, no doubt, very unfortunate and it is offensive and quite detrimental to the public interest.
It is appreciated that adequate measures have been taken by the taxing authorities to ensure revenue collection by way of mobilization of inner records through hi-tech exercises, but ,in fact, this is a theoretical approach and an effort to unveil the position of hide out revenue and to make recovery thereof from deep slumber under the cover of the records. The ardent necessity, what is felt, is to check and arrest the unaccounted inflow of goods and to discourage the consequential tax dodging activities on the sales. Such an endeavour seems to be legging far behind at these instant hours.
The check posts are the watch dogs to curb and arrest the evasion of tax revenue at the source, but there is no ‘Weigh bridge’ installed at the check posts primarily to ascertain the actual weight of the goods carried, which aptly differs with the covering Challan manifests in many cases. There is no broad platform in the check posts with proper and suitable man-power to unload the goods and to get proper account on the qualitative weight and value thereof. In many cases, such illegal carriage of goods uses to move scot free. The affairs of the check posts presently continues with the go as it is practice with broad-based British Ex-Premier Walford’s vision “Let the sleeping dog lie.” In last part of the 20th century and first part of this century, continuous raids to inspect, examine and to detect the tax dodging activities at the places of businesses of traders, godowns and warehouses gained the momentum and a substantial yield of revenue achieved as well. The transporters being the co-partners of such of such mal-activities, playing the pivotal role in such tax dodging episode, were, as well, not spared. There was, no doubt, high handedness in such raid exercises indulging personal gain under the shadow of some so called big banyan tree like personalities. The law of the land was very much there to apprehend such odds. Hence, the Government ought to have accepted it as a challenge and discourage the same in firm hands instead of bidding a good bye to such a fruitful and unhygienic revenue- generated programme.
The issue and utilization of the ‘Delivery Notes’, to make proper accounting of the imported goods, in fact, sometimes prove to be the farce and in practical sense, a parallel unaccounted flow of business runs without any tax liability in many cases. The Transit Passes issued to move the\goods from one State to other through the corridor of Assam amounts, on many occasions, to be a breach of trust in as much as some quantity of such goods hardly moves across the check post and are sold within the State of Assam.
The taxing authorities have been well equipped for administration of the tax laws by virtue of delegation powers, but a break of the continued system for last six decades becomes obvious, as the incumbents responsible for power exercise solely are dependable on the direction and dictation of high ups, exercising the so-called unitary power. The character and quality of quasi-judicial exercise is thus practically getting a crack.
Our concern is that the good name of the taxation department is to be restored and it should not be the subjected to criticism at any level, more particularly, the news or in the publicity media. There needs a profound review on the shortfalls of the functionaries with a designed renovation. The primary duty of the State Government is, therefore, to take note of the deficiency and to initiate action for aversion of rampant corruption at this stage, which has already polluted the healthy atmosphere.

On way to GST regime

2010-10-12T07:51:00.000-07:00

"A march to the Goods and Services Tax Regime"
Shri Mrinal Kanti Chakrabartty, a retired tax officer of the Government of Assam, is now on the heels to publish his 15th book, namely; ‘On way to GST regime’. This book contains a chronological history on the tax measures in Assam since 1939, that is, during the British era. The present taxation laws operative in Assam also got berth in this book. The original Assam sales tax laws were dismantled from time to time and the VAT Law is now operative in Assam since 1st May, 2005. While appreciating the VAT measures in the country, Shri Chakrbartty maintained that the VAT regime has forced the consumers to shoulder a heavy burden of multiplicity tax element in each stage of sale and there had been an unprecedented price hike of the commodities, which tortured them economically. Out of his prolonged experience, he also pointed out some set-backs, faulty ways of action, in legal, practical and technical aspects in the VAT Law, operative in Assam.
According to Shri Chakrabartty, the proposed GST regime will provide fiscal relief to the consumers to a great extent, as there will be no consecutive charge of tax in each sales deal, but only the difference will be reckoned.
This Act will be a conglomeration of Central and State tax measures. A drastic change of the Constitution of India will naturally be necessary for introduction of the consolidated Central and State taxation law.
The new tax law, as Shri Chakrabartty felt, is likely to be enacted by Parliament and the Government of India (Central Government) will be the chief architect of such tax measures. The State Governments are likely to administer the State tax measures under the direction and guidance of the Central Government. He apprehends that, if it practically happens so, the economic sovereignty of the States will likely to be seized. The role of the State Governments in that case will be cipher and the States will be dependable on the Central Government in different aspects.

PROSPECTIVE IMPACT ON THE PROPOSED GST REGIME IN INDIAN SUB-CONTINENT

2010-10-10T07:48:00.000-07:00

Sub-clause (3) of clause 100 read with entry 48 of the Government India Act, 1935 empowered the Provincial Legislatures of the British ruled India to make laws on the specified subjects. In Assam, the first tax laws were enacted 1939 on the sales of petroleum, on agricultural income and on amusement and betting. With the evaluation of time, a series of taxation laws were introduced in the post independent era. At present, as many as eight State tax laws and one Central tax laws are operative in Assam. These tax laws are- (i) on the sales and purchases of goods, the Value Added Tax or VAT, (ii) entry of goods, (iii) professions, trades, callings and employments, (iv) amusement and betting, (v) specified lands, (vi) Luxuries provided in Hotels and Lodging Houses,(vii) agricultural income, (viii) electricity and central sales. The VAT law has been operative in Assam since 1st May, 2005. It is a broad -based tax. The perimeter of the VAT is wide and each State has its own law on VAT.

The Government of India, since some couple of years has been contemplating to introduce a new tax measure in the States of the Indian sub-continent. An ardent exercise is going on to materialize the venture by introducing the Goods & Services Tax (GST). It seems to be a refined form of VAT, but it is intended to make the base more wide multifarious designed. A part from the tax on sales and purchases of goods, a number of tax measures on State and the Union tax are proposed to be merged to give birth to a unified tax law.

GST is not simply VAT plus Service tax, but it seeks a recast and renovation on VAT. GST is a tax on the goods and services with the comprehensive and continuous chain of set-off benefits from producers’ as well as service providers’ level upto the retail sellers, so as to say, the consumers’ level. It is essentially a tax on the value addition at each stage and a supplier at each stage will be eligible for set-off, through a tax credit mechanism. The GST purchased goods and services are available for set-off on the GST to be paid on the supply of the goods and services. The consumers will bear the burden of last tax (GST), charged in the supply chain only. The multiplicity of tax component is not to be occurred, which will have the consequential effect that the price hike burden to the consumers will be lesser. The illustration, given below, will make the position clear-

GST at the manufacturers’ level- (i) purchase value say, Rs. 100.00, (ii) value addition Rs. 30.00,(iii) sale value of the goods and services Rs. 130.00, (iv) tax rate 10 paise in the rupee,(v) GST(out put tax) Rs. 13.00, (vi) input tax credit Rs. 10.00, (vii) net GST (out put tax) Rs. 13.00- (input tax credit) Rs. 10.00= Rs.3.00. Unlike Rs. 13.00 in VAT, out put tax is to be charged at Rs.3.00.
GST at the whole selles’ level -(i) purchase value say, Rs. 130.00, (ii) value addition Rs. 20.00 (iii) sale value of goods and services Rs. 150.00 (iv) tax rate 10 paise in the rupee, (v) GST (out put tax) Rs. 15.00 (vi) input tax credit Rs. 13.00, (vii) net GST (out put tax) Rs. 15.00 –(input tax credit) Rs. 13.00= Rs. 2.00. Unlike Rs. 15.00in VAT, out put tax is to be charged at Rs. 2.00.
GST at the retail sellers’ level- (i) purchase value say, Rs. 150.00, (ii) value addition Rs. 10.00 (iii) sale value of goods and services Rs.10.00, (iii) sale value of goods and services at Rs. 160.00 (iv) tax rate 10 paise in the rupee, (v) GST (out put tax) Rs. 16.00 (vi) input tax credit Rs. 15.00), (vii) Net GST (out put tax) Rs. 16.00 – (input tax credit) Rs. 15.00= e. 1.00. Unlike Rs. 16.00 in VAT, out put tax is to be charged at Re.1.00.

So, unlike VAT regime, the price level is likely to go down and the consumers will be benefitted. The distinction between VAT and GST is that : (a)VAT provides multiplicity of tax at each stage of sale; (b) Payment of sale price on inclusion of the value added tax;
The GST provides that:(a)The difference of tax is payable; (b) A transparent and complete chain of set-off is maintained.

It is likely to widen the coverage of tax base and improve tax compliance. The higher generation of revenue with the lower burden of tax element to the consumers seems to be the moto of the proposed GST regime.

The Central Excise Duty is in fact, leviable at manufacturing point before removal of the goods from the manufacturing spot and such Excise Duty is to be collected and deposited, when the goods are removed from the business premises. The Service Tax is charged on the date of handing over of service or on the date of receipt of payment, whichever is earlier. The VAT, on the other hand, is to be charged at the time of sale of the goods, whether the payment is readily made or there is deferred payment. The GST will ease out such matters. The GST is to be charged on each transact.

The items of taxability in the GST system will be, as below:
(a)on the sale of goods; (b)incorporation of goods in an individual contract; (c)hiring a taxi;(d) hiring equipment; (e)lease of a premises; (f)consultation by a chartered accountant; (g)import & export of the goods; (h)) rendering of any service; an (i)) a transfer of immovable properties etc”. So, its perimeter will be wider.

The GST being chargeable on each transaction, it may also be called as the’ transaction tax’. It is likely to abolish the interpretational problems whether a particular transaction is goods or services; applicability of State or Central levy or applicability of a particular rate, as may arise. So, the GST will have a separate characteristic and its impact will be large and wide.

Unlike the tax laws on the sales or purchases of goods, the levy of tax will not be confined to the moveable properties only. It will extend to the immovable properties as well. For instance-

(i)The lease of premise is nothing but a lease of immovable goods. Actually, the dictionary meaning of the term ‘lease’ is ‘a contract by which one party lets land, property, services etc. to another for a specific time, in return for money. (ii)Levy of duty on premises, that is, on the immovable properties is presently a subject matter of the State revenue department;

Consequently, with the introduction of the GST, any such laws will naturally be irrelevant and will turn to be redundant. The salient features are discussed below:
(i)India is a federal structure of country. The State Governments and the Central Government, apart from other essential ingredients, have been empowered to undertake the economic administration within the frame work of the Constitution, subject to the conditions, restrictions and limitations imposed therein. The GST will have, therefore, mainly two components;
(a) one levied by the Centre; (b) the other levied by the States.
This dual GST model will be implemented through multiple statutes –
(a)CGST for Centre; and (b) SGST for every States.

The basic issues ,like; chargeability, definitions, taxable persons, measure of levy of tax including the voluntary provisions, basis of classification and other allied matters, will be governed by the uniform statutes, as far as practicable.
(ii) Both CGST and SGST would be applicable to all transactions of goods and services except the exempted goods and services, goods, which are to be kept outside the purview of GST. Similar will be the case in respect of the transaction, which is below the quantum limit.
(iii) The taxes paid against the CGST and the SGST are to be credited in two separate accounts. The input credit derived from the CGST is to be utilized for the Central, while likewise the SGST input derived, is to be utilized for the respective States.
(v)Cross utilization of the ITC (Input Tax Credit) between CGST and SGST is not generally permissible.
(vi) The feasible uniform procedure for collection of both CGST and SGST would be prescribed in the respective legislation for the Central and the States.
(vii)The power of administration of the CGST will rest with the Centre, while that of SGST administration with the States.
(viii)Tax return for the relevant period is to be submitted by the tax payers both to the CGST and SGST authorities.
(ix) The tax payers would be allotted a PAN Card, as a tax payer’s identification number. The GST Pan-linked system with a total 13/15 digits to be worked out in consultation with the Income Tax department, will mainly be linked with the Income tax PAN system, facilitating exchange of data and tax payer’s compliance.
(x)Assessment, enforcement, scrutiny and audit would be undertaken by the authorities, which will be engaged for collecting the tax with information sharing between the Centre and the States.

In addition to the above, the deals at the inter-State level will be termed as the Inter-State GST (IGST). The utilization of the inter-State supply of goods and services will be made under the IGST model. The ITC will be from the respective inter-State level.
‘Dual’ means - ‘two fold.’ India is a federal structured country. The Central and the State Governments have been provided with power to rule the country with the division of powers enunciated in the Constitution. In the economic scenario, particularly in relation to the levy and collection of tax, appropriate legislation is to be worked out by Parliament and the State Legislatures, as envisaged in clause (1) of Article 246 read with List I (Union List) and clause (3) of Article 246 read with List II (State List). In addition to the above clause (2) of Article 246 read with List- III (Concurrent List), the power can be exercised by the Union and the States concurrently. The Central and the State Governments are to be empowered to perform their distinctive duties in making enactments in the matter of raising revenue resources vis-a-vis guarding any possible leakage or drainage of revenue. A dual GST is a product of fiscal federalism, keeping in view, the Constitutional requirement.
The basic architecture for subsumation designed in the GST system and l the principle formulated thereof, are-
(i)Taxes or levies to be subsumed should primarily in the nature of indirect taxes, either on the supply of the goods or on the supply of services; (ii) Taxes on levies to be subsumed, should be part of the transaction chain, which commences with the import/manufacture/production of goods or provision of services at one end and the consumption of goods and services on the other; (iii)The subsumation should result in free flow of tax credit in intra-State and inter-State levels; (iv)The taxes levied and the fees, those are specially related to the supply of the goods and services, should not be subsumed under GST; (v)Revenue fairness for both Union and States individually would need to be attempted.
The basic principle of the GST being as such, the Empowered Committee recommended that the following Central Taxes, administered by the Government of India, ab-initio, are to be subsumed under the Goods and Services Tax net;
(a)Central Excise Duty; (b) Additional Excise Duty;(c) The Central Duty levied under the Medicinal and Toiletries; (d) Preparation Act;(e) Service Tax;Additional Customs Duty, commonly known as Countervailng Duty (CVD) (f) Special Additional Duty of Customs- 4% (SAD); (g)Surcharges; and (h)Cesses
Likewise, the following State taxes have been proposed to be incorporated in the GST net:
(a)VAT/Sales tax;(b) Entertainment tax (unless it is levied by the local bodies);(c) Luxury tax; (d)Taxes on lottery, betting and gambling (e) State Cesses and Surcharges in so far as they relate to supply of goods and services; and (f)Entry tax not in lieu of Octroi.
The movement of goods, occurring from one State to another, not by way of sale, but by way of stock transfer for the purpose of sale out side the State or for any manufacturing activities or for other purposes, is restricted from levy of any tax, as laid down in sub-clause (a) of clause (1) of Article 286 of the Constitution. Any levy of tax is, therefore, beyond the ambit and competence of the State Legislatures. The Central Act has exempted tax on the said stock transfer of goods subject to some conditions and restrictions with production of satisfactory evidences. The GST literature has not reflected properly as to the question taxability or otherwise of the goods to be moved from one State to another on stock transfer. However, time will say as to the modus operandi of this tax measure.
The following will be excluded in the GST tax net :
(a) Direct Taxes; (b) Property Taxes; (c) Stamp Duties; (d) Toll Tax; (e) Passenger Tax; (f)Road Tax; (g)Telecom(h) Licence Fee; and 9i)Tax on Electricity.
The Central Government constituted the State Empowered Committee to work out the ways and means, to examine and to prepare a road map on the proposed system of the GST, as done in the case of VAT. T is on the heels to carry out such a heavy responsibility. The Empowered Committee with the concurrence of the Central Government like wise constituted a Joint Working Committee Group with a view to study the models of the GST in the global sphere, if necessary, to provide alternative suggestions, keeping in view India’s fiscal position. The suggestions of the Joint Working Group will include as well the following :
(i)The GST is to be a revenue- fair with sufficient growth of revenue to the Centre and the States. Interest of Special Category, North East States and the Union Territories have to receive due consideration. (II)A study by the group will be necessary in which power of levy, collection and appropriation of revenue by the Centre and State should be categorically mentioned besides providing the manner with the pros and cons of the various identical models. (III)There should not be any double taxation. (IV)The problems faced in the matter of inter-State transactions and revenue loss should have a suitable end. (V)A suitable solution over the question of exempted, non-VAT items, petroleum products and alcohol might be well treated by exclusion from the GST regime. (VI)The trade, industry, agriculture and the consumers’ interest are well guarded and the Central-State relationship is maintained cordially.
. The present multifarious system of tax has practically crippled the economy of the country. A commodity has to suffer various incidence of tax right from the production to reach the consumers’ hands by this way or that. The tax levied in different aspect is approximately about 27.5%. In GST regime, such total incidence of tax is likely to be reduced and to come down within approximate perimeter of 20%. Obviously, a reduction of the quantum of tax levy is expected.

High rate of tax generally paves the way for mounting evasion of taxes. A trader develops the mentality to escape from heavy burden of tax and adopts various fraudulent means to evade taxes. This is long grown phenomenon of the traders if reduced considerably, the trend and tendency of evasion of tax, is likely to be minimised to a considerable extent. However, it can not be said categorically that such a modus- operandi will take a final good-bye. It can, however, be well expected that the revenue generation will be accelerated to a considerable extent.

Globalization of economy is now one of the min themes of the world nations. Any good tax policy aims at social and cultural up-liftment, global economic realities, administrative efficiency, technological development, economic growth, stability, equity, to ensure welfare of the economically weaker and the vulnerable sections of population. GST will cut the cascading effect and thus can benefit not only to the consumers but also to the industry at large.The intentions of the global nations are as well to make out an all round competition at the global levels and it is not necessarily on the regional or country basis. All are eager to adopt common tax system, uniforms and simple, as well a common marketing platform. There is a common thought that the lower rate of tax will yield higher revenue, as the tax dodging episode is likely to be reduced, when there is lesser burden of tax.

The GST law will be an amalgamation of the measure of tax by the State, the Centre and also at the inter-State level. The powers and functions will as well be divisible amongst the three. The respective provisions of law and the power exercise, it is believed, will maintain their own entity. A question naturally crops up whether Parliament will be vested with the power to make enactment of the GST law or the State Legislature will be responsible for enactment of the portion of law relating to the respective States. That is a policy matter and no comment at this stage seems necessary. However, apprehension is there that the States may lose their autonomy and will be forced to be dependent on the centre in all spheres.
The literature on the GST provided an idea that there will be a drastic change in the Central and State tax structure. Such change will only be possible, when bases are prepared in the Constitution. At present the power scenario of the Centre and States are divisible in the Seventh Schedule of the Constitution. If any unified law is enacted, the Constitutional set up will require amendment. An amendment of the Constitution will thus be imperative and the Seventh Schedule of the Constitution (Union List, State List and Concurrent List) will require renovation.

(Mrinal Kanti Chakrabartty)
“Rudra Bhawan”, Radha Govinda Barua Road, 10 Lakhimipth,Guwahati-781-024

The Asam Sahitya Sabha : Bahumukhi Achani Grahan Prahashan Swarup

2010-09-17T20:12:00.000-07:00

‘The Asam Sahitya Sabha : Bahumukhi Achani Grahan Prahashan Swarup’, the article published
in the Janasadhran Newspaper on 17th September 2010 , written by Shri Mrinal Kanti Chakrabartty, is a part-projection of the inner happenings of the Asam Sahitya Sabha, a linguistic, literary and cultural Organization, the largest forum of the North Eastern Region of the Indian sub-continent. Actually, it has been a den of politics and no proper importance has been
given towards the desired aim and object of the Sabha. The lobby system has been getting the
momentum in this linguistic, literary and cultural Organization. The system of election of
the office bearers has gradually become a farce. The actual idealistic literary persons are
not getting berth in this secret forum. The money hunting- activities for personal gain
plays a pivotal role in this august platform and the scandalous activities are coming to the
light from time to time. There is no proper respect to the Sabha Constitution, as has been
projected. The self-designed highhandedness is getting priority, instead of following up
democratic tradition in this great reputed organization.

Here the link http://www.janasadharan.in/1/images/4.jpg

MYSTERIOUS WAY TO EXTRACT TAX ON GREEN TEA LEAVES

2010-07-09T06:42:00.000-07:00

The tea garden lands of Assam have been playing a prominent role in the agricultural, industrial and commercial aspects in the State scenario. The State is blessed with the flow of incoming revenue derived out of tax on sales, tax on agricultural income, tax on specified land, apart from the land revenue, revenue on electricity duty, revenue on professions, trades, employments etc. tax. Though the Assam tea has been facing an acute competition in the global commercial market, the good name of the Assam tea is still being maintained, as a whole.
Some pertinent question in relation to the measures of tax, adopted in Assam has apparently been visible and it is necessary to make an analysis on the same.
Exemption of tax on Green tea leaves
The First Schedule of the VAT Act has specified series of goods, exempted from tax under Section 9 of the VAT Act and hence no tax is leviable on the sales of such goods made within the State of Assam. The sales of such goods made in the course of inter-State trade or commerce are as well to be treated as tax free. Entry 41 of the said Schedule laid -down that ‘Unprocessed green leaves of tea’ is exempted from tax. The ‘Tentative Commodity List of Vatable Goods’, finalized by the Empowered Committee, contained also that ‘Unprocessed green leaves of tea’ is exempted from tax under the VAT Act.
.Concept of Specified Land Act
Clause (3) of Article 246 read with entry 49 of List-II (State List) in the Constitution vested powers to the State Legislature to make law in respect of ‘Tax on Land and Building’. In exercise of the said powers, the Legislatures of Assam enacted the “Assam Taxation (On Specified Lands) Act, 1990” (Lands Act), which came into effect from the 1st January, 1990.
The preamble of the Lands Act laid down that it is a tax imposed on certain categories of land. The levy of such tax is to be made on the annual productivity of such specified lands. The specified lands includes, inter-alia, the tea garden lands and the annual productivity of the green tea leaves on weight (in Kilogram) basis is the measuring scale for the purpose of levy of tax on such tea garden lands.
In the original Act effective from the 1st January, 1990, the rate of tax was fixed at 50 paise per Kilogram. The validity of the Lands Act was challenged by a number of tea gardens and tea organizations before the Gauhati High Court and the Supreme Court of India. During the pendency of the cases, however, a Memorandum of Understanding (MOU) was signed between the Government of Assam and the various tea organizations and the rate of tax was reduced from 50 paise to 18 paise with a retrospective effect from the 1st January, 1990. The Lands Act was amended from time to time and with effect from 31st March, 1997, the tea garden lands, the aggregate area of which did not exceed four hectares, were exempted from payment of such land tax.
The numbers of tea estate in Assam and the production of green tea leaves in such tea estates, as were projected in the Statistical Hand Book of Assam, 2007 are, as below:
Year Nos. Quantity produced (in weight)
2002- 43272 43,33,27,000 Kg.
2003- 43293 43,47,59,000 Kg.
2004- 43296 43,56,49,000 Kg.
2005 - 47,41,37,000 Kg.
The numbers of tea gardens and the productivity of tea thereof must have gone to a much higher side during these long five or six years, which particular is, however, not available readily. The collection of tax under the Lands Act was ascertained from the tax department sources, which is as below :
2002-2003 – Rs. 52.93 crore
2003-2004 - Rs. 56.17 “
2004-2005- Rs. 45.29 “
2005-2006 - Rs. 52.18 “
2006-2007- Rs. 53.68 “
The revenue yield from the green tea leaves under the Lands Act seems to be not upto the mark and due taxes were not likely to have been paid by a number of tea gardens.
Some of the tea estates, the numbers of which are exhibited above, do not have any tea manufacturing units (industrial units). Those tea garden units use to make sale of the green tea leaves to the tea industrial units for manufacture and sales of black tea. The numbers of tea manufacturing units in Assam are roughly in between 750 and 800. Some tea gardens, as it could be learnt, made bifurcation or trifurcation of the original units and made the same smaller ones so as to enjoy the benefit of exemption of taxes, as provided in the amended Lands Act of 1997 effective from 31st March, 1997. A huge loss of revenue is thus being incurred annually since 1997-98.
Proposal to levy Cess on the bought- tea leaves in Assam
While presenting the Budget for the 2008-2009 in the House of Legislature of Assam on the 10th March, 2008, the Chief Minister of Assam submitted as proposal before the House for levy of Cess on the green tea leaves. The portion of the speech is reproduced hereunder:
“A large number of bought-leaf factories have come up in Assam. These bought –leaf factories purchase green leaf and manufacture tea. However, unlike established tea companies, these bought-leaf factories do not contribute any revenue to the State Exchequer. They are unable to maintain quality of tea. At present, these bought-tea factories and some established companies who manufacture tea from bought-leaf do not pay any Cess on green tea leaf purchased by them. I propose to levy Cess at therate of 20 paise per kilogram of green tea leaf purchased by them. This rate is much lower than the rate at which the established tea companies pay Cess. The established tea companies pay Cess at the rate of 32 paise per kilogram of green tea leaf in Brahmaputra Valley and 29 paise per kilogram of green tea in Barak Valley. I propose to raise a Development Fund from the revenue collected for development of small and marginal tea growers, welfare of the tea labourers in organized sector and improvement of quality of Assam tea.”
‘Cess’ means a tax or duty. A cess or duty is not generally levied on the sale or purchase of goods for which separate enactment, namely; the VAT Act is there. It is generally levied other than on the sale or purchase of goods. The Budget proposal of the Chief Minister of Assam contained that a Cess would be levied on the sale of green tea leaves at the rate of 20 paise in the rupee. The proposal did not indicate specifically the Act under which such Cess was proposed to be levied.
Tax measures under Lands Act
The Legislatures of Assam by an amendment of the Lands Act ( Assam Act IV of 2009) incorporated some provisions in the Lands Act and the same was given effect from the 12th day of February, 2009. The amendment reads as:
Section 6A-“ Every person engaged in manufacture of tea and responsible for making any payment or discharging any liability on account of any amount purported to be the full or part payment of sale price or consideration for purchase of green tea leaf, shall, at the time of credit to the account of or payment to the seller of such amount in cash, by cheque, by adjustment or in any manner, whatsoever, deduct tax calculated at the rate 20 paise per kilogram and deposit the same in the State Exchequer in such manner as may be prescribed.”
(The rate of such tax was enhanced to 25 paise per kilogram with effect from 29.04.2010.)
The said amendment provided also : (i) the ways and means for deduction of tax at source and deposit thereof and to issue a tax deduction certificate to the sellers of the green tea leaves by the purchasers; (ii) submission of return and statement of deduction of tax by the purchasers; (iii) interest for non-deduction and non deposit of the deducted tax at the rate of 1.5 paise per month; (iv) imposition of penalty for any violation of the provisions of the Lands Act and (v) institution of case in the court of law for any offence.
Levy of tax on the sales of green tea leaves- controversial
In the amendment of Lands Act, the authority of law under which such amendment was made has not been quoted. It also maintained silence as to the authority under which the tax was levied on the sale or purchase of such green tea leaves in the said Lands Act, contrary to the basic principle of levy of tax on the tea gardens lands on the productivity of green tea leaves as the measuring scale.
The question of law as has been cropped up in such exercise are discussed below :
(1) The item green tea leaf is exempted from tax, as exhibited in the First Schedule of the VAT Act. Hence, no tax is leviable on the sale or purchase of such green tea leaves under the VAT Act, which was enacted under the authority of clause (3) of Article 246 read with entry 54 of List II (State List) in the Seventh Schedule of the Constitution;
(2) No other Constitutional authority was provided to levy tax on the sale of such green tea leaves, sold by the producing tea garden to the manufacturing tea gardens;
(3) The main theme and ideology of the Lands Act is that, a tax is leviable under the Act, on the annual productivity of the green tea leaves, produced. The said Act provided no scope to levy of tax on the sale or purchase of green tea leaves, which ,in fact, are exempted from the sales tax under the VAT Act, governing the principle of levy of tax on the sale or purchase of goods in Assam ;
(4) When the aggregate area of the tea garden lands held by a person does not exceed four hectares, no tax is leviable on such lands, implying thereby that the annual productivity of green tea leaves in respect such tea garden lands, are not to be reckoned for the purpose of taxability under the said Lands Act;
(5) The new measure of tax on the sales of green tea leaves incorporated in the Lands Act from 12.02.2009 obviously created a clash and conflict with the provisions VAT Act as well as a portion of the Lands Act;
(6) The tax deduction on the weight of the green tea leaves (on the basis of kilogram) has a direct clash with the principle of levy of tax on the sale or purchase of goods, where value consideration gains the momentum;
(7) The new measure of levy of tax seems to be something unforeseen and extra-ordinary, as the newly inserted Section 6A was a measure to deduct tax at source, while liability to pay tax on such sales of green tea leaves was not given berth in the amended Lands Act;
(8) The term ‘sale’ has not been defined in the Lands Act and the basic principle of levy of tax on the sales of green tea leaves also not accommodated in the Lands Act and it seems to some extent as extra-ordinary exercise of territorial jurisdiction;
(9) The basic ingredients required for the levy of tax on the sales of green tea leaves has not been incorporated in the Lands Act;
(10) The amended Act incorporated the levy of ‘tax’ on green tea leaves is contrary to proposal of levy of ‘Cess’, as reflected in the Budget speech of the Chief Minister of Assam.
The entire matter relating to levy of tax on green tea leaves seems to be controversial and review is necessary by the Government.
Solution suggested
This zig-zag process of levy of tax may have a far-reaching ill consequence to the revenue generation of the State. Since the intention of the Legislature of the State to safe guard the revenue of the State by way of levy of tax on the green tea leaves sold to the bought-leaf factories for manufacture black tea and to make sale, therefore, the Government may consider the following suggestions for the greater interest of the revenue of the State:
(i) That, the exemption tax in respect of the aggregate area of the specified lands held by a person a person not exceeding four hectares of land, as occurred in clause (a) of Section 5 of the Lands Act, may be revoked or withdrawn;
(ii) The lands, held by a person not exceeding four hectares of land, are also to be brought under the purview of tax- net of the lands Act and the provision of the said Act has to be applied in all cases;
(iii) The liability to make payment of tax, submission of returns will rest with such tea garden land owners, as envisaged in the Lands Act and the rules, framed thereunder.
However, in order to ensure that proper payment of tax has been made by such land owners, it may made as a condition that the green tea leaves handed over to the tea manufacturing factories, such land owners are to adduce proof that the tax due to State Exchequer has been paid. In alternative, such manufacturing factories may be authorized to deduct the requisite tax, while making payment green tea leaves for manufacturing or other allied purposes. The appropriate wordings will be’ the green tea leaves placed with the tea factories for manufacture or other allied purposes instead of the words ‘sale or purchase of green tea leaves’.

(Mrinal Kanti Chakrabartty)
“ Rudra Bhawan”
R.G. Barua Road, 10- Lakhimipath, Guwahati-781024

China is eager to introduce trade relation with India

2010-06-20T05:47:00.000-07:00

China is very much keen to establish trade relation with India, where there is acute business potentiality. The construction of the Steel Well Road from the eastern sector of the North East India, a project undertaken by the Government of India to connect Mynmar in the year 2004 has not yet been materialized, though the media report reflected that a sum of Rs. 48 crore was sanctioned for the purpose. The Govern of India, it is learn, is in a dilemma to make a thoroughfare through the dense Patkai Hilly region, which make convenience for easy movement of the ultras. It is also not a denial of fact that the any trade relation with China will accelerate the economic activities in India. A decision will probably be taken after study of the political and environmental spares.
An article on “Steel Well Road topic vis-à-vis the trade relation between India and China published in the Assam daily “ Janasadharan” on 16th June, 2010 will throw some light in the matter.

Please click http://www.janasadharan.in/20100615/images/4.jpg

A brief of the Article on Basistha Temple.

2010-06-15T03:51:00.000-07:00

The Article “AOITIHASHIK BASISTHA MANDIR” (TRADITIONAL BASISTHA TEMPLE), written by me in Assamese published in the Janasadhran- Sunday Magazine “Ityadi” on 6th June, 2010, reflected the present picture of the holy shrine, where Maharshi Basistha of the Ramayana era made an end of his life. The grave inside the temple, where the body of the great sage is taking eternal rest , attracts many pilgrims not only of Guwahati or Assam, but the people from different places of India use to come to offer worship to the renowned sage, who is also well known for his miraculous ‘Kamdhenu giving milk, whenever necessary. The Bashistha river, rolled by the side of the Samadhi, had three channels, namely; Sandhya, Lalita and Kanta, where the great sage used to make “Trisandhya’ (meditation & worship) in the morning, evening and noon.
The Article presented a picture of the miserable environmental scenario of the temple side including the approaching roads, which is intended to attract the attention of the Guwahati Development Authority as well as the Government of Assam.

Journey never ends

2010-06-05T21:44:00.000-07:00

‘A journey from the grass root level towards the sky’. Though it is an absurd thought to reach the sky there is an endeavour to go higher and higher to reach the mount of glory. I keep it in my mind to go ahead with some constructive ways of life, but certain factors are responsible to discourage me on the way. First, is my ill health due loss of the glamour and energy of youth at this age of seventy three; second, is inadequate time, as I have to remain very busy with some important self-imposed assignments. Still then, I work hard daily leaving a portion specially reserved for sound sleep in the night hours. I will make all efforts to go ahead so as to serve the society on way to make services to the nation with an acute trust in God.”

TAX ADMINISTRATION IN ASSAM

2010-06-01T07:44:00.000-07:00

Tax is a contribution, extracted by the Government in the form of revenue to the State Coffer. No Government can exist without taxation. This money, in fact, is to be levied to the people and the grand art consists of levying so as not to oppress.

AIM AND OBJECT
The aim and object of the tax administration is to make generation as well to cause mobiliza¬tion of revenue resources for the purpose of augmentation to the State Coffer within the frame work of law, enacted by the Legislatures of the State in a systematical and methodical way.

TAXING AUTHORITIES
The Commissioner of Taxes (Commissioner) is the supreme authority in the field of administration for carrying out the purposes of the taxation laws of the State. He is to be assisted by a set of officers, namely; the Additional Commissioners of Taxes, Joint Commissioners of Taxes, Deputy Commis¬sioners of Taxes, Assistant Commissioners of Taxes, Superintendents of Taxes and the Inspectors of Taxes, appointed by the Government, specifying its territorial jurisdiction. The Agricultural Income Tax Officer is assigned to carry out the administration of the Assam Agricultural Income Tax Act, 1939. The post is manned by the cadre of the Superintendents.

COMMISSIONER OF TAXES
The Commissioner is an Ex-cadre post and the member of the lndian Administrative Service cadre ornaments this post He is entrusted to govern the tax administration with the help of the seasoned and veteran officers of the cadre posts. Primarily, he is not supposed to know the inner visions and techni¬calities and the taxing authorities, appointed to assist him, are to guide him in a right and proper way with unbiased briefs, clean and crystal projection of the facts. The notes are to be law, fact and docu¬ment based and are to be processed chronologically from the grass root level and onwards so as to adopt a constructive and judicious decision, implying thereby that, such a process is knowledge and experience oriented. Unless there is righteous advice and guidance, there may derailment or disrup¬tion in the walk on the main orbit smoothly and efficiently.

BIRTH OF THE TAXATION DEPARTMENT
Taxation department is a post child after the independence of India. In pre-independence period, the taxation laws, namely, the Assam Agricultural Income Tax Act, 1939, the Assam Sales of Motor Spirit and Lubricants Taxation Act, 1939 and the Assam Amusement and Betting Tax Act, 1939 (operative since 1.4.1939,1.4.1939and 1.8.193 9 respectively), enacted under the Government of India Act, 1935, were administered by the Excise Department of the Government of Assam. After the enactment of the Sales Tax Law (the Assam Sales Tax Act, 1947) from 24.12.1947 under the Government of India Act, the taxation department took its birth. All the above taxation Laws including the Assam Professions Trades, Callings and Employments Taxation Act, 1947 (operative from 1.4.1947), enacted also under the Government of India Act, 1935, received proper safe guards under saving provisions, as envisaged in Article 277 of the Constitution of India (Constitution) adopted and effected from 26.1.1950. There are as many as nine taxation laws operative in Assam.

Two taxation laws, namely; the Assam Taxation) on Goods carried by Roads and Waterways) Act, 1954 and the Assam Tax on Luxuries Act, 1997 were nullified by the Hon'ble Supreme Court of India. A portion of the taxation law, namely; the Assam Entry Tax Act, 2001 was also declared to be null and void by the Hon'ble Gauhati High Court, but the State Legislature repealed the earlier Act and made re-enactment of the same in 2008, which became effective from 1.6.2008. The new Act is to give safe guard of the erstwhile incomplete proceeding and tax recovery of the old Act and the tax already collected, but all proceedings under the 2008 Act are to be taken up denovo for the purpose of admin¬istration of the new Act. Two other Acts, namely; the Assam Passengers and Goods Taxation Act, 1962 and the Assam Urban and Immoveable Properties Act, 1963 administered by the taxation department, were transferred to the Transport and Municipal Department in 1989 and 1971 respectively.

POWERS AND FUCTIONS OF THE TAXING AUTHORITIES
The power and functions of the taxing authorities are of three folds : (i) Executive, (iii) Quasi-judicial and (iii) Administrative. The former two are in relation to the administration of the taxation laws and the last one is for general administration.
The bifurcation of executive and quasi-judicial powers in the process of administration of the taxa¬tion Laws was essential, keeping in view, the mandatory provision of Article 50 of the Constitution, that is, the doctrine of Separation of Powers. The encroachment of powers by the executive exercising the quasi-judicial power at the same time may be counted to be pre-judicious, as will be evident from the verdicts of the Hon' ble Courts of law. An investing officer or any team of officers is not to exercise the quasi-judicial powers for the same issue.

APPOINTMENT AND DELEGATION POWERS
The taxing authorities of the State are appointed by the State Government by notification in the Official Gazette with specification of the territorial jurisdiction. Only the Government can modify, extend or curtail such jurisdiction and none else. The Commissioner is to delegate his powers to the category-wise of officers subject to the conditions and restrictions imposed in the Act and the rules keeping in view the territorial jurisdiction, specified by the State Government. There should not be any overlapping or encroachments in the power delegation and power exercise scenario.

SHORTFALLS IN DELEGATION OF POWERS
The Assam Value Added Tax Act, 2003 (VAT Act) came into operation from 1.5.2005. In the power delegation scenario, some shortfalls became obvious and reconciliation seems to be incumbent for proper and smooth administration of the VAT Act. For instance, the scope of power delegation has been restricted in rule 6 of the rules, framed under the VAT Act. This seems to have not been rightly observed. In the said rule, there is no scope for delegation of powers to the Assistant Commissioners of Taxes, but the Commissioner by Notifications dated 28.4.2005 delegated his powers to the said set of officers without any base. Unless rule 6 is amended and the words Assistant Commissioner is accom¬modated, some complications might be there in near future. The, Commissioner has not delegated his powers to the appropriate category of the officers to exercise the powers of registration, provisional assessment, best- judgment, assessment to the unregistered dealers, escapement of assessment, power of forfeiture, calling of returns, levy of interest and in many other aspects. Moreover, delegation of powers to compound offences to all categories of officers seems to be in contravention of the provi¬sions of rule 6. The definition of Assistant Commissioner and Superintendent has special significance in the matter of administration of the VAT Law, as such authorities are one and same in respect of a dealer in a particular area and there can not be any overlapping of territorial jurisdiction.

The department will have no measure of defence, if the exercise of powers without delegation or the powers delegated beyond the scope of rule is challenged.

TAX MACHINERIES
The services of each category of official as well the taxing authorities are counted as indispensable for proper administration of the taxation laws of the State. None is inseparable from others and none is less important.

GRASS ROOT LEVEL
The grass root level officials are the members of the ministerial cadre. Unless the files are designed properly and systematically and moved with action, there may be dislocation in the system. In taxation department, the system of maintenance of records is very unique and very much methodical. The case records are to be maintained in double cover. The outer cover in side is meant for preservation of return at the first inside and preservation of the order of assessment in the last side. In between the first cover the correspondences and Miscellaneous or sheets are to be maintained period wise, year-wise, as the case may be. It is felt incumbent that a summery of the position of the files is maintained in side each case record. The Index Register and the Assessment, Demand and Collection Registers are like the mirror of a dealer and maintains the complete dossier. These records must have the parity with one another so that cross checking may yield a positive result.
The dealing assistants should make it a habit to make scrutiny of the case records from bottom to the top and to put up with action, wherever necessary. Where there is no action the portion is to be closed and tagged. Such scrutiny may ensure proper realization of tax,' if necessary by taking coercive measures. The records are to be maintained in such a way that no sort of entry is lost under any circumstances. }
The maintenance’ of case diary and put up diary are two basic requirements of the concerned deal¬ing assistants. The other records, like maintenance of Bakijai Registers, Register in relation to institu¬tion of court cases, composition of offences, imposition of penalty Register has a dire necessity. The summery at the end of each month is to be drawn up in the index Register, Assessment Demand and collection Register. The Assistant Commissioner or the Superintendents are to check the registers and records and ensure follow up action.

FIELD STAFF
The field staff mainly connotes the Inspectors of Taxes. There main duty is to make survey of the area at least three times in a year. The survey should be made in respect of all the business of the dealers/assesses of the area. None is to be left out. Even a Pan shop or a Saloon should not be omitted. The detailed particulars are to be recorded in the survey register. Such survey register will present the complete picture of business position in the area. The survey should not be confined to the urban areas only, but it should be extended to the rural or semi urban areas, where there is flow of business. Survey Register should be maintained for each Act separately, so that complete picture of the assessees re¬mains visible. Such survey is subject to inspection by the superior authority at least twice in a year.
Enquiry in respect of any assessee and inspection of the business premises, godowns, loaded/un¬loaded trucks form the other parts of duties of the field officers. Such exercise is to be made with a sober approach but with firm stand.
The collection of particulars from different sources with verification of such collected particulars is another vital part of duty of the field officer.

The work of inspection, if necessary under the authority of search warrant and the preparation of the seizure list requires due prudence and proper application of mind. Likewise, the seizure of goods should follow the same footstep. It is to be made imperative that all inspection be recorded in the Register with the outturn thereof.

QUASI-JUDICIAL PROCEEDINGS
The powers and function of the Assistant Commissioners and the Superintendents of Taxes are quasi-judicial,. Registration, requirement to furnish security, administration of assessment proceed¬ings and penal proceedings, all are quasi-judicial ones. The power of the Civil Court has been vested upon the said authorities, who can enforce attendance of any person, administer oath or affirmation in connection with any proceedings, require production of documents and evidences for such purpose, as may be warranted.
The orders in each case must be law, facts and materials based with a self-speaking exposure There should not be any biasness in the contents of the orders, but with a judicious approach and out look. While administering the quasi-judicial proceedings, all facts are to be recorded properly. Though the Act has provided that the orders, instructions and direction of the Commissioner is binding to the officers subordinate to him, but a reservation is maintained, whether such imposition will ensure fair and judicious delivery of judgment. There is possibility of being influenced by any order, direction or instruction in the lawful administration of any quasi-judicial proceedings under the Act.

APPELLATE PROCEEDINGS
The Appellate Authority is a quasi-judicial authority, but it maintains its independent entity. The Commissioner is neither to delegate his powers nor to issue any instruction in administering the quasi-judicial appellate functions under the Act. The Appellate Authority is to dispose of the appeal petition after providing opportunity to the person appealed and the authority against whose order appeal peti¬tion has been filed. The order of the Appellate Authority is not be interfered, by the Commissioner but the Board of Revenue, Assam can entertain an appeal, if filed by the aggrieved party or the Commis¬sioner. The scope for filing writ petition before the High Court on the question of law and justice, however, remains open.

REVISIONAL AUTHORITY
The power of revision of the orders of the Assessing Officer rests with the Commissioner or by the officers not below the rank of the Deputy Commissioner to whom such power is delegated by the Commissioner

SUO MOTO REVISION
The power of suo moto rests with the Commissioner or the persons appointed to assist the Commis¬sioner upto the level of the Deputy Commissioners. Three ingredients are necessary to invoke the powers of suo moto revision, (i) There must be an order (ii) the order must be erroneous and (iii) The order must be prejudicial to the interest of the revenue. Unless, these three ingredients exist, the invo¬cation of power of suo moto revisions is likely to be questioned. The order of suo-moto revision must reflect this vital requirement. When such ingredients are absent in the order, the order is likely to suffer from deficiency.

INVESTIGATING WING
There had been an investigating wing in the taxation department, which was withdrawn in 1983 December without being re-designed or revived so far. Though the Sales Tax Laws of the State em¬powered the State Government to constitute such a wing for investigation and detection of taxes, the same has not been materialized. This has a dire necessity to check, detect and prevent evasion of taxes. An Audit Team has been constituted, which does not have any legal base and such functioning of the Audit team may invite controversy in the long run. That can be regularized by creating an investing wing with assignment of powers, inter-alia, for investigation, audit etc. Audit is a part of investigation and its limitation need not be confined to the case records only.

POWER OF ASSESSMENT TO THE INVESTIGATING TEAM
A discussion has already made that following the doctrine of Separation of Powers, the quasi-judicial powers of assessment and other allied matters are not to be exercised by the investing wing and the said power rests with the assessing wing in the units. This aspect requires a fresh consideration with proper review.

OPERATION OF CHECK POSTS
The operational aspects of the check post suffer from various shortfalls and lacunae. First, there is no Weigh Bridge; second, there is no proper platform to unload the goods with adequate man- power; third, there is no godown to store the goods, when seized. The misuse of Delivery Notes has become a regular phenomenon. It is believed that the check posts maintains the complete dossier of each dealer with registration numbers, commodities dealt in and other allied requisite information. How they can make it possible to evade payment of tax by furnishing false information in respecct of the goods carried by misrepresentation of facts? The particulars transmitted through inter-net may help to adopt follow up action and to apprehend such unscrupulous traders. It is however imperative that for the purpose of administration of the quasi-judicial proceedings or to bring criminal liabilities, the Deliv¬ery Notes must be physically available to the concerned Assessing Officers. Actually, the Check Posts are the competent authorities to arrest such foul play at source and to do away with the odds by initiating coercive measures like detention of vehicle, seizing of goods and forfeiture or disposal thereof.

FIELD INSPECTION
There has been a good deal of deficiency in the matter of field inspectio, namely; at the business premises of the dealers, godowns, ware houses and carriers. The carriers place the pivotal role in indulging the evasion of taxes in collusion with the buyers and the sellers of the goods. Each officer is responsible for proper levy and collection of tax, checking, preventing and arresting evasion of taxes including collection of evaded and realization of outstanding dues in his area. In the past era, the good performances of the officer was a measuring scale to wards counting his efficiency and consideration for posting in suitable commercil areas. The inspection of cinema halls irrespective of any show was a regular phenomenon and it was made compulsory to maintain Register, to submit monthly statements in addition to submission of fornightly diaries.

OFFICE INSPECTION BY THE HIGHER AUTHORITIES
In sixties and earlier, office inspection by the Commissioner at least three times in a year was regular phenomenon. Such inspections were marathon and very tough, but constructive. The inspec¬tion reports were to be typed half margin and preliminary following action reports were to be submit ted within a specified time. With the increase of volumnous works and strengthening the man power, such task was carried out by his juniors in an identical manner. This improved the work culture and accelerated the work efficiency.

AUDIT
The aim and object of audit are to detect the irregularities and to regularise thereof. When there is major lapses, the officers were answeable to that. The existing provisions of law were rectified to cure the defects. Now, the said culture has been changed. The audit encroaches its jurisdiction and makes excess.

ADMINISTRATION OF THE ASSAM VALUE ADDED TAX ACT, 2003
Though the Assam Value Added Tax is a tax on the sales and purchase of the goods, but its aim and object is not identical to the previous ones. It is somewhat unique and technical and designed with a self-wheel-steering drive. The Act has, however, been designed identical to the previous sales tax law, whereby ample ambiguity and misconception prevail. For example, the spirit and intention of the Act was to levy tax on every stage of sales subject to credit of input tax. In the Act, contrary to the aim and object and the preamble, a tax measure for levy at the point of first point sales in respect of 23 items has been incorporated, though the Act has not specifically recorded anything about such departure from the main theme.
The VAT Law is for levy of tax on the sales or purchase of goods, but in the Act some measures of taxes were adopted to levy tax on exempted goods, production, total value of works contract, import of goods, which is beyond the spirit and intention of the Act. This type of payment of composition of tax obviously disrupted the levy of taxes at subsequent sales or inter-State sales making the whole process in the VAT system is anomalous and the process is likely to be foiled and frustrated.
The issue of Tax Invoice andivRetail Invoice are compulsory in the VAT regime to ensure proper accounting for and proper payment of tax thereof, but this has neither been complied with or not enforced for which trie leakage of revenue has become obvious.
The acceleration of activities in the field may discourage any such odds.

ENTRY TAX LAW AND THE LUXURY TAX LAW
The administration of these two Laws are to be carried on under the VAT Law of Assam, but the aim and object of levy of tax under these Act are not identical tq VAT Law. It will be in the fitness of things to make provisions in the Act for independent process of administration to avoid any complications.

TAX LAW ON SPECIFIED LANDS
With a view to ensure correct and accurate levy of tax, the following important aspects requires to be looked into:
(i) There should be a survey in all tea gardens irrespective of big and smalls.
(ii) The accuracy of production of green tea leaves is to be verified with the volume of production of black tea, keeping in view the ratio 4.5 :1.
(iii) There should be cross verification of green tea production statement, furnished in the sales tax department with the statement furnished in the Central Excise Department.

ELECTRICITY DUTY
The Central Sales Tax Act, 1956 has restricted the levy of tax in respect of the energy supplied outside the State, but contrary to this, the provisions for levy of tax on such supply, has been incorpo¬rated in the Assam Electricity Duty Act, 1963 in October, 1984.

AMUSEMENT AND BETTING TAX ACT
The Assam Amusement and Betting Tax Act, 1939 is to be renovated and re-designed to make way for assessment, specification of violation of the provisions of the Act including evasion of taxes and penal measures thereof.

TAX ON PRODESSIONS,TRADES. CALLINGS AND EMPLOYMENTS
Actually, the above measure of tax is hot a tax on income, but it is a tax on Professions, trades, callings and employments. The income derived out of the same is counted as a measuring scale for the purpose of levy of tax. But with the amendment of the Act, 1992, there was a crack in the system and this required to be restored.

WORKS CONTRACT AND LEASE:: WHETHER VAT COMMODITIES ?

2010-06-01T07:41:00.000-07:00

VAT is a multiple system of tax leviable at every stage of sales of goods made by a dealer, subject to credit of input tax paid at the time of previous purchase of the goods. 'Input tax' and 'Output tax' are one and the same thing. The tax paid by the purchaser to the seller is input tax, while the tax realised by the seller from the purchaser and paid to the Govt. is output tax. A controversy is prevalent as to whether 'Works Contract and Lease' are VAT Commodities and the taxability on such item come under the purview of VAT tax-net.
Following a number of litigations and the Apex Court decisions against levy
of the tax on Works Contract and Lease, the Constitution of India was amended in 1982 and 'the transfer of property in goods involved in 'Works Contract' and 'the transfer of right to use any good without transfer of ownership' have been brought under the purview of the definition of 'Sales of goods'. The problem thus got a halt and tax on such transfer of property in goods and transfer of right of goods was well being levied under the Assam General Sales Tax Act, 1993. With the introduction of the Assam Value Added Tax Act, 2003, the basic principle of levy of tax, which has been discussed above, the levy of tax 'Works Contract' and 'Lease' has become irrelevant in as much as the 'Works Contract and Lease' maintain their independent entity and separate bearing. The multiple system of sales clockwise or stage wise in such deal become irrelevant. The VAT Act mainly dwelt in the basic principle of levy of tax on every goods at every stage of sale. It has not accommodated the principle of levy of tax on 'the transfer of property in goods' involved in 'Works Contract' and the 'transfer of right to use any goods involved in Lease. There ought to have a provision dispensing with the main theme of VAT so as to accommodate this extra-ingredients in the tax-net of Assam. The scope for levy of tax under the VAT Act has been specified in the Schedule attached to the Act along with the category of taxable goods not specified in other Schedules of the Act with the broad term 'Works Contract' and 'Lease'. The basic principle of levy of tax has not been accommodated. 'Works Contract' and 'Lease' are not the goods and the concept of levy of tax on 'Works Contract' and 'Lease' seem to be a deviation from the main spirit and intention of levy of tax on the sales of goods in the VAT ideology.
Assuming, but not admitting that the legislatures, while incorporating such measure of tax on 'Works Contract' and 'Lease', intending to levy tax on the transfer of property in goods involved in Works Contract and on the transfer of right to use such goods involved in lease, the rates of tax specified in Schedule at 12.5 paise in the rupee, is not at par with the rate of commodity-wise tax, specified in the other Schedules of the Act. For instance, the rate of tax on the sales of declared goods is always 4 paise in the rupee and it can not exceed the rate declared by the Govt. of India by enactment of the Central Sales Act, 1996 under the authority of the Constitution of India. Pipes of all varieties, pumps, tractors, ships vessels and many other allied articles, pertaining to 'Works Contracts' and 'Lease' do not have the rate of tax beyond 4 paise in the rupee. Naturally, there has been strong clash between the rate of the tax specified at 12.5 paise involved in 'Works Contract' and 'Lease' and the rate of tax of goods specified in the Schedules of the same VAT Act. There can not be double rate of tax on the same commodity for the purpose of 'Plain Sale' or 'Sale in the course of Works Contract' as well as the alleged sales on 'Lease'. Obviously, discrimination has been well maintained in tax-net scenario under the VAT Act of Assam.
The VAT law in Assam provided the measure of Composition of tax on works contract to be exercised by the works contractors at their own option in dispensing with the requirements of making payment of tax on the sales element under the VAT Act. The rate of tax payable as Composition of tax under such Scheme has been specified at 4 paise in the rupee on the gross value of 'Works Contract'. Apparently, this is abusive of the principle of levy of tax, as enumerated in the Constitution read with the definition of VAT Act.
A transfer of property in goods involved hi 'Works Contract' is liable to be taxed. A tax is leviable on the taxable commodities and not on the exempted ones. Moreover, labour charges, transport charges and other allied charges involved on the works contract can not be brought under the purview of taxability.

Transfer of right to use any goods in connection with lease is not a permanent sale of good. It is casual deal without maintaining any continuity. A lease deal on the same commodity may be frequent on the expiry of the specified period of time, but it may not be on chain system. This has provided scope for levy of tax on the same item leased without any scope for any credit of input tax. The legislatures have not specified the items to be taxed on lease and the levy of tax on lease has been made wide and open. It may naturally have an adverse effect to the lessesors and lessee when to be taxed on small deals of lease. No 'taxable quantum' has also been specified on lease deals. A confusion always prevail over the question of 'Hire' and 'Lease', as it has not been well analysed in the system. In absence of that creation of confusion to the dealer and exercise of powers by the taxing authority arbitrarily can not be ruled out in the matter.
Our above projection explaining the propriety of taxability in 'Works Contract' and 'Lease' ought not to have incorporated in the VAT Act of Assam, which maintain a separate aim and object with separate way of functioning. On the other hand, the levy of tax on transfer of property in goods involved Works Contract and transfer of right to use good on lease can not be given a good bye, as a substantial amount of tax revenue pours into the state coffer annually.
A separate enactment of law is considered to be imperative for the sake of better tax administration vis-a-vis proper augmentation of revenue of the State without any scope of disputes or controversy.

TERRORISM BY MAOIST

2010-06-01T07:37:00.000-07:00

The main theme of the Constitution of India is that it is a Sovereign, Socialistic, Secular, Democratic Republic. It provided each citizen of India the right to form association, to ensure freedom of speech and expression. So, every citizen can exercise such right. The Constitutional guarantee, however, did not encourage any citizen to be violation and to go ahead with terrorism. It will be an obvious act of abuse of fundamental right, if the path of violation or terrorism is adopted by any association or organization.
The birth of Maoist in the South Eastern part of India is not very old, but their activities in the path of terrorism are gaining the momentum since recent times. The Maoist moves are with the ideology of Mao-Tse- Tung, the revolutionary Communist leader of China, who by his ideology of Socialism brought a drastic change in the Republic of China during the period after his birth in 1889 to his end in 1976.
Though Indian Constitution ensured a Socialist pattern in the Country’s Democratic set-up, in actual practice, the trend of Capitalism is getting priority. In the areas, where the Maoists are fed up with the trend of capitalism, they have raised their heads against such odds. Actually, terrorism is not the proper way for any of such solution, but the meaningful and peaceful dialogue may make end of the burning or chronic problems.
Maoists, who are moving with the ideology of Mao Tse Tung, must not forget that they are out and out Indians and fully under the shadow of Indian Democracy vis-avis the Indian Constitution. They should not forget that China’s attitude is not very much friendly with India since last 48 years. The trend hostility is reflected in everyway of their activities.
So, they must keep in mind that they are Indians first and in following any ideology of others they should equally be up and doing in maintaining the unity and integrity of the Indian Sub-Continent.

NEW DIMENSION IN TRADE ERA

2010-03-10T23:27:00.000-08:00

The Asean Car Rally from Guwahati of Assam to Myanmar and onwards of the South East Asian countries in November, 2004 was the land mark maiden venture to initiate and to mobilize the ties of fraternity between India and the South Eastern Countries, namely; Myanmar, Thailand, Malaysia, Indonesia, Laos, Combodia, Vietnam, Philippines aiming at to go ahead in creating international understanding and prospective commitments. It was a prelude to establish a good and constructive gesture for acceleration of the potential trade activities between the two regions, on the fast symbolic globalization era. The abandoned road, was improved and made convenient for the car rally mission. The road, as is known as ‘Steelwell Road’, had its base structure in the Second World War period. The construction of the portion of the road from Mynamar and onwards is said to have already been completed. China of East Asia also constructed and expanded the portion of the road to link up with the Steelwell road with the aims and object to associate itself in extending its trade perimeter to India. A horn of dilemma, however, prevails in the Indian counterpart over the question of security of the eastern sector of the sub-continent, as road is penetrated through the dense and arduous Patkai Hill range, the extended base of Himalayas, making an easy access by the ultras. The Government of India, however, accorded budgetary sanction of Rs. 48 crore of rupees two years aback and it is learnt that the road is nearing completion.

Steelwell, the great hero
‘Steelwell Road’ has a historic significance, which was baptized after the name of Steelwell. A question naturally crop up ‘who was Steelwell?’ The history marks Steelwell as a prominent military officer in the Brigadier rank of the Second World War, whose untired efforts and immense costly sacrifices had the consequential effect of achieving the victory of England and its alliances in the war front against Japan and the alliance components. The rival nations got vanquished in the terrific battle.
‘Joseph Warren Steelwell’, popularly known as ‘Zo’ was born in 1883 A.D at Florida, but he passed his early days at New York. After acquiring the degree in the West Point Military Academy, the 5 feet 8 inches 1.7 meter tall, Steelwell got appointment in service at Philippine. 14 months later, he came back to West point, where he was engaged to learn different languages. After wedding Winfred Smith, he again backed to Philippines. At the late hours of the First World War, he was sent to China as the teacher to provide education in military languages and he simultaneously availed of the opportunity to learn the Chinese language as well. He became the father of five children, while he was in China. Steelwell was elevated to the rank of Brigadier and soon after that the Second World War broke out spreading over Europe, North Africa and South East Asia. Steelwell rushed by air to Chungking to meet Chiangkoi Shwek immediately after he assumed the war charge in South East Asia. He found that the only way of supplying food-stuff and war materials was by air from Ledo to Kunming, but that, too, was hardly possible in the 1000 kilometer long hazardous air flight. On 7th March, 1942 Rangoon, the capital of Burma, was captured by the Japan-alliance militants. Steelwell came by air from Chunking to Mandalaya, where the British Lieutenant General Sir Herald Alexander took shelter after the crack down of Rangoon. Incidentally, this Alexander jas withdrew the British army from Dandrik of Europe, when failed to face the sharp German aggression in 1940 and this has been a repetition to the earlier event. Both Steelwell and Alexander tried their best to save the middle part of Burma, but all efforts proved to be the futile exercise. Japanese army caused dislocation of rail and air communication in North Burma. Steelwell had no other way, but to retreat. After a strenuous and hazardous journey on foot and partly by boat, his troops reached Imphal without there being, however, any loss of life. Steelwell rushed to Delhi and furnished a detailed report on the catastrophe. The unbecoming circumstances forced Steelwell to remain away from Burma since June, 1942 to October, 1943. Japanese army captured the eastern coast of China and created havoc in its Southern border by frequent air raids. A profound necessity, therefore, cropped up for construction of a new road connecting Burma to get it hostile free. The Manipur- Pelel Road, was an alternative road, but it was not possible to be utilized for carrying the food-stuff and war equipments during the summer. Steelwell was restless and held marathon discussions in Delhi and Chunking to chalk out plan and programme. In 1942, the prospect of construction of an alternative road from Ledo-Pangchao pass-Hukang valley-via Misina to Burma was in sight. The practical aspects were examined, but it revealed that standing hills, dense forests, loose and muddy soil, deep-unsmooth ditches, heavy rainfall and unhygienic climate posed to be a hindrance to materialize such plan. This 768 kilometer road is to be constructed through three high ranges of hills, over three rivers beds with hundreds of bridges. Steelwell and Chiangkain shwek paid great importance for construction of the road at any cost, but the British Prime Minister Winstone Churchill was against such venture. The Americans were, however, adamant and gave high stress towards construction of the road linking Ledo – Burma at any cost in order to frustrate the territorial expansion of Japan to Burma. The American sent 330 skilled engineers and road construction materials and heavy machineries and equipments from 18,000 kilometer distance, by ocean, sea and road and this was routed through the western corridor of Assam. The military convoy congregated by Indian, African, American militants rushed enthusiastically to face the combat. The war mission, as we enjoyed in our early days, was really very much thrilling. The construction work was started in December, 1942 and 187 kilometer was completed on 27th December, 1943. The war footing construction made an end in the last part of 1944 connecting Ledo - Burma within a period of two years.
The posiion of the road is as below :
In Burma (Myanmar portion) In China
Pangchao Pass - 61 K.M. Mangyung – 740 K.M.
Tagap Ga - 127 “ Banting - 811 “
Sind Bowang - 165 “ Baochan -1043 “
Jambubam - 287 “ Yungpin - 1208 “
Barajup - 304 “ Chuyung - 1543 “
Michchhina - 403 “ Kunming - 1726 “
Bhamo - 595 “
Namkham - 707 “

Steelwell was the pioneer architect in the road construction project as well as the tactful management of the war front. The Japan and its alliances were kept busy otherwise and they could hardly imagine the far sighted diplomatic way of the road construction mission. The counter attacks on the showering attacks by the rival army continued. Japan had ultimately to surrender after Atom Bomb blast at Nagachaki and Hirosema. German also got vanquished. Thus the Second World War thus came to an end with the victory of England and alliances.
The untired, sincere and diplomatic services of Steelwell were profoundly recognized and the newly constructed road was named after him. It is unfortunate that the said road, constructed at high coast with deployment American, African, Chinese, Kacin, Oria, Nepali, Bengalee, Naga, Bodo and tea garden labourers, lost its importance and remained abandoned soon after the World War was over. This rather became a thoroughfare of a section of anti-socials and ultras. Steelwell became old; the incessant hard labour with deep sense of anxiety ruined his health. He was laid down by liver cancer. The Distiguished Service Medal, Legion Merit, Distinguished Service Cross was awarded to him. On the previous day of his sad demise on October, 12th, 1946, he was ornamented with the rare award ‘Combat Infantryman Badge’.

Trade scenario
The South East Asian countries are rich in precious resources like agricultural, forestry, fishery and mineral ores. The development of modern technology upgraded as well the industrial platform. India has immense potential resources including raw materials of different types, which are still to be mobilized. The aim and object of Asean Car Rally, as stated earlier was a token of good gesture towards reciprocation of trade venture. The road beyond the Indian portion has already been completed. China is also eager to expand its trade base to India. News
projected by the media reveals that India has to think twice in adhering to the proposed scheme of trade activities. China, in fact, is maintaining hostility with India since about last five decades. With provocative words, it is demanding Tawang of Arunachal Pradesh of India as a part of Chinese territory, though, in fact, it is a part State of India. Their modus operandi seems to be hostile and aggressive. Any accommodation of China in the field of trade activities through the eastern corridor, it is feared, may not be congenial to the security of the country.

It is recalled that for this blunder, the British Raj overthrew the Ahom Kings by expanding the trade base through the East India Company. The inner fall out was main factor. There is strong apprehension of repetition of such event, as Assam is confronted with many ghastly odds. Myanmar is also not playing a cordial role with India. It will be evident that it accommodated the United Liberation Front of Assam (ULFA) and other hostile ultras and afforded armed training at Kachin. Of late, the news media published that the Maoist of the north east India are importing Chinese arms from Myanmar and stored at Nagaland to spread terrorism and unrest in the sub-continent. The ulterior motive of such international folks can be easily guessed. Such ultras entered Assam through this road oft and on with destructive arms and ammunitions and applied for brutal killings of the brethren citizens of the soil . ‘Look before you leap’- this doctrine is now the main theme of consideration by the Government of India.

(Mrinal Kanti Chakrabartty)
“ Rudra Bhawan”,R.G.Barua Road, 10-Lakhimi path, Guwahati-781-024

CENTRE SEIZING STATES’ ECONOMICAL POWERS

2010-03-10T23:14:00.000-08:00

The Constitution of India, a symbolic ideal of Sovereignty, Socialism, Secularism, Democracy and Republicanism in the global scenario, was enforced since the 26th day of January, 1950. It is like the holy Geeta in the Hindu Philosophy in socio-economic and political-administrative spheres of the country in as much as the national activities are carried on and are governed by its formulated principles and guide lines. While it laid down the divergent powers and functions of the Centre and the States, any clash or conflict in the field of power exercise is not generally visible.

Introduction of sales tax measures in Assam

Article 246 of the Constitution empowered Parliament and the States Legislatures to make laws on the subject, specified in the Seventh Schedule:
246(1)- The powers to make law in respect of the matters, enumerated in List-1 (Union List) of the Seventh Schedule of the Constitution has been vested upon Parliament.
246(3)- The powers to make law in respect of the matters, enumerated in List-II (State List) of th Seventh Schedule, of the Constitution, has been vested upon the States Legislatures.
246(2)- The powers to make law in respect of the matters, enumerated in List-III (Concurrent List) the Seventh Schedule of the Constitution, has been vested upon Parliament and subject to clause (1) of Article 246 of the Constitution to the State Legislatures.
The tax on the Sales and purchases of goods within the State, as enunciated in entry 54 of List II of the Seventh Schedule, is a State subject, while the tax on the sales and purchase of goods in the course of inter-State trade or commerce, as envisaged in entry 92A of List I of the Seventh Schedule
of the Constitution, is a Union subject.
The Assam Sales of Motor Spirit and Lubricants Taxation Act, 1939, a measure of tax on the sales of petroleum and lubricants was introduced from 1.4.1939 under the authority of Section 100(3) read with entry 48 of the
Government of India Act, 1935 This act was repealed and replaced by ‘ The Assam (Sales of Petroleum and Petroleum Product including Motor Spirit and Lubricants) Taxation Act, 1955 on 1.5.1956 under the authority
conferred in List II entry 54 of the Seventh Schedule of the Constitution. After the independence of India, but before
the adoption of the Constitution of India, a new measure tax on the sales or purchases of goods was introduced and ‘ the Assam Sales Tax Act, 1947’ came into effect from 24.12. 1947. Thereafter, a measure of tax on the sales or
purchases of some specified goods, imported from out side the Assam or such identical goods manufactured, made or processed in State was introduced with effect from 1.7.1956 by enactment of the Assam Finance (Sales Tax) Act, 1956. With the said authority a tax measure was as well adopted on the last point purchase of some specified goods by way of enactment of ‘the Assam Purchase Tax Act, 1967 from 3.7.1971. All these taxation Laws were amalgamated consolidated and amended to give birth to the unified ‘ Assam General Sales Tax Act, 1993 on
1.7.1993’.

Central Sales Tax measures
Parliament enacted ‘the Central Sales Act, 1956’ for the purpose of levy of tax on the sales made in the course of inter-States sales-purchases by virtue of the aforesaid powers and the same was effective from 5.1.1957. This tax
measure obviously provided a strong guard In respect of inter-State deals made between one State and another and it ensured proper levy and collection of taxes at the State level as well.

General Sales Tax

The traditional and chronological exercise of levy of tax on the sales or purchases of goods in the States since 1939 made way for acceleration of revenue trend and it played a pivotal role in the healthy growth of economy of
Assam. The Assam General Sales Tax Act, 1993 plugged some persistent lacunae and upgraded the power exercise scenario by the taxing Authorities for smooth and efficient administration.

Value Added Tax
The prolonged tax measures got a halt and a changed system of tax measure came into effect from 1.5.2005 by enforcing ‘the Assam Value Added Tax Act, 1993’ (VAT). VAT is a multifarious system of tax to be levied and
collected at every stage of sale subject to, however, the refund of the tax paid (in put) on the previous purchase of goods. In fact, following heavy pressures from the international fiscal agencies, like World Bank, Asian Bank,
International Monetary Fund etc., the Government of India made an imposition to the State Governments to introduce the VAT Regime in the States without allowing thm to judge and opine on the propriety of dispensing with the prolonged heritage. The heavy pressure from the Govt. of India alerting against the providing monetary support etc. compelled the States to agree. Assam was the first State to welcome the proposal. The neighbouring territories like Bangladesh, Nepal, Pakisthan and Sree Lanka already introduced this system of VAT. These small countries found no difficulty to proceed on.
There is no denial of fact that VAT is a unique and methodical system of tax. It is self-designed and moved by self-driven wheels. That means, the success of VAT regime is entirely dependable on the honesty, sincerity and good will of all sections of people, traders and the tax machinery. India is a Federal structure of country with the conglomeration of as many as 28 part-States and 7 Union Territories. The Constitution provided power to the States to frame the sales tax law for levy, collection and augmentation of revenue vis-à-vis ensuring the growth of economy. The centre’s imposition to make uniform rates of tax of different commodities could not be rigidly maintained by the States, as the safe guard of public interest was equally imperative.It is pertinent to say a large section of people of Assam are illiterate or half literate. They are not capable enough to abide by the requirements, conditions and restrictions of the VAT law. The issue of ‘Tax Invoice’ and ‘Retail Invoice’ are not properly and rigidly enforced, which resulted in improper and inaccurate maintenance of accounts. So, this amounted to be a farce. The
claims of Input tax credit lack proper discipline. There is acute collusion and collaboration between the traders, customers and the tax machinery in the tax dodging episode on which no proper and adequate preventing, arresting and detecting measures have been enforced.
The main theme of the VAT is to levy tax at every stage of sales, but to the utter deviation of the said principle, the Govt. of Assam adopted the measure of tax at the stage of first sales on some commodities, like crude oil, petrol, diesel, petroleum products, tea, liquor, bitumen etc. in the VAT Law Assam. The incorporation of tax free sales of oil products between Oil Companies seem be detrimental to the ideology, norms and procedure of either the VAT regime or first point tax scenario. The system of payment of composition of tax on the production of brick (not on sale) , import of marble (not on sale) and on the total value of works contract (instead of transfer of property of goods) seems to abusive of the constitutional footing, as envisaged in Article 366 (29A) of the Constitution. The composition of tax levied and collected at source obviously created a systematic fracture in the process of realization of tax on subsequent sales and inter-State sales. The VAT regime was thus on the way of crack down the clock-wise deals. It is believed that the system of VAT regime did not yield the expected revenue generation scheme. The States like Assam is maintaining the revenue equilibrium on the first point sales of taxable goods. Assam is an industrially backward State. The major industries like oil sectors, tea sectors have been isolated in the VAT net of Assam. Any short supply of crude oil has the consequential effect of deficiency in collection of sales tax.
Goods and services tax
It has been learnt from the news media that the Government of India has proposed to introduce ‘the Goods and Services tax’ in the country in replacement of the present VAT regime from 1.4.2010. It may not, however, be done immediately, as the States are not central exercise duty and for that purpose, the Constitution will be amended. That means, the States are likely to lose matter of traditional sales tax revenue administration.
We expressed our apprehension before the VAT regime was proposed to be introduced projecting some ill consequences in the measure. Such apprehension, we believe partly accomplished. We also endorse our similar anxiety and apprehension on the proposed measure of ‘Goods and Services tax.’
We hope, the Government of India will not unilaterally take such a decision by the seizing the power of the State and consider it to be incumbent to hold marathon discussions with the States’ economists, intellectuals in a phase manner on this grave and austere thought provoking issue.

(Mrinal Kanti Chakrabartty)

HASTY DECISIONS MAY INVITE MORE COMPLICATION

2010-01-27T05:59:00.001-08:00

The Indian sub-continent is on the point of a multifaceted volcano having possibility of eruption at any moment, which may result in unforeseen and unhealthy situation. The chronic burning problems of the country are already on the heels to create unrest and instability. An eruption may take place at any time, if the continued chronic problems are not handled with prudence and farsightedness. A trend of eventuality seems to be insight and the volcano in partial slumber, may awake up and erupt at any time. Immature but hasty decision may, no doubt, add fuels to the inner blazed flames of volcano to create catastrophe. The problems of the sub-continent at this stage are of manifolds. The unrest activities of the multifarious groups of ultras in different parts of the country are at present gaining the momentum. The trend of international threat of aggression by the nations, hostile to India, namely; Pakisthan and China already posed to be a cause of great agony and tension. The silent aggression by a section of illegal immigrants from the adjoining territory of Bangladesh and spread over the eastern sector of the Indian Territory more particularly in Assam with some obvious critical and vested aim in mind, has naturally posed to be a great threat to the indigenous people of the area. The said section of people are politically so alert and to whom the shower of blessings from the political level pour so heavily with the theme ‘safe guard the interest of the minority community’ that, it can be construed that it is intended to protect the ‘Vote Banks’. These immigrants use to roam in a separate world with some distinctive aims and objects. Though presently, Bangladesh maintains a good relationship with India under the dynamic stewardship of Shiekh Hasina with the ideology of her late lamented father Banga Bandhu Shiekh Mujibar Rahman, the mischief already caused can not be mended or repaired at this stage. The Bangladesh Government seems not keen to adopt the go back policy of such illegal immigrants from India; the counter part nation (India) also thinks twice to give a good bye and to evacuate the precious vote bank areas. These immigrants are eager to create an atmosphere detrimental to the existence and stability of the indigenous people of Northern States The regional indigenous people irrespective of any caste and creed are gradually forced to be made cipher on account of their deplorable pecuniary condition lack of diplomacy. None can say what their planned strategy is. Whether it is a prelude to expand the territorial base or to gain supremacy in the region. The problems, as cropped up, could have been averted, if the Government of India would have deported the unauthorized and illegal entrants, taking temporary shelter in the Indian soil to get rid of the violent Pakisthan militants, immediately after the liberation of Bangladesh. The people of the eastern sector of the sub-continent are now in doldrums for such imprudent act of the centre. A section of the indigenous people is after the power mongering exercises. The greed of power has the consequential aim to amass the black money. This is either for autonomy of the region or for separate statehood. The expenditure incurred is nominal, compared to the fund provision and the balance is normally pocketed. A section of the people is very much adamant over the question of independence and sovereignty. Presently, the ultra forces, like United Liberation Front of Assam ( ULFA) are adamant to acquire the independence of Assam with the banner of sovereignty. A section of Naga and Bodo militants are maintaining the same moto. There is dearth of knowledge on the concept of independence or sovereignty, as it is believed. The sentiment of cessation from the national net work may crop up, when the mass people of any region feel neglected by the apex Government, the prosperity of the same is legging behind or the political justice is not awarded to the people in representation and share of power in the apex Government. The people of Bangladesh experienced such odds and they initiated revolution within the soil, which ultimately succeeded. Of course India played a pivotal role in such exercise. Such an odd is not visible in Assam. Though initially, there was a sloth in the process of developmental activities, priority has been given after the Chinese aggression more particularly after six years of foreigners’ drive movement. The developmental works are being carried on in a phase manner on priority basis. This played a notable role to do away with the profound grievances of the people. The question of independence is not designed with any logical, legal and practical approaches and is, in fact, superfluous. The independence of Assam is not a matter of joke, as it is surrounded by other eight adjoining States and the buffer State Bhutan between India and China. Moreover, the ability and skillfulness of the independent seekers are to be reckoned. The screen of the Television and the circulated news media well ventilate what the role of 14 elected members in the Lok Sabha and 7 elected members in the Rajya Sabha. They are mostly the silent spectator within the four walls of the Houses of Parliament in the national and international debates. What sorts of qualitative outturn can be expected, if Assam is awarded independence? The ultras know how to kill innocent people, extract money by way of kidnapping and threatening. They lack proper diplomacy and ideology; otherwise they would not have taken shelter in Bangladesh against whom their primary modus-operandi was there. They have no idea or capability to run the administration. A chaos and conflict will naturally take place and the foreign power will take full advantage to over throw the Government and capture power. One must recall the eventuality at the end of weak administration in the Ahom regime of early 18th century, which helped the British traders to expand the trade base and to install power. The main leadership of ULFA have been apprehended and put behind the bar, but they are still vociferous over the question of independence of Assam. They are advocating for dialogue on the vital question of sovereignty or to arrange referendum to seek mass mandate over the question of liberation of Assam. Such referendum can not be expected to be free and fair. The mandate at gun point will get upper hand. The people of Assam irrespective of any class, creed and cadre are already the worst victims in the reign of terror for last 30 years. None has the moral support for the so called independence and sovereignty. The most tough question of this day is creation of more Statehood to provide political berth and economic soundness to a section of the aspirants. The Indian sub-continent already have twenty eight numbers of part States and seven numbers of Union territories. The part States have been provided with adequate power of autonomy in the State within the frame work of the Constitution of India. The Constitution vested some reserved -indispensible power to the Centre to ensure unity and integrity of the country. It has, of late, been noticed that there have been tremendous moves at different states for bifurcation of the existing States and creation of separate States. Telengana, Gokhaland, Bidarva,Harit Pradesh, Bunderkhand etc. are raising their demands for creation of new States. In Assam Bodo, Karbi, Dimacha, Garo are making agitation over the question of creation of new States. The Koch Rajbangshi people of undivided Goalpara district and five or six districts of West Bengal are demanding separate State under the banner of Kamatapur. As published in the news media, there is a base of such demand following an agreement of merger of Coochbehar territory with India, signed by the then King Jagadipendra Narayan Bhup Bahadur and the Government of India, which has been placed before the Hon’ble Supreme Court of India. It is not unlikely that the people of muslim majority areas may sometime come up with such demands in future. The last bifurcation vis-à-vis creation of new States took place on 15.11.2000. Ignoring all other instant claims, the Government of India recently decided to create a new State ‘Telengana’ in bifurcation of the State ‘Andhra Pradesh’. This apparently raised furor amongst the people of Andhra Pradesh and in protest against such a decision of the Government of India, numbers of cabinet ministers, elected representatives resigned by creating a political crisis. Not only that, voices of protests Bundhs episode etc. has already evoked from other parts by the aspirant for statehood. An unrest situation may as well crop over the question of haphazard decision. The creation of new State is a theoretical aspect. The practical aspect must be looked into. The resource potentiality, resource generation and resource mobility are the primary factor for creation of new Statehood. When a State is created, all sorts of requisite infrastructure must be available. In no case, such new State should be a burden to the centre, but a self dependent. In our view, when there were numbers of demands, Centre’s decision to create unilaterally the State of Telengana can not be termed as an act of maturity and prudence.

AN END TO BANDH CULTURE ?

2010-01-27T05:57:00.001-08:00

A Division Bench of the Gauhati High Court, consisting of the Chief Justice Justy Chalemeswar and Justice A.C.Upadhaya recently delivered a historical judgment declaring the frequent bundh culture in the State of Assam as illegal. The judgment followed on the Public Interest Litigation petition fled by a retired police officer and Ex-Member of Parliament Ataur Rahman, a profound social worker Suchibrata Roychoudhury (now dead) and the renowned journalist Mrinal Hazarika seeking a verdict of the highest legal forum of the State covering the north east states of the country, in as much as such bandh calls are disrupting the normal way of life. The labour classes of people can not earn their daily wages, which continues some time for days together. Naturally, such unfortunatepeople have to remain in hunger for deficiency of money power for purchase of food. The school and college students can not attend their classes and there is untold loss in the educational spheres. The office goers from outskirt and distant areas, can not attend offices and the functioning of the offices remains paralyzed. Even, if some office goers take attempt to attend the offices; they have to come across various threats including for life. The bundh culture is spreading so heavily and rapidly that it has obviously become a curse in the civilized society. The bundh callers fail to realize and appreciate the consequential ill effect of the bundh in social life. They make misuse of the constitutional right, namely, right to speech and expression or right to association by extending it to bundh culture. The bundh culture is intended to reflect the act of protest, which is considered to be unwarranted and odd designed. In such exercise, there is dearth of knowledge towards evaluation on the concept of democracy as well as the republican thought. The bundh culture got priority at the time of foreigners’ movement in Assam in 1979 at the behest of the All Assam Students Union, associated by other ingredient parties and organizations under the banner of the ‘Ganasangram Samitee’. Even they took the self-designed administrative power to declare “Janata Curfew´ to enforce such bandh. They disassociated themselves from participating in the National programmes like Independence day, Republic day and forced the mass people to refrain from participation in such holy functions of the auspicious days. What this people used to do after coming to the power is indeed a shameful part of the history. This, in fact, has been made precedence and the agitators and the bandh callers of various groups or organizations are following the suit. The United Liberation front of Assam, a part acts of other brutal and unlawful activities, simultaneously uses to declare bundh and the innocent people have no other alternative, but to abide by such unlawful- designed calls. When the ‘ Assam Bundh’ and ‘Bharat Bandh’ calls are operative, the ’district bandh’ and ‘regional bandh’ are as well parallely gaining the momentum. There are various types of demands like providing autonomy, creating Statehood and even acquiring independence and sovereignty. That means, all are hankering after power to establish themselves in the power scenario. There is least thought for the welfare and upliftment of the common people, but to install in power- no matter whether the unity and integrity of the country get any set back. This bandh culture has spread so speciously that there no surety to reach the destination of perambulation within the time bound programme. The time factor is now irrelevant, but the bandh factor has to be reckoned in every step and given due cognizance. These unhealthy and unhygienic bandh culture; on the other hand, have been prominently cubing the mobilization of resources and the State economy has been put to a doldrums. The road-bandh being an inherent and integral part of the bandh culture, there is unhealthy and irritating blockade of transportation of goods and passengers. In fact, Assam is solely dependent of the essential commodities and other important commodities from places out side the State. The movement of goods to the other six sister States takes place through the corridor of Assam and naturally the economic activities of the said States get jeopardized. When the road blockade takes places, there is dearth of import with consequential shortfall of supplies. It is well known that price hike irrespective of any commodities have been spreading so widely like wild fire that there is unbearable murmuring of the incapable purchasers seeking solution. The benign Governments at the State and centre are keeping mum and practically remained cipher. We hail the verdict of the High Court, which provided relief to the mass people of the State. The verdict of the court will not , however, be enough, but there must be law to enforce the verdict incorporated with penal measures. The ball is now at the court of the Government. If the Government thinks seriously and sincerely for the welfare and prosperity of the people, the bandh episode will have to seek adieu soon and the people can confidently hope that the end will be knocking at the door.

TAX ON INCOME AND AGRICULTURAL INCOME

2010-01-27T05:54:00.000-08:00

‘Tax’ means ‘the money that must be paid to the State; charged as a proportion of personal income and business profits or added to cost of some goods and services’ ‘ Income’ means ‘a money received during a certain period for work or from investment.’ “Agriculture’, on the other hand, means ‘a science or practice of farming.’ ‘Tax on income’ is thus money to be paid on the profits earned for works or investment, while; ‘Tax on agricultural income’ is ‘the money to be paid on profit earned on the practice of farming.’ ‘Tax on income’ is a subject, administered by the Government of India (Central Govt.) through the machineries at its disposal. Article 246(1) of the Constitution of India (Constitution) empowered Parliament to make enactment of laws on the subjects, specified in Seventh Schedule- List I (Union List). ‘Tax on income other than agricultural income’, as occurred in entry 82 of the said Schedule is thus the subject of levy of tax by the Central Govt. In fact, the measure of tax on income in India was introduced in British Parliament long back in 1860 to bear the economic burden on account of armed revolution of the First War of Independence against the British regime. The reasonableness of such measure of income tax adopted, were assigned as, it is a (i) canon of ability for paying such tax; (ii) canon of certainty; (iii) canon of convenience and (iv)canon of economy. There was, however, no such tax from 1865-67 on account of public murmuring. The Income Tax Act, 1886 was brought out to build- up licence tax. The Income Tax Act, 1922 continued to be operative in post independent period too. After the Constitution took birth on January, 26th, 1950, the said Act continued remained in force with the safe guard provided under the banner of Article 277 (Savings) of the Constitution. The Income Tax Act was remodeled and it was passed in the House of Parliament in September, 1961 and the Indian Income Tax Act, 1961 (Income Act) thus came into effect. It is, in fact, a tax only on income, profits or gains and not on the capital, whether original, substituted or increased. The salient features are, therefore, - (i) income tax is only a charge on income and not the capital; (ii) the method of charging tax on income and capital gains is different; (iii) in computing the taxable income of a business, profession or vocation, only the revenue expenditure and not the capital expenditure is deducted from the trading profits. ‘Tax on agricultural income, is a subject, administered by the State Governments through the tax machineries of the State. In 1925 the Indian Taxation Enquiry Commission opined the justification of creating a measure of tax on agricultural income, but the same was not readily materialized. The Government of India Act, 1935 as well incorporated entry 41 in the Seventh Schedule of Provincial Legislative List to facilitate introduction of tax measure on agricultural income. The measure of tax on agricultural income was thus introduced and the Assam Agricultural Income Tax Act, 1939 (Agricultural Act) was enacted by the then provincial Legislatures of Assam operative from 1.4.1939. After India achieved Republican character in 1950, entry 46 in the Seventh Schedule of the Constitution provided power to the Legislatures of the State to enact law on the ‘Taxes on agricultural income tax’. The 1939 Act, however, continued to be operative by virtue of savings provisions in Article 277 of the Constitution. It is worthy to mention that within this long spell of 70 years, a number of amendments of the Act took place following administrative needs and in consideration of public interest. ‘Tax on income’, as defined in clause (29) of Article 366 of the Constitution ‘includes a tax on the nature of an excess profits tax’, ‘ Agricultural income’ as defined in clause (i) of the said Article means ‘agricultural income, as defined for the purpose of the enactments relating to Indian income tax.’ The Constitution thus maintained silence to provide independent and categorical definition on the term ‘agricultural income’ and it is kept dependent on the Income Act. The definition in the Income Act incorporated that ‘the income that is derived from the land of agriculture’. The tax on income and the tax on agricultural income are levied taking into consideration the income derived in the previous year subject to deduction of the amount, admissible under the relevant Acts out of the total quantum of income derived. Though the main theme of the agricultural Act is that, it is a tax on agricultural income, but some deviation has been made in the matter of determination of the quantum of the agricultural income of tea. Income derived from tea is to be bifurcated as income on agricultural activities and on trade activities. The ratio maintained thereof is 60 : 40- that is, 60 percent on agricultural income and 40 percent on trade income. This principle is exclusively maintained in case of tea only and not on other production like paddy, pulses, wheat, sugar cane etc. where also simultaneously question of agriculture and trade are involved. There are good numbers of tea gardens, which produce green tea leaves and effect sales to the black tea manufacturing industries. It is not exactly known how they are roped in the tax net for purpose of levy of tax on income and agricultural income in accordance with the designed ratio. The tax on land, with the measuring scale of production of green tea leaves in smaller tea gardens, are not levied directly, but on the sales made to the manufacturing tea gardens, which purchase for production of black tea. The measures, adopted seem to be fallacious. The imposed restriction on the levy of 100% tax of tea obviously created an acute set-back in the revenue generation exercise of the State. In fact, tea industry is one of the few limited industries of Assam. This aspect of law requires a rethinking for rationalizing the fiscal disequilibrium at par with the income of the other agricultural commodities. The measure of tax, as introduced by the erstwhile provincial legislature of Assam and continued for long 70 years provided ample power to the Agricultural income tax authorities to administer the Act, that is, levy of tax and other allied matters. Over the head of such ardent vested quasi-judicial power, the exclusive power of determination of the quantum of total income and bifurcation thereof has been vested upon the income tax authority, causing a double standard in the power exercise scenario. It, no doubt, amounted to be a centralization of power the identical State law under the statute of law by way of encroachment and seems to be irrational and pre-judicious. The Agricultural Income Tax Rules laid down some discretionary power to agricultural authority for scrutiny and examination on such determination and bifurcation in such cases, when circumstances warranted so. The Supreme Court of India, of late, quashed the validity of the said State rule. This has the consequential effect that the State tax authorities are to remain cipher and to act like rubber stamps on the unitary decision of the central authorities. The quasi-judicial aspect in the agricultural Act thus practically intended to seek a good bye. The Head Offices of limited numbers of industries, installed in Assam, like tea industries, oil industries, coal industries etc. are mostly located at places out side the State of Assam. The taxes on income are generally deposited by such industrial entrepreneurs out side Assam. The concerned States in which such tax revenue deposits are made use to get share of income tax, as envisaged in Article 270(2) of the Constitution. Assam is thus deprived of such benefit even though the base of production, manufacturing and trade activities is totally within the parameter of Assam. The sensitive sons of the soil of Assam, urge upon the Government of Assam to consider this revenue generation issue and raise this vital pertinent question before the central Govt. so that an amendment of the Constitution is made to ensure augmentation of revenue to this economically backward State.

TEA GARDEN HEAD OFFICES SHIFTING TO ASSAM IS IMPERATIVE

2010-01-27T05:52:00.000-08:00

The Assam Legislative Assembly adopted an unanimous resolution on 2nd April, 2002 demanding that the big tea companies, having tea gardens in Assam, are to shift their Head Quarters to Assam so that the local youths can get preference in appointment and other ancillary facilities. For that purpose, it decided to send a team of State Legislatures led by the Speaker of the Assembly to put pressure on the Government of India for mobilization of the process. It is not known what was the ultimate out-turn, but there is reason to believe that that it was simply a castle in the air.
There are about 800 tea gardens in Assam having there industrial base side by side. The big tea companies have their Head Offices at Kolkata, will be not less than 90% of such industrial based gardens, existent in Assam. The functioning of the gardens are carried on by remote control devices from Kolkata and the local management in Assam are kept in the dark about the modus-operandi in relation to the sales and purchases exercise effected from the gardens, employment avenue and other allied matters. They are to remain practically cipher in all respects. There can not question of ‘what’ any ‘why’. In true sense, the Head offices owe little allegiance to the State, bother a little for the development and welfare of the people of Assam, They use and utilize the soil of Assam, as the grazing grounds of the company for production and manufacture of tea keeping the aim in view to enrich and enlarge their assets and fiscal resources. Several moves were already made requiring the tea companies to shift their Head Quarters from Kolkata to Assam, but it reached to the deaf ears without any positive and fruitful reactions.
The tea lobby, as it appears, is very much powerful in Assam. They play the pivotal role in the elections scenario vis-a-vis installation of the party Governments to power and even dare to make imposition over the functioning of the Government. The Government in power, it seems from experience, can not over rule their imposed counsels or to be tough to them thereby to invite any displeasure. Neither the Government of Assam nor the Government of India is keen to force or make any imposition to the tea companies to shift the Head offices to Assam. This, they feel, may be abusive in as much as it would make way to curb the fundamental rights, guaranteed by the Constitution of India. The only way, as we believe, is that there should be effective dialogue, assertive pressures and keen pursuance by the mass people of Assam to yield any productive yields.
Avenue of employment :The Head offices of the tea companies formulate the recruitment policy of the respective gardens and make proper implementation of the same through the machineries installed in Assam. In such exercise, the youths of Assam are mostly deprived of any executive, technical or other important assignments in the tea gardens. There is no proper and proportionate representation of the youths of Assam in the Head offices of the tea companies, which are being run at the cost of earnings, derived from the soil of Assam. In that way, they project their indifference and callousness and obviously fail to discharge their obligations not only to the State but to the mass people of Assam. The acute unemployment problems could have been minimized to a great extent had the tea companies extended their healthy and sympathetic gesture to do away with the same.
Purchases of goods :The tea gardens of Assam are not empowered to purchase any goods in Assam. The Head offices make it a prevalent practice to purchase the motor vehicles, machinery, plants, equipment, production and packing materials and other requisites at Kolkata or some other places to the best of their best choice. It was pointed out in the Legislative Assembly at the relevant time that out of such 256 items purchased from places out side the State of Assam, the purchase value of tea bags alone came to Rs. 32 crore in a year. The way of such divergent trade activities adopted, is, no doubt, quite detrimental to the interest of the usual trade practice vis-à-vis healthy growth of economy in the form of revenue in Assam.
Entry tax :A measure of tax on the entry of goods was introduced in Assam by way of enactment of the Assam Entry Tax Act, 2001.The said Act was subsequently repealed consequent upon some legal controversies and a fresh law was enacted from 1st June, 2008. If such items embodied in the entry tax net of Assam, are imported on purchase for use or consumption by the tea gardens, the revenue generation is likely to be ensured and the heavy drainage of revenue in the name of purchase in other State is expected to be averted. It is felt that the tea companies will ultimately prefer to exercise a reverse course of action vis-a vis to purchase such goods, as are available in Assam to make wide flow of revenue to the State Coffer. Of course, the goods, which can not be had in Assam are to be purchased from places out side Assam and there is no other alternative to that.
The tea garden owners are extracting money from Assam soil and making investments of the heavy profit amount, earned thereof, in places out side the State. A dearth of interest is always in sight in their minds for the development and prosperity of Assam. In economic spheres too, the State fails to get the legitimate revenue on this pretext or that.
It is high time that the Government is to assert its stand and impress upon the tea gardens, augmenting the resources from the soil of Assam to be aware of their obligation and allegiance for the development of Assam, which is still maintaining acute backwardness, compared to others States in the Indian sub-continent. The voice of the people will equally be a basic way of action in compelling such tea companies to change such modus-operandi in the long run.

(Mrinal Kanti Chakrabartty)
“Rudrs Bhawan”R.G. Barua Road, Lakhimipath
Guwahati-24

AN IMPERATAVIE NEEDS

2010-01-27T05:46:00.000-08:00

‘Green tea leaves’ are like the ‘raw gold’ and the ‘black tea’ are the ‘precious ornaments’. The tea cultivation in Assam was started from the early part of the eighteen century. The East India Company before taking over the helm of power in Assam discovered numbers of tea plants in the jungles of Assam. They could guess that proper cultivation of tea and utilization of the same by industrial exercise will, no doubt, be a lucrative business. The yield of a substantial financial resource would thus be knocking at the door. Actually tea is one of the factor, which tempted the British Raj to install power in the hazardous area.
Tax on tea : On sales- The first measure of tax on tea was introduced from 1.4.1939 on the income derived from agriculture. The measure of tax on the sales of tax is a subsequent exercise. In 1970, a further measure of tax was adopted on the sales of tea in the Guwahati Tea Auction Market through the brokers. Again, from 1.1.1990, a new measure of tax was adopted on the land and productivity of green tea leaves was reckoned as the measuring scale for the purpose of levy of tax on the tea garden lands.The present tax structure on the sales of tea, an indigenous product of Assam, is as below:-(i) When sold locally in Assam - @ 5 paise in the rupee at the point of first point sale of tea in Assam under the Assam Value Added Tax Act, 2003 (VAT Act). Though the basic structure under the VAT Act was to levy tax at every point of sales in Assam subject to refund of tax paid at the point of the previous purchases, a departure has been made in the case tea and some other allied items like crude oil, petrol, diesel, petroleum products, coke, biscuit, liquor etc., where the tax measure has been introduced at the point of first sale in Assam.(ii) When sold in the course of inter-State trade or commerce- 2 paise in a rupee to a registered dealer and 10 paise to other than a registered dealer.(iii) When sold in the Guwahati Tea Auction Market- 2 paise tax in a rupee payable by the brokers. (iv) When such tea, purchased through the brokers either in the auction market is re-sold to the registered dealers in the course of inter-State trade or commerce- the tax paid is reimbursed.Such measure of exemption of tax on tea sold in the Guwahati Tea Auction Market and subsequently sold by such purchasers in the course of inter-State trade or commerce was introduced long 40 years back with a view to encourage proper growth of the auction market. Of course, there seems to be profound deficiency in the proper functioning of the said tea auction market at Guwahati.
Stock transfer of tea, a tax free deal :The practice of transfer of stock of tea to the Head offices or to the agents from the tea gardens of Assam is very much in vogue in the tea business scenario of Assam. It proved to be a farce in many cases. It may be used a legal weapon to evade payment of tax on the sales of tea made under the coverage of stock transfer of goods some times by way of manipulation of the documents. In fact, the Head offices of many tea companies control the whole episode of sales and the stock transfer of tea. It was well established in many cases that such transfer of stock was actually the sales in the course of inter-State trade or commerce in letter and spirit, but a foul play is adopted to evade payment of taxes by a camouflage exercise. If the taxing authorities accept such modus operandi of the tea companies as a challenge and go ahead in operation to unearth such modus operandi, many odds is likely to be unveiled and the mischief caused to this poor State by arresting the tax dodging activities. A substantial amount of revenue would have consequently poured to State coffer making way for augmentation of the State revenue. The active vigilance and mobilization in the field of activities would have totally cracked down such mal-practices with resultant positive out turn of revenue generation. Such a constructive measure is, however, absent. The Head offices of many tea companies, as it is found from experience, are directly involved in such unhealthy episode at the cost of revenue of Assam. A complete up-rooting of such episode may be possible, when the Head offices are shifted to Assam.
Tax on tea garden lands :The Government of Assam enacted the Assam Tax (On Specified Lands) Act, 1990 for levy of tax on tea garden lands taking into account the production of green tea leaves as the measuring scale, as discussed above. The rate of tax was initially fixed at 0.50 paise per kilogram of green tea leaves tea produced. A section of aggrieved tea companies challenged the validity of the Act before the Gauhati High Court and the Supreme Court of India pleading such exercise as illegal and unconstitutional. While the cases of litigation were pending before the Courts of law, the Government of Assam suddenly signed a Memorandum of Understanding (MOU) with the representatives of such tea companies, which had the consequential effect of abrupt reduction of the rate of tax from 0.50 paise to 0.18 paise. It is pertinent to mention that the Government of West Bengal also faced similar challenge for introducing such an identical measure of tax. The patience would have yielded a positive result, as verdict of the Supreme Court was in favour of introduction of such tax measure. The impatience and hurried decision forced the Government of Assam to surrender before the tea lobby and to depart from its original stand, causing an irreparable loss of revenue at the primary stage. Of course, the State Government has now raised the rate of tax to 0. 20 and 0.32 paise at different stages. The tax relief provided to the tea gardens owning lands not exceeding 40 hectares has also been withdrawn. The present measure adopted for levy of tax on land below 40 hectares to the tea the industrial units on sale consideration seems to be a controversial exercise.
A disparity between the production of green tea leaves and manufacture of finished tea is sometimes noticed, as the figures disclosed to the State tax department and to the Central Excise department records a big sphere of gap. An investigation and application of proper check tactfully may unveil many odds.
Tax on Agricultural Income :Article 246(1) read with entry 46 of List-II-State List of the Constitution provided exclusive power to the State Legislature to introduce the measure of tax on agricultural income. Article 366(1) of the Constitution defined agricultural income, which means agricultural income as defined for the purpose of the enactment relating to Indian Income Tax. The ball was thus thrown to the law making body of the Union. The definition of agricultural income, inter-alia, laid down two fold of income in the case of tea –(i) out of cultivation (ii) out of processing and trade activities. The specified ratio of income was determined at 40% for the Centre in the form of income tax and 60% for the State in the form of income on agriculture. The State can thus levy tax on 60% percent of income and that, too, left un-assessed by the income tax authorities without raising any question of dispute or dissention. The Government of India thus shares a substantial amount of revenue out of such agricultural income on tea. We remember that Sri Prafulla Kumar Mahanta, the then Chief Minister of Assam strongly urged upon the Government of India for removal of such discrimination in case of tea alone and pleaded for raising it to 100%. The fate on the said move is immediately not known. It is hoped that such demand should be revived once again for the interest of this poor State.The maximum rate of tax on agricultural income came up to 83 paise in a rupee in early seventies. The collection of such tax topped at the relevant times. Gradually the rate of tax was reduced to 30 paise in the rupee and other benefits and relieves were also provided in this respect. The result is that the collection of tax started receding. In making such relaxation, the interest of the tea companies was given priority at the cost of loss to the State.
State of Assam is deprived of the share of income tax :The Head offices of many OF THE TEA COMPANIES USE TO PAY INCOME TAX ON THE INCOME EARNED ON TEA, PRODUCED AND MANUFACTURED IN THE SOIL OF ASSAM, AT KOLKATA. UNDER ARTICLE 270(2) OF THE CONSTITUTION OF INDIA, THE GOVERNMENT OF WEST BENGAL USE TO GET THE SHARE OF SUCH INCOME TAX. IN THAT WAY ALSO, ASSAM IS DEPRIVED OF A SUBSTANTIAL AMOUNT IN THE FORM OF SHARE OF INCOME TAX ANNUALLY.IT IS PERTINENT TO STATE IN THIS CONTEXT THAT THE HEAD OFFICES OF THE OIL COMPANIES AND MANY OTHER INDUSTRIAL WINGS, CARRYING ON BUSINESS IN ASSAM, ALSO LIKEWISE USE TO PAY SUCH TAX ON INCOME OUT SIDE ASSAM ON THE PRETEXT THAT THE HEAD OFFICES ARE OUT SIDE ASSAM. IT IS THUS CLEAR THAT THE TEA COMPANIES IN ASSAM ARE ENJOYING THE MAXIMUM BENEFITS, BUT THEIR CONTRIBUTION TO THE STATE IS NOT UPTO THE MARK. THE FISCAL DISEQUILIBRIUM HAS REACHED TO DOLDRUMS THE STATE ECONOMY IS PRACTICALLY PARALYZED. IT IS HIGH TIME THAT THE MASS PEOPLE OF ASSAM SHOULD RISE ON THE OCCASION AND COME UP HARMONIOUSLY TO PROVIDE SAFE GUARD OF THE GENUINE CAUSES.
(Mrinal Kanti Chakrabartty) “Rudrs Bhawan”R.G. Barua Road,
Guwahati-24

MOUNTING PRICE HIKE CAUSING FISCAL INDISCIPLINE AND ECONOMIC INSTABILITY

2010-01-27T05:41:00.000-08:00

‘Limited income’ but ‘unlimited expenditure’ has the consequential effect of unhealthy economic imbalance in the day to day way of life. Apparently, a vacuum has been created in the smooth life standard of the people. Assam, a part State of the Indian sub-continent has extensive agricultural lands, mighty rivers with their un-reckonable tributaries, huge numbers of beels, ponds and water pools, but, in fact, the austerity of life style can not be maintained out the agricultural products and fish population derived out of lands and water pools. The people have, therefore, to depend largely on the imported food staff and fishes from places out side the State. The raw materials like jute, superi, hides and skins can not be utilized in converting into finished products due to the dearth of industrial base. The raw materials have thus to be disposed of at a cheaper value paving way for ardent and unlimited fiscal gain by inter- State industrial - giants and the resourceful business magnets. The State of Assam is deprived of the legitimate pecuniary benefits. The reasons of poor agricultural outturn out of the lands are of many folds. The methods of cultivation applied in Assam, are very old and unscientific ones. Application of modern devices of cultivation by tractors, power tillers and of like is very rare. The manures used in the field by traditional burning of tree-leaves, paddy roots or application of cow dung are the cultivators’ normal habits. The chemical fertilizers are applied by a class of well to do people and the same are almost out of the reach of the common cultivators. The irrigation system is not upto the mark. Draughts play a vulnerable role in damaging the products. The century- backs ‘harrows and ploughs’ are the main agriculture implements in Assam. In other States, the application of modern implements ensures at least four types of cultivation in a year with yields of substantial products, while in Assam, more than two crops products in a year can not be expected. The products are also in most cases divisible amongst the land lords and the cultivators and such shared production becomes insufficient. The total area of Assam is 78,438 square kilometer. The cultivating land will be hardly 1/5th of the total area, as the hilly areas rivers and other water pools, townships cover a plenty part of the total area. The population of the State as per 2001 census is 2,66, 55,526 nos. The areas, covered for production of different types of crops with the quantities of production are, as below : *(a) Areas of production 2004-05 2005-06 +(b) Quantities of production (a) Rice (different types) 2383000 hectare 2420000 hectare (b) “ 3470000 Tonnes 3552000 Tonnes (a) Cereals “ 2474000 “ 2497000 “ (b) “ 3556000 ‘ 3624000 “ (a)Food crops “ 2582000 “ 2597000 “ (b) “ 3617000 “ 3680000 “ (a) Oil seeds 287000 “ 254000 “ (b) “ 147000 “ 110000 “ (a) Fibres 64000 “ 63000 “ (b) “ 436000 “ 605000 “ (a) Fruits & Vegetables 164000 “ 154000 “ (b) “ 1608000 “ 1314000 “ (a) Other misc. crops 131000 “ 129000 “ + Cocoa nuts, as included in oil seeds are in term of million nuts, cotton, mesta, as included in term fibres are 170/180 kg in each bale, arecanut as included in misc. crops is in term of cured nuts and sugar cane is in term of cane. The current figures being mot readily available there will not be much variation of the figures exhibited above. The goods so produced, can not normally meet the growing requirements of the ever increased population phenomena and hence the import of the commodities becomes imperative. Notwithstanding that the fishes of different types have the roaming beds in the rivers and tributaries, the number and area of fisheries in Assam in 2006-07 were, as follow:- Registered Beel - Numbers 430 Area 602215 Hectares Ponds and tanks “ 278755 “ 38767 “ Unregistered Beel “ 766 “ 40600 “ Swamp and waste land “ 9852 “ 39240 “ Registered river fisheries 177 “ - The production of Fish seed in 2006-07 is 2062.61 (million numbers) and that those of fishes were 1,81,479 tones. Obviously, therefore, such commodities can not cater to the growing needs of the people. The question of import has thus gained the momentum. In such import exercise, price element leaps no bound. The high cost at source, the cost of transportation, the whims of the administrative raj, the touts’ foul play are the main factors for increase of heavy price. Besides, the question of the margin of profit at the different levels makes way for such mounting price rise, which some times reach four times of the price at the source. The price of the essential commodities has gone to such a high degree that it is practically beyond the reach of the common people. The rich classes of people can effort easily, the poor classes of people survive some how.They have necessity, but no aspiration. But the acute victims are the middle classes of people, who can not accommodate in any way. The fish price is going to be higher and higher. Even the small sizes of fishes cost Rs. 400.00 per kg. Assam produces abundant vegetables, but the prices of the same have simultaneously gone high. There is margin of four times growth of price in urban areas, compared to the rural areas. The Government of Assam has not finally given effect to the revised pay scale to the employees. So, naturally, the employees can not stand before such heavy price rise. What is generally done is that they take resort to acquire black money to over come the challenge of grave economic crisis. So, the fiscal indiscipline and a financial instability has gained the momentum. It is high time that Government should awake up from deep slumber and take remedial measure to restore stability.

(Mrinal Kanti Chakrabartty)
“Rudrs Bhawan”R.G. Barua Road,
Guwahati-24

CREATIVE POLITICAL PARTY IN POWER SCENARIO

2009-12-06T03:48:00.000-08:00

Evolution is an important phenomenon in the global politics. It may be a product of revolution or an automatic exercise. The global nations are having immense constituents to carry on the power scenario. The fundamental ingredients are that- there must be a territorial base, population, a Government and sovereignty. India is recognized as a Sovereign, Socialist, Secular, Democratic- Republic in the global map. The federal structured territory of India has as many as twenty ninth part-States with six Union territories. Assam is one of the part States of the Indian sub-continent, having a popular Government to rule the State subject to the powers exercisable exclusively by the Government of India by enactments made under Article 246(1) read with List-I (Union List) of the Seventh Schedule of the Constitution of India (Constitution). An evolution in political scenario is a time bound factor to ensure a healthy democratic set- up of Government for curbing any trend of high-handedness or autocracy by any political party or parties in power either at the national or at the State level. The Indian democracy is having this broad concept. The Congress Party, Janata Party, Janata Dal, Bharatiya Janata Party singly or with the constituents of the alliance parties are ruling the Indian sub-continent. It is noteworthy that no Government was ever over-thrown by any coupe like other neighbouring countries.
Assam, a part of the federal India, has been mostly under the political Government excepting the President Rules on three or four
occasions on account of political instability. The congress party ruled the State continuously since 1947 till the early part of 1978 under the
dynamic stewardship of the following august personalities:
1. Lokopriya Gopinath Bordoloi- 1947 to 5th August, 1950
2. Bishnu Ram Medhi- 1950 to 1957
3. Bimala Prasad Chaliha 1957 to 1970
4. Mahendra Mohan Choudhury- 1970 to 1971
5. Sarat Chandra Singha- 1972 to 1978
The Congress party failed to come to the power in 1978 election and the Janata Party, headed by Golap Barbara became the head of the
Government. This government was short-lived. Thereafter, Jogen Hazarika, the Speaker of the Assam Legislative Assembly formed a party under
the banner of Asam Janta Party and became the Chief Minister. After a few days, the said Government fell and Presidents Rule was imposed.
Thereafter, Syeda Anowara Taimur, Keshab Chandra Gogoi of Congress became the Chief Minister of Assam for short periods. Again President
Rule was imposed, which lasted about one year. In order to avert the constitutional crisis, election has held forcibly without the proper mandate of
the people of Assam, Hiteswar Saikia took over the helm of power after such illegal election of1983. Unrest took place in the soil of Assam
following a mass movement led by the All Assam Students Union (AASU) in collaboration with the constituent organizations under the banner of
Gana Sangram Samitee on the sensitive foreigners’ issue. In fact, Assam became a den of the foreign nationals after the cold and silent aggression
of a section of the Bangladesh nationals since after partition of India. It reached to the climax after the liberation movement in East Pakisthan and
creation of Bangladesh, which is still continuing. Almost all the indigenous people of Assam rose to the occasion, but the Government of India did
not care to make immediate solution though there was heavy blood shed. Ultimately, at the behest of Rajib Gandhi, the then Prime Minister
of India a negotiation was made by a treaty titled as ‘Assam Accord’ in the early hours of August, 15th, 1985. The illegally constituted Assam
Assembly was dissolved and a fresh election was held.
The people of Assam voted to power the newly formed Assam Gana Parishad (AGP) led by the AASU with other constituent ingredients of
the Gana Sangram Samittee and the said party took over reign of Asssam on December, 24, 1985 with the AASU leader Prafulla Kumar Mahanta
as the Chief Minister. Their modus operandi, however, disappointed the people of Assam very soon. They could not drive out the foreigners, the
the first and foremost promise projected in the election manifesto. Rampant corruption gained the momentum. A section of the revolutionist with
arm activities started to create the reign of terror. The Government of India had to promulgate the President Rule to overcome the unruly situation.
In the next phase, the Congress Party came to the power under the leadership of Hiteswar Saikia in 1991. This Government was not at all in
favour of driving out the foreign nationals; rather they were keen provide security of the Vote bank, created by the foreigners. After 5 years , the
people overthrew the Congress regime. The AGP party again came to the power. This time, the performances proved to be the worst. People were
constrained to believe that they have been cheated by this regional party since beginning. The Congress party thus again came to the power in
2001election under theleadership of Tarun Gogoi. Congress party was voted to power for the second time in 2006 as well. People of Assam are
well aware of the mal-functioning of this Government, but they had to exercise their franchise in favour of the Congress party, as they found no
other party choice able party was there.The deteriorating law and order situation, high price rise, rampant corruption is gaining the momentum
in this regime. People of Assam are now the silent spectators to all odds. The Assembly election of Assam is knocking at the door. The question
now arises, who will be installed in the power scenario in 2011 election?
In Assam, Congress party is predominating since the beginning. The AGP came to the power scenario like a comet. There had been
disintegration of the party on a number of occasions on power mongering issues. Though, of late, reunited, the party members could not yet give good bye to the internal disputes and differences for the party stability. The confidence of the people has not been restored, which is evident from the numbers of bye-elections., The Lok Sabha poll of 2009 proved all the exercise futile. The Bharatiya Janata Party was, no doubt, an ideal party, but the inner quarrel and conflict has been detrimental to the unity and integrity of the party. The party is also not well organized in Assam and it is yet to strengthen its base yard. The Leftist Parties are also not very much relevant in Assam politics. It has been seen, of late, that the Autonomous Districts, like Karbi Anglong, North Cachar and Bodo Land have their district base and entity and they are capable to influence the political power scenario of Assam to a great extent. The United Democratic Front occupied a sizeable berth in the last State Assembly election. These parties are thus playing the pivotal role in formation of the Government. No forecast is possible at this stage as to the formation of Government in 2011 election by other parties unless they change their style of functioning and are up and doing to gain the confidence of the mass people.
A regional party has a dire necessity to ventilate the will and aspiration of the people and safe guard the regional interest. This is possible, when the peoples’ trust is bestowed upon the party incumbents. The AGP at this moment with the present incumbents seems to be not to the utter choice of the people. The inner party requires a reformation and renovation with fresh bloods, beset with dynamism and integrity. There must be a grass- root organization with constructive works to win the hearts of the people. A section of the veteran leaders are eager to mend the shortfalls and to come up with the new visions with constructive approaches, but it will be possible, when the grass root level is organized properly and systematically and they are keen to remove the economic disparity of the weaker section with constructive outlooks.

(Mrinal Kanti Chakrabartty)
“Rudra Bhawan”
R.G.Barua Road, 10- Lakhimipath
Guwahati -781-024

Review on Mrinal Kanti Chakrabartty’s book “Jiwan Darshan”

2009-12-06T03:44:00.000-08:00

Review on Mrinal Kanti Chakrabartty’s book “Jiwan Darshan” in “ Asomiya Journalist” Magazine (7th Edition December’2009)

TAX DODGING EPISODE- A CRIMINAL ACTIVITY

2009-07-04T08:49:00.000-07:00

Tax dodging is a unique phenomenon to crush the economic discipline and austerity. Moved in an anti-clockwise motion in the normal and systematic way in the broad economic platform, a tax dodging activity can be well termed as a gross crime in the socio- economic scenario of national life. No applause or appreciation is ever hailed for such unhealthy, polluted, anti-social and anti-economic odds. A harmonious voice of condemnation is always warranted for such undesired workmanship. ‘Necessity is the mother of invention’- this symbolic gospel truth is always existent in the pre- concept of mind of the tax dodgers in the process. When any mal-activity is foiled, frustrated or apprehended, the tax dodgers search out new gallery to adopt new art of tax evasion. Tax dodging activities were very much in vogue in the ancient mythological era, it continues now and shall continue till eternity, of course, with some new, diverted or modified methods worked out in the formulated net-works. The tax dodging episode, in fact, is not a unilateral exercise. Some sort concurrence, connivance or collusion must be there at different angles more particularly with the tax machinery. The famous diplomat and economist of the Mauryya era Kautilya or Chanakya rightly recorded – “Thus, the king shall first reform the administration, by punishing appropriately those officers, who deal in wealth, they duly corrected, shall use the right punishments to ensure the good conduct of the people of the towns and the countryside.” This rigid view was, no doubt, a product of his valued experience and it obviously forms a guide line of the day in the field of economic regime.

In the British era, the tax measures in the States were adopted under the Government of India Act, 1935. Two tax laws, namely; the Assam Agricultural Income Tax Act, the Assam Sales of Motor Spirit and Lubricants Taxation Act were enacted in 1939 in Assam as the maiden venture to make yield of revenue. The tax law on the sales or purchases of goods - ‘the Assam Sales Tax Act, 1947’ came into force from 24.12.1947 in the post- independent period, while the Assam Finance (Sales Tax) Act, 1956 was enacted by the State Legislatures with the vested power under clause 54 of the State List in the Seventh Schedule of the Constitution of India, The Central Sales Tax Act, 1956, a Government of India Act, came into operation from 5.1.1957 under clause 92A of the Union List in the Seventh Schedule of the Constitution. The Central Sales Tax Act, 1956 still remains in force, while the sales tax laws enacted at different times, were repealed and ultimately the birth to the Assam Value Added Tax Act, 2003 took place from 1.05.2005. In fact, the State’s tax resources are generated from nine tax measures with the current tax yield of Rs. 3592.88 against Rs. 2864.44 in 2007-08.

‘Evasion and avoidance of tax are brothers twine’. When there is measure of tax, there is always attempt to evade or avoid tax. The traders try to derive extra fiscal benefits by adopting fraudulent means and thereby indulging the tax dodging activities. Tax collected on the sales or purchases of goods is an indirect one, and the burden of such tax ultimately falls on the consumers. A portion of the sale or purchase is not exposed in the books of accounts and is suppressed with result that the tax due is evaded. With the expansion of trade velocity and trade dimensions, the magnitude of evasion of taxes is gaining the momentum. In the present hi-tech era, the unscrupulous traders use to adopt a unique technique to evade tax through computer devises on which no easy access can be had by the tax machinery. Even odd transactions are removed from the computer at frequent intervals and restored in the C.D. to avoid easy reach of others.

The race of evasion of tax starts at the entry point and ends at the point of sales made to the consumers. Amongst innumerable ways, the import of goods in fake names with fictitious addresses, misclassification of the goods and suppression of sales in fraudulent way are prominently prevalent. A dearth of adequate preventive measures to arrest or avert the multifarious ways of evasion of taxes, has the consequential adverse effect in the revenue generation exercise. The check posts have not been equipped with skilled man- power, requisite amenities, facilities and other allied infrastructure. No compact/ comprehensive platform has been erected for inspection of the goods vehicles, unloading and verification of the goods as well as preserving the seized goods safely in a befitting manner. The lack of the officers’ sincerity, devotion and integrity is another reckoning factor. Pressure or influences at different angles in normal functioning of the officials with some ulterior motive behind, uses to demoralize them. Adequate counter-check in the way side, at the delivery point or at the godown is rarely undertaken. The race thus ends uninterrupted with a negative approach towards the State revenue making the State Coffer an utter victim.

The Value Added Tax (VAT) regime, currently operative in Assam, is a self-designed system of levy of tax with its self -steering wheels. The success in this revenue venture can achieve, only when (i) the traders ensure the correct and accurate maintenance of accounts initially by preserving purchase vouchers, issuing sales invoices, (ii) the interim purchasing traders and the consumers are alert against any foul play in the deals and (iii) the tax machinery keeps proper vigilance on different ways and style adopted for evasion of taxes. Any sloth, lapse or dereliction in maintaining rigidity, harmony, austerity, integrity and transparency, no doubt, pose to be a serious threat to the State revenue generation exercise. The paramount necessity of the day is that the concept of VAT should be made aware to all. The Government of India, of late, is contemplating to replace VAT, by ‘Service and Goods Tax’ from 1st April, 2010. It well construe that there is a ‘but’ in the operative VAT system.
The policy adopted by the Government of India to abolish central sales tax in a phase manner (the 50% of which has already been materialized), is nothing but an act quite detrimental to the revenue interest of the States. The austerity in fiscal discipline has already been cracked and it is likely to be demolished fully, when the policy to do away with the same, is fully implemented. A chaotic condition will be knocking at the door in absence of any liaison or co-ordination maintained in the inter-States deals including stock transfer or export. The scope for levy of consignment tax, as incorporated in the Union List (92B) of the Constitution in 1982, is yet to be implemented by a separate central enactment to avert or prevent any fake stock transfer.
within the ambit and competence. The taxing authorities, as appointed by the Government to assist the Commissioner are well competent to decide the merit of any such pertinent question of law and any imposition made at any corner on the statutory power exercise scenario seems to be an overlapping of jurisdiction or intervening of the powers. The unfortunate part of thing is that even though the Commissioner is said to have directed the taxing authorities to imposed VAT on purchases of Flat with a retrospective effect from May, 2005, that is, from the date of coming into force of the VAT Law in Assam, he has not equipped the taxing authorities, namely; the Assistant Commissioners of Taxes and the Superintendents of Taxes to exercise the powers for registration of the dealers liable to pay tax under the VAT Law, to make assessments of tax to the dealers (except the power of self- assessment) and other allied important powers in the day to day administrative scenarios. The officers, on the other hand, are either without having being unaware of this vital requirements or without being conscious at all on the consequential effect on such unvested power exercise, keen to exercise such unvested powers in the course of their routine course of action presumably without any conviction of mind that the whole administrative system will be paralyzed. When it is well settled from the above concept of law that Flat is not a moveable property and out side the definition of goods, the scope for levy of tax on Flat purchase is not there.
The definition of goods, inter-alia’ laid down that all materials (whether as goods or in other forms) involved in execution of works contract are goods. If the construction of Flats are constructed through the contractors, naturally, the transfer of property in goods involved in such works contract is covered by the definition of sale, which has its obvious Constitutional footings with proper authority of law and the levy of tax on such goods is well attracted. The promoter of the Flats, however, generally come up with strong plea that they construct the Flats out of their own and the question of execution of works contract does not crop up. The actual state of affairs will come to the light on the nature of contract in course of scrutiny and examination of the contract deeds executed between the land ‘owner and the promoter’ and ‘the promoter and the flat purchasers’. It can not be fully agreed that the promoters alone play the pivotal role in the entire Flat construction exercise and there may be some agencies as well to act as contractors. That will be a product of investigation and vigilance. The taxing authorities, it is presumed have the access to some investigation and vigilance.
The materials used or utilized in connection with the construction of Flat are, no doubt, out of the purchases made locally or in the course of inter-State trade or commerce. The taxing authorities have the power to examine the documents and evidences to ascertain whether VAT has been charged against such purchases of goods by the sellers to proceed with as part of duty to ensure charging, payment and levy of tax properly, when such purchased of materials relates to within the State of Assam. If any such goods, covered by the Schedule of the Assam Entry Tax Act, 2008 are purchased from places out side the State of Assam for use or consumption, the taxing authorities have full power to undertake operation in the matter of deciding the liabilities under the said Act and to ensure proper levy and collection of tax. The taxation laws have provided ample powers to the taxing authorities, but such powers are to be exercised within the frame-work of law. Any powers exercised arbitrarily beyond the ambit and competence invites controversy and naturally a catastrophe in the revenue earning exercise becomes inevitable.

(Mrinal Kanti Chakrabartty)
“Rudra Bhawan”
R.G. Barua Road, 10-Lakhimipath,Guwahati-781024
(0361) 2457734
98642-01684

My first experience

2009-06-19T08:01:00.000-07:00

The Internet has been first handled by me. Previously my nephew Rupam Sarma uploaded my articles in my blog on my behalf. Indeed, I feel joy for this first episode in my life. I thank the visitors, who kindly visited my blog, read my article. I am early waiting for their valuable comments on my writings.

KARMA JIWANAR PARISHAR ANTAHEEN

2009-06-17T06:57:00.000-07:00

KARMA JIWANAR PARISHAR ANTAHEEN is an article in Assamese, written by me (Mrinal Kanti Chakrabortty) to make an analysis on the philosophy of human life, keeping in view some
verses of Sree Sree Madbhagawat Geeta. Action in human life comes to an end, when one
breaths his last.
Please click here http://sites.google.com/site/rupamsite/karma

VAT BYABASTHA...

2009-06-17T06:30:00.000-07:00

“VAT BYABASTHA- KSHAMATA PRADAN-KSHAMATA PRAYOG ARU KSHAMATAR ATISHAYYA”- This article is written by me (Mrinal Kanti Chakrabortty) pointing out some draw-backs in the Assam VAT Law, deficiencies in power delegation scenario and excessive exercise of powers by the tax officials.
Please click here http://sites.google.com/site/rupamsite/vat-byabastha

VAT ON FLAT PURCHASE

2009-06-04T06:44:00.000-07:00

Recently a news item was published in the Assam Tribune under the caption “H.C. rejects VAT on Flat purchase”. Quoting a release issued by Assam Real Estate & Infrastrure Development Association, the release said that a Division Bench of the Gauhati High Court ordered the Commissioner of Taxes, Assam not to impose VAT on the purchase of Flats. The release added that recently the tax department started raids demanding that all Flat purchasers are liable to pay VAT with retrospective effect from May, 2005.The fundamental concept of VAT, as envisaged in the preamble of the VAT Law, is that it related to the imposition and collection of tax on the sales or purchases of goods in the State of Assam. Sales and purchases are, in fact, co-related. When there is purchase there is sale and vice versa. No dispute is existent on this concept of law. The basic question is, however, what is goods? ‘Goods’, as defined in the VAT Law means- all materials, commodities and articles and all other kinds of moveable property, whether tangible or intangible and includes, inter-alia, all materials (whether as goods or in some other form) involved in the execution of works contracts. ‘Flat’, as occurred in Oxford Dictionary, means- a set of rooms forming an individual home within a larger building. ‘Building’, on the other hand, is a structure with roof and walls with all requisite amenities and facilities. It is, therefore, a fixed asset and not a moveable property and naturally, it does not come under the purview of the definition of goods. A Flat is conclusively nothing but an immoveable property and as such the definition of goods is not attracted. The order, issued by the Commissioner of Taxes, if any, is thus not within the ambit and competence. The taxing authorities, as appointed by the Government to assist the Commissioner are well competent to decide the merit of any such pertinent question of law and any imposition made at any corner on the statutory power exercise scenario seems to be an overlapping of jurisdiction or intervening of the powers. The unfortunate part of thing is that even though the Commissioner is said to have directed the taxing authorities to imposed VAT on purchases of Flat with a retrospective effect from May, 2005, that is, from the date of coming into force of the VAT Law in Assam, he has not equipped the taxing authorities, namely; the Assistant Commissioners of Taxes and the Superintendents of Taxes to exercise the powers for registration of the dealers liable to pay tax under the VAT Law, to make assessments of tax to the dealers (except the power of self- assessment) and other allied important powers in the day to day administrative scenarios. The officers, on the other hand, are either without having being unaware of this vital requirements or without being conscious at all on the consequential effect on such unvested power exercise, keen to exercise such unvested powers in the course of their routine course of action presumably without any conviction of mind that the whole administrative system will be paralyzed. When it is well settled from the above concept of law that Flat is not a moveable property and out side the definition of goods, the scope for levy of tax on Flat purchase is not there.The definition of goods, inter-alia’ laid down that all materials (whether as goods or in other forms) involved in execution of works contract are goods. If the construction of Flats are constructed through the contractors, naturally, the transfer of property in goods involved in such works contract is covered by the definition of sale, which has its obvious Constitutional footings with proper authority of law and the levy of tax on such goods is well attracted. The promoter of the Flats, however, generally come up with strong plea that they construct the Flats out of their own and the question of execution of works contract does not crop up. The actual state of affairs will come to the light on the nature of contract in course of scrutiny and examination of the contract deeds executed between the land ‘owner and the promoter’ and ‘the promoter and the flat purchasers’. It can not be fully agreed that the promoters alone play the pivotal role in the entire Flat construction exercise and there may be some agencies as well to act as contractors. That will be a product of investigation and vigilance. The taxing authorities, it is presumed have the access to some investigation and vigilance.The materials used or utilized in connection with the construction of Flat are, no doubt, out of the purchases made locally or in the course of inter-State trade or commerce. The taxing authorities have the power to examine the documents and evidences to ascertain whether VAT has been charged against such purchases of goods by the sellers to proceed with as part of duty to ensure charging, payment and levy of tax properly, when such purchased of materials relates to within the State of Assam. If any such goods, covered by the Schedule of the Assam Entry Tax Act, 2008 are purchased from places out side the State of Assam for use or consumption, the taxing authorities have full power to undertake operation in the matter of deciding the liabilities under the said Act and to ensure proper levy and collection of tax. The taxation laws have provided ample powers to the taxing authorities, but such powers are to be exercised within the frame-work of law. Any powers exercised arbitrarily beyond the ambit and competence invites controversy and naturally a catastrophe in the revenue earning exercise becomes inevitable.

Mrinal Kanti Chakrabartty
“Rudra Bhawan”R.G. Barua Road, 10-Lakhimipath,Guwahati-781024
Mobile: 098642-01684

My new article

2009-05-28T04:37:00.000-07:00

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2009-05-28T04:34:00.000-07:00

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2009-05-28T04:22:00.000-07:00

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AVERT DIVERSION OF OIL TRADE-TAX REVENUE SAFEGUARD IS IMPERATIVE

2009-05-26T08:29:00.000-07:00

Tax on oils, namely; crude oil, petrol, diesel and other petroleum products; plays a pivotal role in the revenue generation scenario of Assam. Taxes on sales and other allied matters are governed by the Finance Taxation Administration of Assam by way of enforcement of the enacts introduced in this behalf. The collection of tax revenue during the last three years were, as below:-2006-07 – Rs.3046 crore2007-08 - Rs.2864 ”2008-09 - Rs. 3526 ” The shortfall of collection in 2007-08 was, inter-alia, due to inadequate supply of crude oil vis-à-vis the consequential production outturn and sales threto. However, this has been recouped and took an accelerative turn in 2008-09. If things goes on rightly, the tax revenue collection may undoubtedly achieve Rs. 5000 crore within a couple of years. The trend of extracted crude oil sometimes poses to be discouraging and equally, therefore, import of such crude oil from othe States becomes essential. Contrary to the spirit and intention of the Value Added Tax (VAT) ideology, which maintains the steadfast theme of levy of tax on the every stage of sales of taxable goods, subject to the credit of input tax paid at the point of previous purchase of such goods, the State Legislatures accommodated levy of first point tax in the VAT Law of Assam with exemption of such tax at the subsequent stage on discharge of the onus of payment of tax at source without, however, any relaxation or modification, whatsoever on the basic theme, incorporated in the Law.. Simultaneously, therefore, a two-tier system of levy of tax, that is, one at the multi-point sales of goods and other at the first point, has been operating side by side without any fundamental change of ideology and structure in the VAT Law. Obviously, a clash and conflict between the two in the VAT Law has been apparently visible. In the system of levy of tax on the first point sales of oil products, some relaxation has as well been provided in the case of inter-se-sale deals between one oil company and other, implying thereby that, such inter-se-sales between one oil company and other shall not be held as the first point sales in Assam, but the subsequent sales made to the others or to the consumers shall be treated as the first point sales in Assam for the purpose of levy of tax under the VAT Law of Assam. When a particular Law has been framed for a particular purpose for levy of tax, such a deviation without relaxing of the basic theme or vision of the Law seems to be a unique and an unprecedented exercise of power. Clumsiness, complication and controversy on the system are, therefore, well existent. The ideology formulated and maintained in relation to the non- levy on the first sales in the course of inter-se sales between the oil companies obviously defeated the purpose of levy of tax at the point of first sales in Assam and it is doubtful if such a provision did necessarily warrant. The terms set-forth in the VAT Law to provide the tax relief by the first point seller oil company are : (a) that, the purchaser oil company will pay tax on the sales within the State or in the course of inter states sales under the VAT or the Central Sales Law, as the case may be (b) that, in case the purchaser desptaches such purchased oil products to other States not by way of sales, liability to pay tax on the purchase value of such goods, as provided in the VAT Law shall be cropped up. Despatch of goods to other States not by way of sale is apparently a transfer of stock of goods to other State for sale. Article 286(1)(a) of the Constitution of India restricted any levy of tax for sale out side the State. Section 6A of the Central Sales Tax Law, on the other hand, provided the granting of exemption of tax on such stock transfer of goods subject to discharge of onus in this respect. The propriety of levy of tax on the same goods meant for stock transfer on the purchase value is thus a controversial matter. The rate of tax on the purchase value of oil products meant for stock transfer has been specified at 4 paise in the rupee against the normal rates of tax (@ Petrol Rs. 25.75 paise in the rupee and Diesel Rs. 15.50 paise in the rupee) while in the case of other commodies despatched for identical purpose has been specified as per the prevelant rate of tax, specified in the Schedules of the Act.. So, a disparity and discrimination has obviouly been maintained leaving scope for dispute. There has been mysteriously large scale transfer of stock of oil products by the producing oil companies to other States. The entertainment of such claim of stock transfer is subject to enquiry and achieving satisfaction by the Assessing Officers. The Central Sales Tax Rules formulated some guidelines for the same as well. Whether such transfer of stock is consquent upon any pre-contract of sale is a vital point to be examined and ascertaied as any despatch on the basis of such a contract the character and quality of stock transfer is likely to be defeated. The VAT Law also provided benefit of tax at the concessional rate to the inter-se-purchaser oil companies to make stock transfer and thus to indulge the tax dodging activities by adopting frauduleny way of stock transfer. It stands a routine way of life for a section of traders/cosumers to purchase oil products at lower rates of tax at Khanapara Meghalaya), Bandardowa Arunachal Pradesh) and Dimapur (Nagaland) etc. taking advatange of the geographical location and an acute diversion of trade activities is in sight.It is high time that all these aspects may be considered by the State tax administration and to ensure that no drainage of Assam State revenue is there, but proper safe guard is guaranteed at any cost of augmentation of revenue of the State.
(Mrinal Kanti Chakrabarty)10, Lakhimi Path, R.G. Barua RaodGuwahati – 781024, India98642-01694 (M)

WORKS CONTRACT AND LEASE :: WHETHER VAT COMMODITIES ?

2009-05-26T08:28:00.001-07:00

VAT is a multiple system of tax leviable at every stage of sales of goods made by a dealer, subject to credit of input tax paid at the time of previous purchase of the goods. ‘Input tax’ and ‘Output tax’ are one and the same thing. The tax paid by the purchaser to the seller is input tax, while the tax realised by the seller from the purchaser and paid to the Govt. is output tax. A controversy is prevalent as to whether ‘Works Contract and Lease’ are VAT Commodities and the taxability on such item come under the purview of VAT tax-net.Following a number of litigations and the Apex Court decisions against levy of the tax on Works Contract and Lease, the Constitution of India was amended in 1982 and ‘the transfer of property in goods involved in ‘Works Contract’ and ‘the transfer of right to use any good without transfer of ownership’ have been brought under the purview of the definition of ‘Sales of goods’. The problem thus got a halt and tax on such transfer of property in goods and transfer of right of goods was well being levied under the Assam General Sales Tax Act, 1993. With the introduction of the Assam Value Added Tax Act, 2003, the basic principle of levy of tax, which has been discussed above, the levy of tax ‘Works Contract’ and ‘Lease’ has become irrelevant in as much as the ‘Works Contract and Lease’ maintain their independent entity and separate bearing. The multiple system of sales clockwise or stage wise in such deal become irrelevant. The VAT Act mainly dwelt in the basic principle of levy of tax on every goods at every stage of sale. It has not accommodated the principle of levy of tax on ‘the transfer of property in goods’ involved in ‘Works Contract’ and the ‘transfer of right to use any goods involved in Lease. There ought to have a provision dispensing with the main theme of VAT so as to accommodate this extra-ingredients in the tax-net of Assam. The scope for levy of tax under the VAT Act has been specified in the Schedule attached to the Act along with the category of taxable goods not specified in other Schedules of the Act with the broad term ‘Works Contract’ and ‘Lease’. The basic principle of levy of tax has not been accommodated. ‘Works Contract’ and ‘Lease’ are not the goods and the concept of levy of tax on ‘Works Contract’ and ‘Lease’ seem to be a deviation from the main spirit and intention of levy of tax on the sales of goods in the VAT ideology.Assuming, but not admitting that the legislatures, while incorporating such measure of tax on ‘Works Contract’ and ‘Lease’, intending to levy tax on the transfer of property in goods involved in Works Contract and on the transfer of right to use such goods involved in lease, the rates of tax specified in Schedule at 12.5 paise in the rupee, is not at par with the rate of commodity-wise tax, specified in the other Schedules of the Act. For instance, the rate of tax on the sales of declared goods is always 4 paise in the rupee and it can not exceed the rate declared by the Govt. of India by enactment of the Central Sales Act, 1996 under the authority of the Constitution of India. Pipes of all varieties, pumps, tractors, ships vessels and many other allied articles, pertaining to ‘Works Contracts’ and ‘Lease’ do not have the rate of tax beyond 4 paise in the rupee. Naturally, there has been strong clash between the rate of the tax specified at 12.5 paise involved in ‘Works Contract’ and ‘Lease’ and the rate of tax of goods specified in the Schedules of the same VAT Act. There can not be double rate of tax on the same commodity for the purpose of ‘Plain Sale’ or ‘Sale in the course of Works Contract’ as well as the alleged sales on ‘Lease’. Obviously, discrimination has been well maintained in tax-net scenario under the VAT Act of Assam.The VAT law in Assam provided the measure of Composition of tax on works contract to be exercised by the works contractors at their own option in dispensing with the requirements of making payment of tax on the sales element under the VAT Act. The rate of tax payable as Composition of tax under such Scheme has been specified at 4 paise in the rupee on the gross value of ‘Works Contract’. Apparently, this is abusive of the principle of levy of tax, as enumerated in the Constitution read with the definition of VAT Act.A transfer of property in goods involved in ‘Works Contract’ is liable to be taxed. A tax is leviable on the taxable commodities and not on the exempted ones. Moreover, labour charges, transport charges and other allied charges involved on the works contract can not be brought under the purview of taxability.Transfer of right to use any goods in connection with lease is not a permanent sale of good. It is casual deal without maintaining any continuity. A lease deal on the same commodity may be frequent on the expiry of the specified period of time, but it may not be on chain system. This has provided scope for levy of tax on the same item leased without any scope for any credit of input tax. The legislatures have not specified the items to be taxed on lease and the levy of tax on lease has been made wide and open. It may naturally have an adverse effect to the lessesors and lessee when to be taxed on small deals of lease. No ‘taxable quantum’ has also been specified on lease deals. A confusion always prevail over the question of ‘Hire’ and ‘Lease’, as it has not been well analysed in the system. In absence of that creation of confusion to the dealer and exercise of powers by the taxing authority arbitrarily can not be ruled out in the matter.Our above projection explaining the propriety of taxability in ‘Works Contract’ and ‘Lease’ ought not to have incorporated in the VAT Act of Assam, which maintain a separate aim and object with separate way of functioning. On the other hand, the levy of tax on transfer of property in goods involved Works Contract and transfer of right to use good on lease can not be given a good bye, as a substantial amount of tax revenue pours into the state coffer annually.A separate enactment of law is considered to be imperative for the sake of better tax administration vis-à-vis proper augmentation of revenue of the State without any scope of disputes or controversy.

(Mrinal Kanti Chakrabarty)

10, Lakhimi Path,

R.G. Barua Raod

Guwahati – 781024, India

98642-01694 (M)

Inaugration of “Jiwan Darshan’’ & “Abhibyakti”

2008-12-11T04:18:00.000-08:00

Two books “Jiwan Darshan’’ and “Abhibyakti” written by Sri Mrinal Kanti Chakrabarty, retired tax officer and presently the Sachiv of "Assam Sahitya Sabha" were inaugurated by the Rtd.Justice of Gauhati High Court Sri Dhiresh Narayan Choudhury.Presiding over the function Sri Kanak Sen Deka, President of Assam Sahitya Sabha spoke high of Sri Chakrabarty as his role to restore financial discipline of the Sabha. Sri Choudhury and the guest of honour Sri Adip Kumar Phukan, Editor of Adinar Sangbad, spoke highly on the multifarious field of Socio- economic scenario of Assam.The programme was high light by the Sanskrit hymn and Bhajan Sung by Dr. Arundhati Chakrabarty, lecturer of Arjya Vidyapith College.Any body willing to buy the books may contact:-
Mrinal Kanti Chakrabortty

“Rudra Bhawan”

R.G.Barua Road

10-LakhimipathGuwahati- 781024,

ASSAM,India

Please read the Preface of "Jiwan Darshan" http://sites.google.com/site/rupamsite/jiwan-darshan

2008-12-11T04:16:00.000-08:00

inaugration of “Jiwan Darshan’’ & “Abhibyakti” (left to right) Rtd.Justice of Gauhati High Court Sri Dhiresh Narayan Choudhury, Sri Adip Kumar Phukan, Editor of Adinar Sangbad, Sri Kanak Sen Deka, President of Assam Sahitya Sabha, Sri Mrinal Kanti Chakrabarty(Writer & retired tax officer and presently the Sachiv of "Assam Sahitya Sabha" )

2008-12-11T04:14:00.000-08:00

inaugration of “Jiwan Darshan’’ & “Abhibyakti” at Sangitacharyya Laksmi Ram Barua Sadan of Asam Sahitya Sabha (Guwahati),10th Dec'08

2008-12-11T04:12:00.000-08:00

2008-12-11T04:09:00.000-08:00

BOOKS TO BE INAUGURATED

2008-11-17T05:37:00.000-08:00

Two books in Assamese, namely “Jiwan Darshan” and “Abhibyakti” will be inaugurated on 10th December 2008 at 3 P.M. at the Sangitacharyya Laksmi Ram Barua Sadan of Asam Sahitya Sabha (Guwahati) on the Seventy Second birth anniversary of the writer Shri Mrinal Kanti Chakrabartty.

STATUTORY POWER EXERCISING MACHINERIES

2008-09-02T07:22:00.000-07:00

VAT LAW IN ASSAM
‘Power conferred’ and ‘power exercised’ are the two inherent and indispensable ingredients of administration of law. The power delegation and power exercise scenario are very much there in the Constitution of India (Constitution) and Laws of the land. Without this, the administration will be one man’s or one authority’s game. Our instant discussions mainly confined to the administration of the Value Added Tax Act of Assam (VAT Act), 2005.
The Supreme authority to exercise powers under the VAT Act is the Commissioner of Taxes, Assam (Commissioner). He is assisted by the taxing authorities, namely; the Additional Commissioners of Taxes, Joint Commissioners of Taxes, Deputy Commissioners of Taxes, Assistant Commissioners of Taxes, Superintendents of Taxes and the Inspectors of Taxes, appointed by the State Government, who can exercise the powers of the Commissioner by virtue of such powers delegated to them in accordance with the provisions of the Act subject to the conditions and restrictions, imposed by the rules prescribed by the Act
There has been some departure/ deviation from the main theme of the VAT Act and the power delegation and power exercise episode sometimes become controversial. A discussion will bring out the points of controversy.
(i) Rule 6 of the VAT Rules specified a table providing way and scope for delegation of powers by the Commissioner to the taxing authorities, appointed to assist him. In the said table, the taxing authority, namely; the Assistant Commissioner of Taxes did not figure at all. While delegating powers by the Commissioner, the Assistant Commissioners of Taxes were accommodated in the power exercise scenario, which seems to be direct clash with the provisions of rule 6, as aforesaid. Though this acute irregularity persists since 1st May, 2005, the State Government did not think it proper to make modification of the same during these long three years’ and four months’ period.
(ii) Rule 6 provided that power of scrutiny of returns (Section 33), Provisional assessment (Section 34), Self assessment (Section 35), Audit assessment (Section 36), Best judgment assessment (Section 37), Assessment in case of the un-registered dealers (Section 38), Assessment of turnover escaping assessment (Section 39), Power to re-assessment in certain cases (Section 41) etc. are to be delegated to the Superintendent of Taxes.
(iii) The Superintendent, as defined in VAT Rules means the Superintendent of Taxes appointed by the Government by that designation within whose jurisdiction the dealer’s place of business is situated or if the dealer has more than one place of business, the Superintendent of Taxes in whose jurisdiction, the principal place of business is located or if the dealer has no place of business, the Superintendent of Taxes, who has been so notified by the Commissioner.
(iv) It aptly implies that there should be one Superintendent of Taxes in respect of a dealer in a particular area where his place of business or the principle place of business is situated.
(v) Contrary to this spirit of law, the Commissioner by notifications dated 28th April, 2005 delegated his powers to the taxing authorities before coming into force of the VAT Act, which did not maintain the rational and judicious approaches
(vi) The Commissioner delegated his power of self- assessment (Section 35) to the Superintendent of Taxes of the area and not the other assessment powers.
(vii) The powers of provisional assessment and escaped assessment (section 34 and 40) were delegated to the Superintendents of Taxes, attached to the Commissioner, who it seems were not appointed as a the taxing authority by the Government to make a base in tax administration.
(viii) The power of audit assessment was delegated to the Audit team, constituted by the Commissioner, which in fact, does not have any locus- standi in the VAT Act.
(ix) Thus it is evident that :
(a) the power of provisional assessment, best judgment assessment, escaped assessment, those are being exercised by the unit Superintendents of Taxes seem to be without any delegation of powers
(b) the ‘Audit Team’, though not enunciated in the Act, is nothing but some sorts of investigation wing, while the ‘Audit Assessment’ is quasi-judicial function, which can not be mingled together in view of the doctrine of separation of power, as laid down in Article 50 of the Constitution.
(c) Similarly, the quasi-judicial power conferred to the Superintendents of Taxes, attached to the tax Commissionerate seems to be a matter of controversy,

(x) The Superintendents of Taxes of the area have not been delegated with the
powers of Registration (Section 21, 22,23 etc.) and thus the registration
proceedings, security demand proceedings etc. are being exercised without
any delegation of powers, which are naturally counted as the matter of controversy
(xi) Rule 6 restricted the delegation of power to compound offences to the
Superintendents of Taxes only, but the Commissioner delegated such powers of Compounding of offences to the Additional Commissioner, Joint Commissioner, Deputy and Assistant Commissioners of Taxes, ignoring the restrictions.

. The General Sales Tax Law in Assam came into operative since December 24th, 1947. The power delegation exercise was methodical, rational and judicious. This long tradition had an erosion since the last part of the twentieth century and it took a diametrically opposite turn in the VAT Law in Assam causing some serious set backs and anomalies in the tax administration forum.
The matter s were discussed in a number of times through the media, but was of no avail.

( Mrinal Kanti Chakrabartty)
“Rudra Bhawan”
R.G.Barua Road,10-Lakhimipath
Guwahati-781024

TAX DOGING: AN ECONOMIC OFFENCE

2008-09-02T06:20:00.000-07:00

Tax dodging is a burning problem of the day. It has spread like the cancerous tissues affecting adversely the collection of revenue. A serious threat to the state economy is knocking at the door and naturally mass people are anxious for remedial measures.
Of late, the State Tax Commissioner Mr. Sanjay Kumar Lohia spoke before the news media and it aptly made crystal clear that the extent of evasion of tax has gained the momentum in the state whereby doldrums has been created in the state economy. The honest and necked exposures made by him in relation to the evasion of taxes reflected an ugly picture of the functioning of the check posts vis-à-vis the tax administrative machineries of Assam. The mass people of Assam are constrained to hold that the revenue administration has been getting declined. It is undoubtly well established that the base yards of revenue generation Scheme, namely; the border check post at Sreerampur and Boxirhat, the gateways of Assam, could not be mobilized in a planned and systematic manner. The required infrastructure could not be provided and the qualitative skilled manpower is absent very much. Though the ball entirely rests in the court of the State Govt., it mysteriously maintained a cipher attitude to mend the deficiencies and to do way with the persistent lacunae and odds. Since long floods of advice and suggestions were poured to the State Govt. for acceleration and upgrading the functioning of the check posts, but it reached to the deaf ears and amounted to be a far cry in the wilderness. There is no reaction of the people’s demand and thought provoking advice and suggestions.
One will hardly appreciate that 98 percent of the incoming loaded trucks make their safe and extensive ways into the State without being physically intercepted and checked. Naturally, vehicles with under-weight, mis-classified and unaccounted goods use to enter into Assam without any hindrances and take berth in the trade scenario of Assam abstaining from discharging the statutory obligations and liabilities to pay tax on sale of such goods. Naturally tax-dodging episode spread throughout the state by leaps and bound.
The tax commissioner Mr. Lohia asserted that last year tax evasion amounting Rs. 198 crore was detected but he was not conspicuous in the statement about the out turn derived thereon. Whether it was simply a paper work is not known? The Statement that 40 (forty) crore of evaded taxes were realized by seizing goods vehicles in March, 2008 reflected a horrible picture on the functioning of the Check Post through which the goods vehicles entered into the State of Assam. It has, on the other hand, been noticed that due stress is given for detecting evasion of taxes in Guwahati city, while no effort or endeavour is there in detecting other important commercial places of Assam and such vital task is ignored or neglected. The evaders can safely move the goods vehicle through the North Bank of Brahmaputra without any hindrances and thereby indulge evasion of taxes.

In his own words the tax commissioner is fully aware of the prevailing tax dodging activities, but he is non-committal to dislodge or curb the ugly games played by a section unscrupulous traders, which is of dire necessity at this stage. It can be well construed that tax machinery has been kept paralised jeopardizing the revenue generation exercise.

It is well aware that nullification of Entry Tax Act and reduction of central sale tax have been a dominating factor in the matter of short fall in the matter of collection of revenue, but it is not a denial of fact that scope for recoupment of such pecuniary loss is quite existent by way of making a halt of the tax dodging episode.

The introduction of composite tax payment system contrary to the persistent procedure of tax payment on the sale value of goods has been quite detrimental to the VAT regime exercise. The composite tax system on the production of bricks, on the entire value of works Contract, on the import value of marbles go against the Constitutional themes and guidelines. The concept of tax on sale or purchase of goods has been given a good bye. This measure may end in a fiasco if challenged by any aggrieved or disgruntled traders.

The anticipated curbing of tax evasion by way of erecting composite tax check posts at Sreerampur and Boxirhat will be a long course of action. We can dream, but we should not plunge in deep slumber on such designed activity. The best course of action is to be up and doing in the race.

Tax evasion is an economic offence. It is offensive in the social stature as well. If the tax machineries are cautious and conscious to curb evasion of taxes a serious catastrophe on the state economy will be imminent within a short period of time.

(Mrinal Kanti Chakraborty)
Date – 5/04/2008

Rudra Bhawan
R.G. Baruah Road
10 Lakshmipath
Guwahati-24

CONTROVERSIAL ASPECTS OF ASSAM VAT LAW

2008-08-13T08:54:00.000-07:00

The Assam Value Added Tax Law (VAT Law) remained in the womb for couple of years and got its birth on the 1st day of May 2005 after the Govt. of India accorded the green signal. The Law, however, did not attain the requisite maturity, as expected and the structure remained crazy and rickety after a good deal of expensive exercise.
VAT is, no doubt, a unique and transparent tax measure having its self steering wheels to achieve the goal, but it has some obvious deficiency and confronted its implementation in a large federal structure of country like India, where there is diversity and disparity amongst the States in the matter of revenue administration. In a State like Assam where, major section traders are illiterate or half-literate, the clock-wise chain of the VAT System always slips away from the main orbit and gets the system topsy-turvy
VAT means a tax on the sale or purchase of any goods at every point in the series of sales made by the registered dealers with provisions of credit of input tax paid at the point of previous purchase thereof. The ‘input tax’ and ‘output tax’ are reckonable ingredients in the VAT exercise. ‘Input Tax’ means amount paid or payable by way of tax under the Act by a purchasing registered dealer to a selling registered dealer on the purchase of goods in the course of business, while ‘Output Tax’ in relation to a registered dealer means a tax charged or chargeable under the Act in respect of the goods sold by that dealer. In a plain meaning, the ‘Input Tax’ and the ‘Output Tax’ are one and the same. For the purchasers, it is termed as ‘input tax’ and for the sellers it is ‘output tax.’
VAT law was enacted by the Legislature of Assam under the authority of Article 246 (3) read with entry 54 of List II (State List) in the Seventh Schedule of the Constitution of India keeping in view the broad based principle that it is a tax on the sale or purchase of goods at every point in the series of sales. A sharp deviation has been maintained in the said Law, where simultaneously the provisions of levy of tax at the point of first sales in Assam has been accommodated without any power or authority incorporated in the Law in this behalf. Fantastically, 23 items including Crude Oil, Petrol, Diesel, Petroleum products etc. were termed as taxable at the first point sale in Assam. The items like tea, biscuits, medicines, liquor, drugs etc, which have the multifarious stages of sales in the trade scenario of Assam, were included in the Schedule of first point sales, making thereby, an unexpected departure from spirit and intention of the VAT theme. While the administration of VAT Law with its Rules is beset with a broad based principle, i.e. a tax on multiple stages of sales, the accommodation of first point tax system created the administrative spheres more clumsy and cumbersome. A careful study and analysis made it transparent that the collection of tax on such first point of sales occupied about 44% of the collection of sales tax in 2005-06 while about 50% in 2006-2007, which apparently shows that the collection of VAT is not up to the mark. It will be fair to place in the record that the growth of VAT revenue in 2006-2007 is Assam was 19.2% in Assam, while it was 22.4% in all India sales tax scenario, which was in no way encouraging or promising. It has further been degraded in 2007-2008 as projected by the media from time to time. The Govt. of India has reviewed the situation and is contemplating to introduce ‘Goods and Services Tax’ in replacement of VAT regime with effect from 1st April 2010. There have been experiments and re experiments on the State Sales tax matters, by the Govt. of India, but the State maintained a cipher attitude and failed to raise their voice of disagreement to safeguard the State revenue interest.
A very unique and unprecedented projection have been exhibited in the VAT Law of Assam by way of empowering the Govt. of Assam to notify the system Composition of Tax (Lump Sum Tax) in lieu of the tax on sales payable by a trader at every point of sale. The principle-adopted contrary to the spirit of VAT in this behalf and the notification issued to levy and realise such composition of tax represented the following:
1. From the retail seller up to the limit of 40 Lakhs of rupees sales in a year irrespective of sales taxable and exempted goods slap wise ignoring the First Schedule of the VAT Law.

2. From the Works Contractors on the full value of Contract works without confining it to the transfer of property in goods, as rigidly occurred in Article 366 (29 A) (b) of the Constitution of India.

3. On the productive capacity of the brick fields without properly adhering to the tax on sales of bricks produced in the brickfield as envisaged in the Schedule II of the VAT Law.
4. On the import of marbles (earlier on potato, onion and garlic also) instead of sales and obviously making direct clash with entry 52 of List II (State List) in the Seventh Schedule of the Constitution of India read with the Assam Entry Tax Act, formulating or providing measures for the levy of such tax or entry on importing goods.

The measure of composition of tax in the VAT regime seems to be an extra-territorial exercise and it amounted to be an slaught on the Constitution and the Law of the land. The Composition of tax providing relief to the traders to adopt the legal formality like submission of returns, production of accounts and other allied obligations always goes to a higher side, but it seems that the measure of tax has been scaled at a much lower side to provide fiscal benefit to the traders for some obvious reasons behind. The traders have, therefore, no reason to grumble or to be aggrieved
We hope, the controversial aspects of the VAT Law, as discussed above will attract attention of the State Govt. and the tax machinery and a constructive approach will be forthcoming for safe guard generation and augmentation of the revenue of the state.

Phone- 2457734
Mobile- 98642-01694
Date – 6/08/2008(Mrinal Kanti Chakrabartty)
‘Rudra Bhawan’
R.G. Baruah Road
10 Lakshmipath
Guwahati-24

My Studyroom

2007-02-27T23:17:00.000-08:00

My study room .....

Paper read out in the Seminar Organised by All India Services Pensioners’ Cell held on 2nd July,2005

2007-02-10T03:09:00.000-08:00

VAT-ITS IMPLICATION FOR THE COMMON PEOPLE
Hon’ble Chairman and respected gentlemen :

I am really thankful to you all for giving me an opportunity to speak on the topic “ VAT- its implication for the common people”. I was working in the Assam Taxation Department and retired from service as the Superintendent of Taxes on May, 31st, 1996. The Value Added Tax, popularly known as ‘VAT’ is, therefore, a new subject to me and I am yet to acquire sufficient knowledge on the subject. Even then, I am trying to project some salient features on the concept of VAT, its constitutional base, impact and implication on the common people and other allied matters to the best of ability.
Assam has immense visible and potential natural resources, namely; agricultural, forest, mineral, water resources. A proper utilization and mobilization of such natural resources may have the consequential effect of immense growth of revenue resources. Assam is, in fact, legging far behind in the industrial scenario, compared to other States of India. The trade activities mainly rest with the sales of goods, imported from places out side the State. To speak truly, Assam is a consuming State rather than a manufacturing State, having no adequate industrial base and other infrastructure. The price structure of the commodities, therefore, always runs to a higher side, compared to the same at the source. The VAT is a tax, which is payable at every stage of sale from the purchase of raw materials in the State till the sale of manufactured products made to the level of the consumers. Again, the sales of imported goods by the whole sellers to the retail sellers and then upto level of the consumer’s incidents of tax will be there.
Assam produces jute, superi, ginger, bamboo and different types of oil seeds in abundance. The raw hides and skins, bones of animals can well be had from the carcasses of animals,- domestic and wild. There is, however, no wide platform for manufacturing and processing activities of many of those materials. Those goods are mostly despatched to other States for manufacturing and trade activities. Thus other States are deriving commercial base and fiscal benefits at the cost of these precious resources of Assam.
The tax revenue collection of Assam was Rs. 2332.00 crore in 2004-2005 as against Rs.528.56 crore in 1994-95. The expansion of the businesses, enlargement of the volume of business, introduction of new measures of tax, enhancement of the rates of tax, change of consumers’ pattern in the modern hi-tech era etc. have a large impact on the revenue generation scenario of Assam.. The State tax officers have also been playing a pivotal role in such revenue generation exercise. We are hopeful that the tax revenue target fixed for 2005-06 at Rs. 2900 crore will safely achieve its goal, if the implementation of the VAT system goes in a right and proper direction.

Constitutional back ground on VAT Law
A tax on the sale or purchase of goods is a State subject. The State Legislatures have been empowered to make law on tax on the sale or purchase of goods within the State by Article 246(3) read with entry 54 -List II- (State List) in the Seventh Schedule of the Constitution of India.

Introduction of the system of VAT.
Keeping this object in view, the Legislatures of Assam adopted the Assam Value Added Tax Bill, 2003. The measure of VAT could not be implemented, as there was lack of consensus amongst the States. However, barring a few States, the system of VAT has, of late, been introduced in India. The Assam VAT Bill, 2003 received the assent of the President of India on February, 25th, 2005 and the Act came into force from 1.05.2005.

What is a VAT?
The VAT is a tax on the goods at every stage in the series of sales made by the registered dealer with the provisions of credit of input tax paid at the points of previous purchases thereof. That is to say, ‘VAT is a multi-point tax at different stages of sales, which ends its course when the goods are sold to the consumers’. VAT is based on value addition to the goods sold. It is equivalent to the sales tax at retail level, but such tax is collected through the entire chain of production and distribution within the State. VAT for a dealer is the difference of tax payable on sales effected by him during a period after deducting therefrom the tax paid or payable on the purchases made within the State. It is collected in instalments at each transaction in the production and distribution system. It does not have cascading effect due to the system of deduction or credit mechanism. VAT is a tax on domestic consumption. The final and total burden of tax fully and exclusively is to be born by the domestic consumers of goods and services. No VAT is charged or levied on sales other than in the States in which sales or purchases of goods are effected. Where any purchase or sale is made in the course of inter-State trade or commerce, it is governed by the provisions of the Central Sales Tax Act, 1956, a law enacted by Parliament. The State taxing authorities carry on the administration of this Central Act and it is to be governed by the provisions of the general sales tax law of the State. The VAT law in the State does not have any direct impact on the same. The proper accountability of such sale or purchase to and from the State has, however, an indirect impact in the process of tax revenue generation of the State.

What is Out put tax?
‘Output tax’ is a tax charged or chargeable by a registered dealer on the sales made by him. The out put tax is thus a tax on sales and a registered under the VAT Act can only collect such tax.

What is input tax?
‘Input tax’ means the amount paid or payable by way of tax under this Act by a purchasing registered dealer to a selling registered dealer on the purchase of goods in the course of business That is, for a seller, such tax is an out put tax and for a purchaser, it is an input tax.

What is credit of input tax?
‘The credit of input tax’ means the amount admissible for set-off with reference to the tax paid at the time of previous purchase. In VAT system, a seller is entitled to get set off of the amount of tax paid at the time purchase made in Assam. He is to pay the difference of tax between the tax payable and the tax paid.

Advantages of VAT over other form of sales taxes
VAT has a flexible capacity to generate large and buoyant revenues. It could be designed to be neutral. VAT eliminates cascading and hence no tax- induced distortion in favour or against vertical integration is possible. It tends to lesson incentive for evasion by not concentrating to the impact of tax on any given level. It makes the tax burden transparent. Zero rating of tax on exports in VAT system is easy. It has a large base. Low tax rates could have the same revenue.

Introduction of VAT In other Countries
France was the pioneer Nation to introduce the system of VAT in 1954. The VAT system has a gradual process of evolution and by now about 132 global Nations introduced the system of VAT. In the neighbouring countries of India, namely; Bangladesh, Shree Lanka, Nepal and Pakisthan, the VAT regime took birth much earlier. Except a few States, the system of VAT has, of late, been introduced in India.

Illustration on input credit and reverse credit
Input credit : Since Value Added Tax is a versatile tax, it offers several methods to calculate the quantum of tax payable. The commonly used methods of calculation are:- addition, subtraction and tax credit methods. In addition, method all factors of payments including profits are aggregated to arrive at the total value addition. The applicable rate is then applied on the tax base to calculate tax liability. This type of computation is used mainly with the income of VAT. Subtraction method is also a simple method, where value added by a firm is calculated by subtracting total purchases from total sales. However, tax credit method is generally preferred to subtraction method, as it is easy to calculate tax liability, tax refund and export refund entitlements. The VAT operating countries mostly employed the input tax credit over the invoice method of computing the actual tax payable. In this method, the deduction of taxes paid on inputs is allowed from taxes payable on the sales on the basis of aggregate of taxes, indicated in invoices. The invoices received for the purchase of inputs and sales of VAT commodities give correct indication of tax liability. This method allows easy access to auditors for matching invoices. However, deliberate tax evasion is possible, if a nexus is established between the buyers and sellers for suppressing the real invoice value and sharing the unpaid quantum of tax. If the consumers do not insist for correct invoice or collude with the dealer for under- invoicing, evasion of tax becomes intractable. The whole exercise may prove futile, as a consequence.
So, VAT equals to the tax payable on sales minus the tax paid on purchase. The above equation is the single most important equation scheme of VAT. Firstly, a dealer has to make a total amount paid to other dealers in the State at the time of purchase during the month. Secondly, he has to make a total of the tax amount collected from the buyers during the month at the time of sale. He is to deduct the two to arrive at the actual VAT payable to the Government.
VAT is generally a tax on value addition, which projects the difference between purchase and sale price of goods, but this one to one correspondence between the purchase price and sale price has become emergenceof the input tax credit method. One has to look into the totalities of the input and output taxes and there is absolutely no necessity to link a particular purchase to a particular sale credit excess out of the out put tax, which can be carried over to the next month.. Input tax does not form part of purchase expenses, because it is reimbursed to the dealer in the form of appropriation from the out put tax. Therefore, in all computation concerning the VAT, the element of tax is not to be included, while stating the purchase price.
Reversal of input credit : When any materials are stolen, destroyed or lost or disposed of on sales or disposed of otherwise than in the course of sales, the question of reversal of input tax credit crops up under certain circumstances and conditions. The dealer forfeits his claim of input tax credit and becomes liable to pay the claimed amount by way of treasury challans

Procedure of allowing the input tax credit
(a) A manufacturer purchased raw materials in Assam at Rs. 1000.00 and paid out put tax @ 4 paise in the rupee. The purchase price will thus be Rs. 1040.00. Input tax paid at Rs. 40.00
(b) If he manufactures finished goods and sells such goods to a whole sellers in Assam, say, at Rs. 2000.00 (including manufacturing cost profit margin etc.) and charge tax @ 4 paise in the rupee, such sale value will be Rs. 2080.00. The said dealer paid tax at the time of previous purchase at Rs. 40.00.
So, the credit of input tax will be admissible at (Rs. 80.00-Rs.40.00)= Rs. 40.00 The VAT payable by the seller is Rs. 40.00. The purchaser of the goods is to pay the price of Rs. 2080.00 inclusive of tax Rs. 80.00.
(c) When the whole seller makes sale to a retail seller, say, at Rs. 2500.00 (including profit margin & other charges) and the rate of tax is 4 paise in the rupee, the sale value of the goods will be Rs. 2500.00+ Rs. 100.00 (tax)= Rs. 2600.00. VAT will be payable by the whole seller at Rs. 100.00- Rs. 80.00= Rs. 20.00.The seller will get credit of input tax Rs. 80.00.
(d) If the retail seller makes sale to the consumer at Rs. 3000.00, he will have to pay tax @ 4 paise in the rupee, that is, Rs. 120.00. The sale value of such goods will be Rs. 3120.00..The input tax credit will be admissible at Rs. 100.00. He will be liable to pay VAT at Rs. 20.00
The difference between the tax collected and the tax payable is to be retained by the selling dealer. The final reconciliation is to be made at the time of furnishing of the return and allowance thereof.
It will be seen that right from sale of raw materials to the sale made to the consumer, the State will receive tax of Rs. 40.00+Rs. 40.00+ Rs.20.00+20.00 = Rs.120.00. The sellers at different stages of sales will get the credit of input tax of Rs. 40.00+ 80.00+ Rs. 100.00= Rs.220.00. The consumer will, however, have to bear the burden of tax Rs. 40.00 + Rs. 80.00 + Rs. 100.00 + Rs. 120.00= Rs. 340.00 apart from the increased sale value due to inclusion of the recurring margin of profit and other allied charges.
It is to be noted that credit of input tax is admissible on sale when one registered dealer makes sale to another registered dealer through Tax Invoice. The sale is to be made to the consumer through Retail Invoice.
A similar mode of trade deals may be there in the case of sales of goods (raw materials or finished products), imported from places out side the State. The credit of input tax will not be admissible on the first sale of the raw materials or the finished products, manufactured out of such raw materials or the imported finished products, as the tax on such purchase was paid in other State/ States. Where any sale is effected subsequent to the first sale of such goods, the question of credit of input tax will crop up and the admissibility of credit of input tax will be governed in like manner.

Consumers to bear the burden of heavy price rise
It will be seen from the above analysis that in the process of VAT deals, the value addition by way of margin of profit, other recurring cost and element of tax thereon, make the price hike in each stage of sale. When such goods are sold to the consumer at the point of last sale, it has to bear the burden of high price rise. In fact, the Government will get the legitimate tax on the sales. The common people can neither refute nor refuse, when any tax is charged on exempted goods for want of proper knowledge about the taxability or non-taxability of such goods. The increased value of goods may simply enlarge the margin of profit of such unscrupulous dealers illegally and improperly in the name of VAT. Unless the consumers are cautious and conscious, such type of malpractice will continue.

Tax under pre-VAT system
In pre-VAT system, there was no multiplicity of tax. The tax was payable at one stage of sale. In case first point tax, a tax was payable at the point of first sale in Assam. For second or subsequent sales, no tax was payable provided the selling dealer discharged the onus that the tax was paid at the point of first sale. In case of last point tax, such tax was payable at the point of last sale made to the consumers in Assam. For the earlier sales, a chain was maintained by way of issue of declaration in statutory forms to the effect that the goods, so purchased, were for resale within the State of Assam . No tax was payable on the intermediary sales. There was another measure of tax at the first point and last point of sales. The rate of tax was bifurcated into two under the provisions of law. One is for first point and the other is at the last. This benefit was admissible in respect of the sales -purchase deals made between two registered dealers only. For intermediary sales, made between the registered dealers, no tax was as well payable provided declaration form was issued in an identical manner. When, however, such sale is made at the first point to an unregistered dealer, the rate of tax is chargeable in full on such sale value.
In the VAT system, a reverse position has been maintained to make levy of tax at every stage of sales, whereby the trend will be towards automatic price rice. The system may ensure transparency, no doubt, but the price hike is likely to be detrimental to the interest of the common people.
It is not out of the place to mention here that a section of unscrupulous dealers may as well take full advantage to the VAT system and make price hike on the commodities irrespective of taxable or exempted under with imaginary and unsubstantial pretext.

Sales made through Retail Invoice
When any registered dealer makes sale of goods to an unregistered dealer or to a consumer, such selling dealer is not to issue any Tax Invoice. The issue of a Retail Invoice on such sale will be imperative. The credit of input tax is admissible. In case, any sale is made in the course of inter-State trade or commerce, the seller is also to issue the Retail Invoice. The credit of input tax will be admissible provided the previous purchase was made in the State of Assam. It is the duty of a consumer to demand Retail Invoice in course of any purchase of goods. If this not done, the seller may suppress such sale, though he collected the element of VAT along with the sale value of the goods.

Reverse of input tax credit
It has been discussed earlier, the circumstances under which the question of reversal input tax credit crops up. An illustration in this respect will make the position more clear.-
Say,- A dealer purchased goods worth Rs. 5000.00 locally on payment of VAT A part of such goods, say, valued Rs. 1000.00 has to be returned to the seller of the goods for some obvious reasons. The rate of tax of such goods is, say, 4%. Such dealer would have been entitled to input tax of credit of Rs. 200.00 on the purchase of Rs. 5000.00. Since he returned goods worth Rs. 1000,00 to the seller, he can not lawfully claim input tax credit on the said amount of Rs. 1000.00, say- Rs. 40.00. Such claim of Rs. 40.00 will be reversed or disallowed lowering his claim of input tax credit from Rs. 200.00 to Rs. 200.00- Rs. 40.00)= Rs.160.00. The claim of the original seller will also be lowered to that extent also. Though this is not relevant to the common consumers, but we should have an idea on such implications. In VAT system priority has been given on the question of self-assessment to be made on the basis of returns of turnover submitted by a dealer. Unless, there is proper scrutiny in course of audit assessment, such shortfalls may not come to the sight. There are some obvious conditions for initiation of the audit-assessment proceeding.

Does VAT always mean Value Addition tax?
Suppose, a manufacturer purchases raw materials worth Rs.1000.00 by paying tax of Rs. 40.00 @ 4%. It manufactures finished goods out of such raw materials and sells at Rs. 2000.00, which is taxable @ 12.5 %. Now, the total value of the goods including the tax will be Rs. 2000.00 + Rs. 250.00 (tax)= Rs. 2250.00. The manufacturer cum seller of the goods will be liable to tax after credit of input tax of Rs. 40.00, that is, at Rs. 250.00-Rs. 40.00 =Rs 210.00.
If we take the value added tax portion only, it will be Rs. 2000.00- Rs. 1000.00= Rs. 1000.00 and the tax payable thereon @12.5%. is Rs. 125.00. So, VAT is not always a tax on value addition. The main question for consideration is the out put tax payable- the input tax paid.

Zero-rating of tax
Suppose, a dealer purchased goods at Rs. 1000.00 locally by paying tax @ 4%, that is Rs. 40.00. He subsequently sells such goods in the course of export out of the territory of India or in other Economic Zone area, where rate of tax on sale is zero, such dealer is not liable to pay VAT. He will be rather entitled to get refund of tax paid at the time of purchase made locally in Assam. He paid VAT at Rs. 40.00 on purchase of such goods valued Rs. 1000.00, which will be in full refundable to him provided he proves to the satisfaction of the competent tax authority that sales were actually made in the course of export as well to the exempted zone areas.

Credit sales-accountability thereof
Sale of goods on credit system is a regular trade practice. Such credit sale is not only confined to between one dealer to another, but it extends to the consumers as well. In case of organized sector or whole sellers, the system of issue of credit memo. or bill is there. In other cases, it is generally not. The sellers maintain such accounts in toka- bahi or rough account book, which is an account outside the purview of the main set of the books of accounts. A retail seller making such credit sale to the consumers, likewise, never maintains such credit memo. or credit bill and maintain it identical system of Katcha accounts. In VAT system, issue of Retail Invoice for such credit sale is a must. If the consumers use to ignore the gravity of the matter and makes credit purchases in this manner, it will be an indirect indulgence and encouragement to such dealers to evade taxes. The credit system was there in the past and the credit system would be there in future, but if such credit deals continue to be unaccounted, the trade chain in the VAT system will be lost and the State will be deprived of the lawful revenue.

Unaccounted sale and purchase activities
The unaccounted purchases and sales by a section of dealers by importing goods in fake names or in the name of some fake dealers of other States makes way of evasion of taxes. This, we believe, is still in vogue. Our system of detection of evasion of tax at the source is not upto the mark, as the functioning of the border check posts are not very constructive, scientific and methodical. The requisite infrastructures are still lacking. So, the unaccounted trade deals are paving the way of evasion of taxes. If the consumers are alert against such unaccounted sale deals by not issuing any Retail Invoice or by adopting other fraudulent ways, such unhealthy and unlawful exercise can be frustrated to a great extent.

Evasion and enforcement of law
‘Evasion and avoidance of tax are brothers twine’. Frustration, annoyance with the compliance cost, may cause temptation to a dealer to evade VAT. Straight- forward greed may also tempt a dealer to evade VAT. All tax -payers must be treated equally, if they are expected to pay their share. Enforcement of the law should not rigidly be confined to a particular class or classes of the dealers. A rationality and neutrality should be applied in all case for the sake of equality, fairness and justice. A section of the traders may be liable to VAT, but they avoid to get registered under the VAT law with some false coverage. This dislocates the multi- point chain system in the VAT regime. Exaggerated claims of refund on account the tax paid on the previous purchase is not a healthy sign. The claim of credit input tax is to be tackled in a methodical and scientific way. Unrecorded cash sales made by the farmers without being taped in the VAT- net cause inconveniences to the buyers to get credit of input tax. The use of pad firms (non- existent firms) for the purpose of availing of the credit of input tax, may make way for drainage of revenue. The credit of input tax against taxable purchase, while making sales of exempted good after manufacturing activities in a fraudulent way, may cause loss of revenue. The goods, imported illegally from other States in fake names and sold in the State and VAT charged on unaccounted sales without crediting the same into the Government coffer, may make way for a major evasion of taxes. The under-valuation of goods may as well cause evasion of taxes. Small dealers, flying dealers or casual dealers, collecting VAT, may wound up business and disappear from the business scenario. This may be another way of evasion of taxes. Multiplicity of rates of tax, tax on the sales of unclassified goods at the maximum rate of tax may as well make unhealthy growth of evasion of tax. Irrational price and tax structure, as may be prevalent in neighbouring States, may make way of diversion of trade activities to any such tax free or lower rated tax zones. Manufactured or trade commodities, showing as used for own consumption, may have the consequential adverse impact on VAT revenue of the State. False claim of export and enjoyment of the benefit of refund of input tax with bogus claims may be detrimental to State revenue. The use of barter system between the buyers and sellers without drawing any tax invoice and making any payment of tax, may also have a serious ill- effect in the process of mobilization of VAT revenue. The creative accounting in the system of deals with the sister businesses in fraudulent exercise for diversion of the actual happening, may create confusion and is likely to pave the way of evasion of taxes. The modus operandi of the dealers towards deliberate lapse or negligence in issuing tax invoice and retail invoice needs to be foiled. The self-assessment in VAT system may not always be a successfulrevenue-generated vision and its adverse effect may be counted, side by side. The reason of this type of elaboration is that we the consumers may as well be aware of the tax dodging activities.

Necessity to make aware of the system to all
VAT is a newly born child in the tax -net of Assam. It is now in an infant stage. It is to be nourished properly to give a proper shape. Law is to be enforced methodically, leniently and systematically at this initial stage without causing undue harassment, hardship and inconveniences to the dealers. It will not be out of the place to mention here that from experience, it has found that proper training to the officers, traders and the consumers are yet to be imparted. A very few have acquired the practical knowledge of the system of VAT. If such training was given or received, the same was half-hearted in either side. A co-operation and co-ordination is to be maintained amongst the officer, dealers and the consumers at this maiden stage till the maturity in VAT system is attained. There should be frequent exchanges of views by organizing workshops so that initially, all can work in a common platform with a common aim and approach for successful revenue generation till it takes a final shape.

Measure of Penalty
The VAT Law has been designed in the way of repealed Assam General Sales Tax Act, 1993. A side- track is visible in many cases from the main concept of VAT. The law provided very rigid and harsh actions in preventing and arresting evasion of taxes. Such actions, in our view is to take a gradual process till the maturity is attained in the system.
The taxing machinery is to play the pivotal role in achieving success of the VAT regime. The traders and common people are to extend proper co-operation and co-ordination to make the project a success.

(Paper read out in the Seminar Organised by All India Services Pensioners’ Cell held on 2nd July,2005)

about me

2007-02-10T02:59:00.000-08:00

I introduce myself as a retired tax officer of the State of Assam. Since after my retirement from service on the 31st May, 1996.I dedicated myself towards making study and analysis on the tax structure in Assam. I have already published ten books on taxation laws. My articles on taxation, political, economic, social and religious topics are regularly published in the English and Assamese dailies and weeklies of Assam. I shall be glad if the readers go through my writings and communicate views on the books, articles, as may be floated, from time to time.

M rinal Kanti Chakrabortty
“Rudra Bhawan”
R.G.Barua Road
10-Lakhimipath
Guwahati- 781024,ASSAM

my article

2007-02-10T02:56:00.000-08:00

GUWAHATI VISION
TOURISM DEVELOPMENT

PART – I
GUWAHATI VISION -PAST AND PRESENT
Guwahati, the gate way of the six sister states of the North Eastern Region of the Indian sub-continent, is the capital of Assam. Surrounded by the lofty green hills in the east, north and south with narrow passages of out-lets, the white bedded mighty river Brahmaputra rolls slowly and silently in the west, as the symbol of peace and holiness.

MYTHOLOGICAL LEGENDARY
Kamrup and Pragjyotishpur- The Kingdom of Kamrup in the past was extended from Kartowa to Dikrai river. It was divided into four parts, namely; (i) Kampith, (ii) Ratnapith, (iii) Swarnapith and (iv) Soumarpith. Kampith was situated in between Swarnakosh and Rupika river; Ratnapith between Kartowa and Rupika river; Swarnapith between Rupika and Bhairabi river and Soumarpith between Bhairabi and Dikrai river. ‘Pragjyotishpur’ was the capital of Kamrup. According to Kalikapurana, Lord Brahma, the creator of the Universe brought into existence the planets and stars from this holy place ‘Pragjyotishpur’. In pre-Mahabharat era, Pragjyotishpur was the capital of Narakashur, the King of Demons. Bhagadatta, the son of Narakashur participated in the great battle between the Kauravas and the Pandavas and lost his life in the Kurukshetra battle field, while fighting in favour of the Kauravas. Pragjyotishpur of Mahahabharat era, is Guwahati of this present era.

Temples in Nilachal Hills
Kamakhya temple : Kamakhya, the holy temple of the Hindus, is situated in the Nilachal Hill of Guwahati. Consequent upon self- immolation of Satee in the sacrificial fire-pit arranged by her father King Daksha, Lord Shiva, the husband of Satee was extremely shocked with grief. Outrage and wrath turned him to be violent and he started to move around the world with the decomposed body of Satee in his shoulder. This perplexed all. A serious panic was in the sight and all were apprehensive that the destruction of the Universe would be imminent. The gods approached Lord Vishnu, the protector of the Universe for protecting the creation. Lord Vishnu was equally anxious for the impending perilous eventuality. He began to part with the organs from the decomposed body of Satee by his Sudarshan Chakra one after another, when Shiva calmed down and left for Himalayas. The sex organ of Satee fell in Nilachal Hills. This place was latter identified as the Devi Peeth. Devi Kamakhya’s existence in Nilachal Hill became known in course of time. The temple of Devi Kamakhya was constructed at different times by different rulers in this holy Devi Peeth. Thousands of devotees from different parts of the country assemble daily to offer puzas and sacrifice of animals, birds etc. before the all powerful deity Devi Kamakhya. In Ambubachi festival, there is a heavy congregation of devotees including monks and sages from different parts of the country in each year to mark the miraculous occasion.The red clothes collected from the Devipith at the end of the festival are preserved by the devotees as a holy shrine.
Stairs built by stones : Demon King Narakasur was charmed with the beauty of Devi Kamakhya and proposed to marry her. The Devi agreed on condition that the king would have to construct the stairs from the foot hill of Nilachal to the Kamakhya temple within a night. This process was started and it was on the verge of completion, when with the dissimulation of the goddess, the same was foiled. Narakasur became hostile for the illusive role of Devi Kamakhya and attacked her with wrath. At this stage, Lord Vishnu appeared in the scene and killed him. Those stairs are still proclaiming the architectural glory of Demon era. At present, there is a sound communication system upto the top of the hill, where the Bhubaneswari temple is situated. The State tourism department made immense development of the area.
Bhubaneswari temple : The Bhubaneswari temple is situated on the top of Nilachal hill, a place full of natural beauty. This hill-top is a fine natural observatory, wherefrom the beauty and grandeur of Guwahati city and the surrounding areas can be enjoyed with ample pleasure.
Bagala temple : The followers of tantras offer puja in the Bagla temple. There is a common belief that Bagala Devi provides mental peace and relief to the devotees, when confronted by evils and foes.
Chhinnamasta : The Chhinnamasta temple is situated adjacent to the Kamakhya temple. The goddess is also known as Gupta Durga. Devi cut her own head and carried in her hand.
Bhairabi temple : Bhairabi temple is situated in the lower portion of Nilachal hill. The floor area of the temple is said to be on human skulls. In each night of Full Moon and Dark Moon, the priests offer puzas to Devi Bhairabi in tantrik system. The pond in the temple complex is full of tortoises population of very old times. When called as ‘Mohan’ with some food-stuff they rush towards the beach to get it.
Pancha Peeth temples of Mahadeva (Shiva) : In Nilachal Hills, the Pancha Peeth temples of Mahadeva (Shiva) are situated. Those are Kameswar, Siddheswar, Koti-Linga, Aghor and Amratkeswar.

Temple in the river island
Umananda temple : Umananda temple of Lord Shiva, is situated in a tiny hill- river island of Brahmaputra. Thousands of devotees assemble in the temple premises on the occasion of Shivaratri Festival to offer puzas to Lord Shiva. There is a proverb that Lord Shiva burnt Kamdev into ashes with his wrathful eyes in this hill, when he and his wife Rati tried to disturb Lord Shiva in his deep meditation. This hillock- island is also known as Bhasmachal. Presently a plan to construct a rope-way from Guwahati to Umananda is under consideration of Assam Government.

Other temples in Guwahati city
Ugratara temple : Ugratara temple is situated at Uzanbazar near Jorpukhuri (pair of ponds). There is a pond inside the temple, where sacred navel Peeth of Devi Ugratara is situated.
Sukreswar temple : The great sage Sukracharyya is said to have established this Shiva temple ‘Sukreswar’ or ‘Sukleswar’ near the river Brahmaputra at Panbazar. The devotees use to attend daily to offer puzas to Lord Shiva. On the Sivaratri day, there is big congregation of devotees in Umananda and Sukreswar.
Janardan temple : The Janardan temple of Lord Vishnu is situated in the same campus of Sukreswar (Sukleswar) temple, where devotees use to offer puzas.
Baneswar temple : Baneswar is another temple of Lord Shiva, situated opposite to Sukreswar (Sukleswar) temple, where also there is assembly of the devotees.
Chhatrakar temple : Chhatrakar temple is situated in a hill at Uzanbazar, where Devi Mangalchandi, another form of Devi Durga is worshipped.
Navagraha temple : Nabagraha temple, situated in Chitrachal hills, is an abbreviation of nine planets, namely; Sani, Rahu, Ketu, Suryya, Chandra, Mangal, Budh, Brihaspati and Sukra. In the past, the astronomers used to make study and research regarding planets from this temple. Hundreds of devotees visit this temple daily to offer puzas to secure peace and relief from the ill-influence of the planets.
Basistha temple : Basistha temple, commonly known as Basisthasram, is situated about 12 kilometer away from Guwahati city. The great sage Basistha performed the three-timed religious prayer (‘Tri-Sanhya’) by bringing the waters of the river Ganges through meditation in three channels - Sandhya, Lalita and Kanta. This is also commonly known as Basistha Ganga. In the inner side of the temple, the grave of Basistha is there, where his mortal in the stone form rests in peace.
Ganesh temple : The Ganesh temple is situated in between Khanapara and Jorabat on the Shillong Guwahati road. Most of the passers use to pay their respectful devotion and offer coins as a mark of devotion to the holy deity. The magnitude of such daily money receipt is so heavy that the same are utilized for the purpose of education, treatment etc. through separate organizations established in this behalf.
Geeta temple : The Geeta temple of Lord Krishna (Vishnu) is situated in a hill in Geeta Nagar on the Zoo-Narengi road. The area is very calm and quiet and is attractive to the devotees. The main attraction of this temple is Geeta hymns and Krishna bandana.
Shyam temple : Shyam temple, another temple of Lord Krishna (Vishnu), is situated in a small hillock in Narengi area. Hundreds of devotees attend there to offer puzas and to hear the attractive Krishna bhajan.
Pandunath temple :Pandunath temple is situated at Pandu in the bottom of Baraha Parbat, where the thigh of Lord Vishnu in a stone form, is said to be there.
Balaji temple : A new religious temple ‘Balaji’ has recently been constructed near the National High way between Jalukbari and Beltola. The temple and its mode of workship is to some extent of the Southern type. This attracts hundreds of people daily.

Temples out side Guwahati city
Aswaklanta temple : Aswaklanta temple is situated in a hill at North Guwahati, in the west bank of the river Brahmaputra. In the lower side of the temple, there is a statue of Lord Vishnu in the form of tortoise (‘Kurmma Awatar’), while in the upper side, there exists, another statue of said deity in his last sleeping stage (‘Ananta sayan’) . A foot step of Lord Vishnu is there on the river bank, where the people performs the shraddha ceremony of the pre-generations and parents.
Manikarnewar temple : Mani Karneswar is a Shiva temple, situated in Manisaila hill of North Guwahati.
Dolgovinda : Dolgovinda is a Vishnu temple, where hundred of devotees assemble daily to offer puzas with fresh cow milk.
Dirgheswari temple : Dirgheswari is a temple of Durga, where heavy flow of devotees takes place to offer puza and sacrifices.
Haigreeb Madhab temple : Haigreeb Madhab temple is a Vishnu temple at Hajo, at a distance of about 32 Kilometer from Guwahati. The statue of Vishnu in this temple is of horse-necked.
Kedar temple : Kedar temple is situated at Madanachal hills at a few distance from Haigreeb Madhab temple. This famous Shiva temple attracts the pilgrims from different areas.
Powa Mucca : Powa Mucca is a holy shrine of the Muslims, where the devotees from various places assemble to offer prayer.

HISTORICAL LEGENDARY
Ahom rule : The Ahoms were of Tai community. Chao Chukapha, migrated from Thailand and entered Assam through Patkai hills. He established the Ahom Kingdom in 1228 A.D. Chukapha was in the helm of power upto 1268 A.D. Prior to the Ahom rules, the area was ruled by the kings of different dynasties at different times in the piece meal way. The Demon, Kirat, Kshatriya, Sudra, Barman, Hill tribes, Chutia, Barahi, Moran, Kachari were such heterogeneous dynastic rulers without any homogeneity. A controversy prevails over the question baptizing the Ahom Kingdom as ‘Asam’. It is not disputed that ‘Asam’ means unparallel and it is believed that the origin of Asam was from the word ‘Ahom’. The capital of the Ahoms was first at Charaideo and subsequently it was shifted to Gargaon. During the Ahom regime, Guwahati was under a ‘Barpukhan’, the administrator cum general for the western region.
Mughal invasion : The great Mughals tried to make expansion of their territory upto Assam. The Mughal generals Mirjumla and Ramsing attacked the Ahom Kingdom on a number of occasions. It was with the deep sense of patriotism and inite bravery of the Ahom army, the attempts were foiled and frustrated. The Ahoms could maintain profound glory and remain independent. The unyielding personality and strong determination of the great Ahom general Lachit Phukan, made it possible to achieve victory of the Ahoms in the Saraighat battle. Lachit did not hesitate to kill his own maternal uncle by sword for the sloth and lapses, exhibited by him, in constructing the garrison on the other side of the river Brahmaputra. The stern remarks ‘Maternal uncle is not superior to my mother land’ will remain as a source of inspiration for the future generations. When the Ahom Armies on the verge of defeat,Lachit moved to the battle field with his ill-health and drove out the Mughals in the famous ‘Saraighat battle’. ‘Momaikota Gar’ (garrison) is still projecting the glory and greatness of Lachit Barpukhan. It is a happy augury that the Government of India, of late, recognized Lachit Barphukan as a National Hero. His Excellency, the then Governor of Assam Lt. General S.K.Sinha (PVSM) deserves congratulation for his keen efforts in the matter.
Mans’-invasion and British-rescue : A serious disaster took place in Ahom regime following the weak administration and internal conflictsof the Ahoms. The Ahom regime started sinking like a setting sun. A section of traitors to the country invited Mans from Burma to overthrow the Ahoms from administrative scenario of Assam. The inhuman oppression beset with cruelty of the Mans went to such an extent that it rendered the innocent indigenous people homeless, apart from causing immense loss of lives and properties. The East India Company, a British trade wing, had to intervene and to drive the Mans out of the soil of Assam.
British Raj : The Ahoms lost the monarchy for good, when the Britishers merged the Ahom Kingdom, ruled by Swargadev Purandar Singha with British territory. The British Government, already conquering other parts of India, took over the administration of Assam. From 1874 A.D, it took possession of entire Assam including the Sadiya track and Balipara track in the north east, part by part. The capital of the British-ruled Assam was established at Shillong, a distance of about 100 kilo-meter from Guwahati. The Britishers made immense development of Assam in the 1st and 2nd World War periods, but it caused irreparable damages by applying divide and rule policy and taking away the valuable resources.
Independence of India (Swaraj) : A mass movement started in the whole of India against the autocratic British rule. The non-violent movement (‘Ahimsha Sangram’), under the dynamic leadership of Mohan Das Karam Chand Gandhi (‘Mahatma Gandhi’), the father of the Nation, also got the momentum. The people of Assam rose to the occasion to gain over the independence (‘Swaraj’). The British Government could well realize that the rule of the land against the will and sentiment of the patriots was not possible any more. India became independent on August, 15th, 1947. The British rulers succeeded in breaking the prolonged ties of fraternity between the Hindus and the Muslims and sowed the germs of unhealthy suspicion and treachery with uncompromising trend of hostility. This resulted in the creation of a separate nation ‘Pakisthan’ in bifurcation of India. India became a Sovereign, Socialist, Secular, Democratic Republic on January, 26th, 1950 after the Constitution of India was adopted. The Constitution of India was adopted and it came into effect from that date.
Effect of partition in Assam : The effect of partition was that Sylhet district of Assam was merged to East Pakisthan following a referendum. The plan to merge the undivided Goalpara district with Pakisthan, however, ended in a fiasco with the untired efforts of great patriots like Lokapriya Gopinath Bordoloi, Mahendra Mohan Choudhury, Bijoy Ch. Bhagawati and others with the blessing of Mahatma Gandhi, the father of the nation.
Division of Assam- Shifting of capital : After independence, there had been mass internal movements by the Hill people of Assam over the question of creation of separate Hill States. In the first phase, Nagaland secured Statehood on December, 1st, 1963, which was followed by the birth of Meghalaya and Mizoram. Soon after Meghalaya got the statehood in 1972, it forced the Assam Government to shift the capital from Shillong immediately and instantaneously. This went to the climax and ultimately, the Assam Government headed by Sarat Ch. Singha was compelled to shift its capital from Shillong to its temporary capital at Dispur (Guwahati) in 1973 amidst untold humiliation. A permanent capital complex has been set-up adjacent to the temporary capital complex recently.

EDUCATIONAL SCENARIO
Cotton college : Cotton College, the higher temple of learning of that time, was established at Guwahati in 1901, after the name of Sir Henry Cotton, the Chief Commissioner of Assam. The Cotton Collegiate High School is, side by side, providing education below the degree standard.
Earl Law College : Earl Law College was established at Guwahati in 1914 A.D. after the name of Archdel Earl, the Chief Commissioner of Assam to impart law education.
Weaving School : A Weaving School was established at Guwahati long back in 1920 to provide weaving training.
Other colleges and institutions : There are numbers of Schools and Colleges at Guwahati for general and technical educations and they produced numbers of talented persons, as the future of the Nation. There was no University in the North Eastern Region till 1947.
Indian Institute of Technology : The establishment of the Indian Institute of Technology (IIT) in Agiathuri - Amingaon area is the product of Assam movement on the ‘Foreigners’ issue’. This organization will, no doubt, give birth to talented persons from this area.
Guwahati University : The Guwahati University was established in 1948 with the renowned scholar Pandit Krishna Kanta Handique as its first Vice- Chancellor. The curriculum and the system of education of the Guwahati University was of very high standard.
Education and politics : It is, however, unfortunate that the standard of education has been receding day by day and the political games are getting upper hand in the field of education. The united voice of the students with constructive approaches is always welcome, but studies and politics exist parellely nowadays is not at all deserving but harmful to the generation as a whole. The students and politics became co-related. The temples of learning became the den of politics.
TEMPLE OF JUSTICE
Gauhati High Court : The Civil courts, criminal courts were functioning, inter-alia, at Guwahati since the British days. The Gauhati High Court was established in 1948, as the highest temple of justice at the State level. This forum of justice is extended with the territorial jurisdiction to other six states of the North Eastern Region.
Other forums of justice : Besides many different forums of justice, the Assam Board of Revenue has been functioning at Guwahati as the appellate revenue court, while the Assam Administrative Tribunal and the Central Administrative Tribunals, as the appellate court on service matters of the State and Central employees respectively.

MEDICAL INSTITUTION AND NURSING HOMES
Gauhati Medical college : The Gauhati Medical College is a well equipped medical institution, providing medical facilities to the people of the North East Region. According to the news media, the Government of India proposed to design it in the cadre of All India Institute of Medical Science (AIIMS). But this assurance has not been materalised during the last three years and it was proved to be a joke to the people of Assam.
Mohendra Mohan Choudhury Hospital : The Mohendra Mohan Choudhry Hospital, named after the then Chief Minister of Assam, is another Government Hospital at Guwahati, wherein also, proper medical facilities to the patients are available.
Dr. B.Barua Cancer Institute : Dr. B.Barua Cancer institute, named after the great patriot, freedom fighter and eminent physician Dr. Bhubaneswar Barua, is the only cancer hospital in the North Eastern Region, where the treatment facilities to the cancer patients are available. The required amenities and facilities are yet to be provided with the installation of modern technicalities beset with adequate modern equipment.
Sankardev Netralaya : The Sankardev Netralaya at Beltola is one of the renowned institution for treatment of eye ailments in the region.
Treatment and service by other institutions/organizations : There are numbers of private nursing homes at Guwahati to cater to the growing need of patients of this area. The prominent amongst those are, Down Town Hospital, International Hospital, Guwahati Neurological Research Centre, Dispur Poly Clynic, Central Nursing Home, Eastern Nursing Home, Nemcare, Good Health, Care Home etc.
Normally, the physicians of the Guwahati Medical College use to attend the nursing homes to provide services to the patients at the cost money.

MUSEUM AND LIBRARY
State Museum : The state museum is situated near Ambari area of Guwahati, where the ancient archeological and other glories in relation to the art, culture and tradition of the North Eastern Region in various aspects have been preserved.
District and State Library : The District and State Library, located adjacent to the state museum, are rich in voluminous precious collection of books.
Nabin Bardoloi Hall : The Curzon Hall, named after Lord Curzon, the Viceroy of India, was a public hall and library. This was renamed as Nabin Bardoloi Hall in the post independence period to perpetuate the memory of Karmavir Nabin Chandra Bardoloi, the veteran patriot, freedom fighter and an illustrious son of Assam. The importance of this hall is gradually evaporating following indifference and apathy from different angles.
TEMPLES OF CULTURE
Sankardev Kalakshetra : The Sankar Dev Kalakshtra, a product of Assam movement on the Foreigners’ issue, is the modern gallery of art, culture, tradition and heritage of Assam, was established a few years’ aback at Panjabari. A flood of visitors visits this temple of culture daily.
Jyoti Chitraban : The Jyoti Chitraban at Kahilipara of Guwhati, named after Rup Konwar Jyoti Prasad Agarwalla, is a wide platform for development of art, culture, music and cino- industries.
Rabindra Bhawan : The Rabindra Bhawan, near the state museum is another important platform for projection of various cultural activities.

ASRAM
Gandhi Mandap : The Gandhi Mandap (Asram) on the top of Sarania hills of South Sarania is a very pleasant place. The area did not attain the requisite development. However, the Asram gets back its life on October, 2nd of each year, when the father of the Nation is remembered on the Gandhi Jayanti day.

PLANETARIUM
Of late, Guwahati Planetarium has been set-up at Uzan Bazar, Guwahati in the style of Birla Planetarium of Kolkata. The projections in relation to functioning of stars and planets provide ample knowledge and experience to the people about the Solar System.

STADIUM
Nehru stadium : The Nehru Stadium on the Dr. B.Barua Road of Guwahati is a wide platform of games and sports of different types. This enriched the North East Region in games, sports and cultural scenario.
National Games : The National Games has been sponsored in or around Guwahati under the auspices of the Government of India. Though it was to be held in 2005 due to some unbecoming circumstances this could not be materialised in due time. It is expected to be held sometimes in 2006-07. The venue of the said games has been selected at Sarusojai, near the National Highway of Guwahati city. The project for construction of the main stadium and multi-purpose indoor stadium is likely to be started soon with an investment of Rs. 500 crores. It will be a permanent asset to Assam ,even when the National Games are over. The growth of a big township in the areas, adjoining to the Guwahati city will, no doubt, be a magnificent achievement, if the project is piloted with right earnest.

STATE ZOO
State zoo : A zoo was established in the R.G.Barua Road, Guwahati sometimes in 1956-57. It is full of beauty with natural surroundings and automatic enclosures for the dwelling of the animals, birds, reptiles and acquatic animals. The zoo was full of rare animals amidst appropriate natural environments and congenial atmosphere for inhabitation. It attracts visitors from different places . It is painful that since some couple of years, the condition of the zoo has been deteriorating. The unbound loss of the rare zoo population without proper efforts for rehabilitation ,may fail to draw attraction to the visitors within a couple of years, unless there is proper measure for restoration of the original cadre strength. The inadequate care, insufficient qualitative diet and improper medical treatment to the inmates in the zoo, are said to be the main causes of such catastrophe.

PONDS OF ANCIENT TIMES
In Guwahati, there are numbers of ponds in the heart of the city. The prominent amongst them are Dighali -pukhuri, Nak-kota pukhuri of Panbazar and Jor -pukuri of Uzanbazar and Silpukhuri on the G.N.Badoloi Road. Except, Dighalpukhuri, the others were not developed to the required extent. A proper development of the same for boating purpose with installation of colourful mini parks may be attractive to all.
Dipar Bil (small lake) : It is nearer to Jalukbari area of Guwahati and is rich of various fish population. The birds from unknown places fly over to this bil, enhancing the beauty of the spot.
Chandubi Bil (Small lake) : Not being far from Mirza-Bijoynagar area, Chandubi bil is full of beauty. This Bil (Small lake) is said to have come into existence after the great earth quake collapsing the hill and gave birth to a large water pool, sometimes in 1897. The rare seasonal birds use to fly to this area. This is a fine picnic spot and a place of attraction of the tourists.

AIR PORT
Gopinath Bordoloi International Air Port : The Barjhar Air port has now been renovated and designed as an International Air Port, named after Lokapriya Gopinath Bardoloi, the first Chief Minister of Assam, who was posthumously conferred with the highest National Award ‘Bharat Ratna’. The air-net system in relation to the international air service is yet to be formulated properly. The Air Port at Rupshi, 15 KM away from Dhubri remains closed since last 50 years and the project came into being during the World War II is now on the point of s\destruction in all respects.

RAILWAY COMMUNICATION
Guwahati Rail Way Station : The rail way communications, linking Guwahati with upper, northern , and southern Assam as well as the other parts of the sub-continent, are available from Guwahati Railway Station. There has been a fast development of the rail communication system after the Chinese aggression in 1962 and Pakisthan aggression in 1965. The railway line passing through the heart of the city with the increased railway traffic has been causing heavy congestion in the city.

RIVER COMMUNICATION
The Brahmaputra : The mighty river Brahmaputra has its origin at Manash Sarobar of Arunachal. It rolls through Parashuram Kunda ( Sadiya) , Dibrugarh, Neematighat (Jorhat), Tezpur, Guwahati, Soalkuchi, Goalpara, Jogighopa, Dhubri which places are mostly of historical and commercial importances. There was free movement of ships and vessels to Kolkata in pre-independence period, but this started to recede after creation of East Pakisthan (now Bangladesh) and took a final halt since the Indo-Pak war of 1965. Though the river services have now been restored, it is not yet upto the mark.

TRADE ACTIVITIES AND ROAD TRAFFIC
Nerve centre of business : Guwahati, the corridor of the North Eastern Region of India, is the nerve centre of business of the six sister states of the region, adjoining Assam.
Unlawful and criminal activities : The growth of commercial importance of Guwahati, on the other hand, gave rise to unlawful and criminal activities, which include, inter-alia, tax-dodging, anti-social and anti-national activities. The movement of goods to and from Assam mainly takes place through road transport. The trade centres and godowns of the traders and the transporters are mainly located in the heart of the city.
Pollution : The heavy movements of diesel tucks accelerate the acute traffic congestion besides creating unhygienic and unhealthy pollution of atmosphere and environment..
Grazing ground of the coal dealers : Beltola, the main pass -way for incoming and outgoing vehicular traffic through the National High way, has become a grazing ground of the coal dealers, which import Khasi coal from Meghalaya for further trade activities. This area has now been turned to be the dens of the evils and ultras.
Indecent and unhygienic sheds : It will be seen that a section of (i) poor classes of people and that of (ii) persons with doubtful origin, have taken shelter by the side railway line or in the interior pockets of the city. They constructed some temporary sheds in a most indecent way and continue to live with unhygienic approaches. The abnormal growth of pick-pocketers, thieves, dacoits, and militants may have the base in such mysterious areas.

CHECK POSTS
Jalukbari and Khanapara check posts : The Government of Assam set-up two check posts in Guwahati city at Jalukbari and Khanapara for different purposes, but the modus-operandi, of the check posts failed to create proper impact in deriving requisite out-turns. The check posts could not as well play the pivotal role in successful execution of the revenue-oriented programme of the State, rather in many cases adversity comes to the light. The various shortfalls and deficiencies at different angles are responsible for the odds.

PART – II
TOURISM DEVELOPMENT
We tried to project a clean picture in Part-I of this paper titled as “Guwahati Vision”. This part, on the other hand, reflects the prospect of the development tourism in and around Guwahati.
‘Tourist’ and ‘Tourism’ : ‘Tourist’ means a person, who travels for pleasure or recreation. ‘Tourism’ means the business of organizing tours or organizing holidays and services for the tourists. “The tourists are the pioneer of civilization”. They visit from one place to another or from one territory to another to acquire knowledge and experience in relation to the culture, heritage, social and economic spheres besides deriving enjoyments of side seeing. A comparative study and analysis enable them to evaluate the surpluses or deficiencies to make way for reconciliation. The reciprocation of views on tradition, culture and heritage can as well mitigate the acute thirst of knowledge. If we go back to the history, we find that Hu-en-Tsang, the great Chinese tourist, visited Kamrup during the regime of King Bhaskar Barman and left some precious notes on culture and heritage of this region at the relevant times. Likewise, the notes left by the famous tourist Fahien reflected a clean picture in relation to the glorious history of India. In Sankari era, Mahapurush Sree Sree Sankardev traveled extensively to many parts of India and earned immense knowledge and experience. This had the consequential effect in promoting of cultural and literary spheres of Assam. The Vaisnavism of the Sankari era, and admixture of different religious concepts has immense influence in different societies of Assam.
Tourism potentiality : Assam is a very beautiful State, decorated by beautiful, hills, forests, rivers and tributaries with green cultivated lands and water pools. The temples, shrines and monuments expose the glory and grandeur of Assam. There is immense potentiality for development of tourism in this beautiful state, full of legendary. In fact, the development of tourism in Assam remains far behind, compared to the other States of India.
Tourism development in Guwahati : Our instant discussion mainly rest with the tourism development in and around the Guwahati city, keeping mainly in view the projections on Guwahati Vision in Part-I above. Guwahati is, no doubt, a good platform for the tourists, but there is no adequate infrustructure and proper venture at any angles for proper development of tourism. It is, however, a happy augury that the State Tourism Department has taken adequate staeps of late for drwaing up various plans and projects to enlarge the tourism scenerio with a notable outlook.
We take the privilege to make further projections in this regard-
(i) Inferior quality of road : Guwahati is the most unplanned city of India. The roads inside the city, are narrow and un-spacious . There is little scope to widen or to enlarge the base. The traffic congestion is a regular phenomenon. The places of importance, as projected in Part- I above, are, no doubt, very attractive. It takes more than two days to cover the same. The road condition, however, causes discomfort and displeasure of the tourists. The development of road condition should, therefore, be given priority without prejudice to any personal and political consideration.
(ii) Project for new road : As a preliminary measure to such development, it is incumbent to give proper consideration on the following aspects-
(a) Diversion of railway line : The existing railway line, passing through the heart of the city, from Kamakhya Railway station to Narengi, need be diverted to the eastern part of the city, parallel to the National High Way at Beltola. This may solve the chronic problems of heavy congestion in the city. The provision for double way shuttle trains on the existing rail-line will facilitate the movement of the passengers in local areas of the city. The remaining portion of the wide railway line may be utilized for road traffic.
(b) Abandoned railway line : The abandoned railway line from Guwahati Railway Station to the Uzanbazar river side, can as well be converted for road traffic.
(c) Drainage system : There is no proper drainage system in Guwahati city for which heavy water logging takes place, causing artificial floods after a moderate rainfall, in the major parts of the city. The out-let system of city water to the river Brahmaputra through the Bharalu river with insufficient depth and uncleaned base is required to be improved by proper digging and frequent cleaning. The drainage systems are also to be systematized for free flow of water. The eviction activities of unauthorized occupiers and encroachers should receive priority. It is a happy augury that the Guwahati Development Authority has oflet taken keen interest to remove such odds.
(d) Construction of new road : A new road can as well be constructed in either side of Navagraha foot hills with exit point at Narengi or Chandrapur with construction of fly overs, wherever necessary. This may avert the heavy traffic congestion on the G.N.Bardoloi Road.
(e) Development of road traffic : There is dearth of avenue for introduction of Metro-rail in the existing rocky base structure in the Guwahati city. The development of road traffic is thus the only solution.
Coal- world in Beltola : The Coal business is termed as “The business of Black Diamond”. The coal depots on both sides of the National High Way at Beltola have created furor and nuisance besides degrading the beauty and austerity of the area. The coal world in Beltola is required to be shifted to a wide and spacious place preferably near Baihata area. This will remove the unhealthy environment pollution and liquidate the traffic congestion.
Shifting of Navagraha Cremation ground : The Navagraha Cremation Ground in the heart of the city was renovated in early nineties under the dynamic stewardship of Shri M.G.V.K. Bhanu, I.A.S., the then Commissioner of Guwahati Municipal Corporation. This is, of late, causing much inconveniences to the dwellers of Chenikuthi, Kanwachal, Silpukhuri and Nizarapar areas, on account of environment pollution consequent upon heavy inflow of corpse in the cremation ground round the clock. Under the changed circumstances, the shifting of the cremation ground to the bank of Brahmaputra in the Kharghuli or Chandrapur side, identical to the Bhutnath cremation ground at Kalipur, will facilitate proper utilization of the area for other constructive projects. In case it is materialized, the Government patronization will be necessary to provide adequate facilities for the carriage of the dead bodies to the cremation ground at a rational and reasonable charge so that the poor people can conveniently afford to pay. The evacuated area can as well be utilized for tourists infrastructure. The maintenance of the creamation ground is very poor naw-a-days and the restoration of the old glory and danger are considered to be imperative.
Shifting of Judges Quarters : The western side of the Judges’ field, facing the river Brahmaputra needs to be cleared up for fresh air. Presently, the Forest office and the judges quarters posed to be the hindrances in the process. The shifting of the Judges quarters to Kharghuli hills side and the Forest office to some other convenient place may enhance the beauty of the river side with setting up of some constructive projects for enjoyment of free and fresh air. The Govt. of Assam has annouched such a project for evacuation of the offices and the residences of the Judges.
Tourist buses : The Government of India formulated the broad based principle for issue of permit for tourist buses to accelerate the tourists development. In Assam, such tourist buses are practically being utilized as line buses making acute competition with the latter. This could happen due to improper plan- projects for tourism and implementation thereof. Such apparent misuse has thus defeated the very purpose of tourist buses. The most effective measure will be that the power to control the operation of such tourist buses should be vested to the tourism department for proper organization and mobilization of tourism . The tourism department may also simultaneously introduce some Tata Sumo and Maruti Vans in the city on a rational and reasonable fare structure for the convenience of the incoming tourists.
Second bridge over Brahmaputra : The Saraighat bridge is quite far from Guwahati city. In order to afford proper facilities to the tourists for visiting the places of legendary in North Guwahati area, the construction of a second road bridge, linking North Guwahati from the heart of Guwahati city, has a dire necessity.
Introduction of rope way system : Guwahati is full of hills. The tourists from different areas find it difficult to move to the hilly areas on account of heavy traffic congestion at different stages. Such odds can be liquidated, if the rope way system can be introduced between (i) Foot Hills of Kamakhya temple and Bhubaneswari temple, (ii) Bhubaneswari temple and Aswaklanta temple (iii) Aswaklanta temple and Umanada temple and (iv) Gandhi Mandam and Navagraha temple in a phased manner. This type of arrangement will be most attractive to the tourist and it will enhance the beauty and grandeur of the city. It has been announced by thge Chief Minister of Assam in his Budget Speech for 2006-07 that a Rope-way between Guwahati and Umananda will be constructed shortly, has already discussed above.
River communication : The journey by ships, steamer or boats through the river is always pleasant. The beautiful green hills on both sides of the river Brahmaputra threw some unique and extra ordinary glamour. The Government may consider to introduce such river trips through small steamers, vessels or decorated boats to Sualkuchi and Chandrapur area to the attract the tourists.
Aversion of heavy traffic congestion- The entry and parking of trucks in Fancy Bazar, Kedar Road, Athgaon areas near the business premises and godown premises of the traders and transporters create heavy traffic congestion in the city. Shifting of such godown to places in outskirts of the city area, will have a good impact towards aversion of heavy traffic congestion.
Shifting of Jail-The Jail complex in Fancy Bazar- Machhkhowa area has been occupying a large area in the heart of the city. The jail was installed in the area in the British regime, when Guwahati was a thinly populated area. With the growth population in greater Guwahati and acceleration of business activities in Fancy Bazar Machhkhowa and Athgaon areas, the said jail complex with the old design is simply reducing the glamour and grandeur of the city. A move was there for shifting of the jail complex to the Changsari area, but this has not been materialized as yet. In the event of any positive venture being taken, this will remain open for utilization by way of construction of a super market or other allied constructive ventures by which attraction of the tourists can be well ensured.
Shifting of capital from Dispur : We have deep concern over the question of setting up of the permanent capital of Assam near the existing temporary capital complex at Dispur in view of the mounting congestion in the city. The heavy inflow of persons from different parts of the State in the capital area daily, has been causing serious public inconveniences and threats on security. The expansion of Guwahati city to North Guwahati-Amingaon area as well as setting up of permanent capital in that area may be a proper solution.
Inadequate tourist infrastructure- There is no adequate infrastructure for the tourists, visiting Assam from different parts of the country and out side the country. The modern amenities and facilities are required to be widened and upgraded for accommodating the foreign tourists. The department of tourism, Government of Assam as well as the Government of India may consider to give priority for construction of tourist lodges near the important tourist spots. This will ensure substantial inflow of the tourists. A proper mobilization of resources can be anticipated in such exercise. Oflet the Assam Chief Minister in his Budget Speech assured that the pans for construction of five star holets to accomodate the tourist will be taken up soon and such tourist will be provided exemption of tax on luxury.
Growth of other infrastructure : The tourists inflow will help the growth of other infrastructures, like development of the area, road communication, business activities, avenue for self-employment and it will definitely upgrade the economy of the State.
Assam, attractive for the tourists : Assam attracted of the tourists for its beauty glory and grandeur till seventies. A large numbers of tourists visited Assam, the wide platform for the tourism with its primary base at Guwahati. The six sister-States, adjoining Assam also equally attracted the tourists to the places of importance on different considerations.
Fear psychosis : The peace and tranquility of Assam got a thunderous blow since the early part of eighties following the birth of ultras and their militant activities. This gained the momentum in course of time. The incidence of kidnapping, extraction of money, killing of the innocent people created acute fear psychosis in the minds of the outsiders. The tourists from in and out of the country suspended the touring mission on the ground of safety and security. The Government of Assam also could not ensure proper and safe passages to the tourists in visiting this area. It will take time to regain the lost image. The fiscal position of Assam would have been accelerated, had there been proper and adequate inflow of the tourists and such a venture is to be encouraged for the development of touring spot which will as well help much towards growth of economy in Assam.

GOVERNMENT INVESTMENT
The trend of unlawful activities of the ultras has considerably been curbed. It is high time that the Government of India should organize the tourism base and draw up projects for the development of tourism in this region by making adequate investments and taking steps for implementation and execution of such projects under its direct control and supervision. Such investment will yield substential out turn in the long run.

GUWAHATI VISION
We have projected a clean and crystal picture on Guwahati Vision -past and present. We also tried to high light the prospect for development of tourism and offered our suggestions for various improvements and developments, keeping mainly in view the upgradation of the Guwahati City and other the prevailing facts and circumstances. If the projects are worked out properly and executed with right earnest, there will be a drastic change on the Guwahati Vision in future. Guwahati will be an ideal city beset with higher importance and austerity, if the progressive measure are adopted and executed. The original beauty, glamour and grandeur will be restored. The ornamental decorations with modern and sophisticated technicalities will attract tourists from different angles. The formulation of different projects is a State matter. The State Government is to convince the Central Government with all plans, progammes and bio-data for allocation of funds. The development of tourism will be possible. If things are tackled with right earnest. The public opinion and public consciousness are equally indispensable and co-related for the success of such exercise.

my books

2007-02-10T02:53:00.000-08:00

The Assam General Sales Tax Act, 1993.
Study and Analysis on the Value Added Tax Law in Assam.
A Hand Book on the Central Sales Tax Act, 1956.
Study and Analysis on the Assam Professions, Trades, Callings and Employments Tax Act, 1947
A Critical study on the Tax Structure in Assam.
Tax Law on Entry of Goods into any local areas in Assam.
Development of Economy in Assam.
Kar Rajaha Asomar Unnayanar Mul Upadan (in Assamese)
Study and Analysis on some Tax Measures in Assam
My Musings.
My Visions.
Tax Technology
Abhibyakti
Jiwan Darshan (My biography)

* All books are available for sale.