A Simple note on Rajasthan: Department of Commercial Taxes

Rajasthan was formed by combining the former princely governmental states of Marwar and Ajmer with the centrally governed regions of Marwar and Ajmer. Every state had its own taxation system, which differed from one another. After the formation of Rajasthan, the Taxation and Excise Department became the primary tax collection authority in the state, with its headquarters in Udaipur.

What is Commercial tax?

Commercial Tax, also known as Goods and Services Tax (GST) in India, is a tax collected on both locally manufactured and imported goods and services that contributes to the country’s GDP. Commercial tax, on the other hand, has some exceptions. It is also known as the consumer tax, and it does not apply to zero-rated commodities, such as food and certain pharmaceuticals, or to goods that are exported.

Commercial Taxes and Their Types:

• Consumption-based– Because investments are exempt from taxation under the Consumption type commercial tax, the tax base is consumption. Because it is the most often utilised commercial tax, the term ‘commercial tax’ usually refers to the consumption kind.

• Income type– Capital goods purchased from other organisations during the year of purchase are included in the tax base of this form of commercial tax.

• Gross National Product (GNP) Type – Capital goods purchased from another organisation cannot be deducted from the tax base in the year of purchase under the GDP type of commercial tax. The Gross Domestic Product serves as the tax base for GDP-type commercial taxes.

• Sales-based Commercial Tax – A sales-based commercial tax is a contingency that includes a proportion of the gross value of items and services in addition to the final sale price.

• Excise-based Commercial Tax- An excise-based commercial tax is imposed on a specific category of goods and services, such as cigarettes, gasoline, and alcohol.

• VAT-based Commercial Tax- A commercial tax or Value-Added Tax is calculated on the net value of a product or service, which serves as the tax base.

• Consumption-based Commercial Tax – Individuals and businesses are both subject to a consumption commercial tax. These taxes, sometimes known as consumer commercial taxes, are based on the rate of purchase for a certain product or service.

• Business Commercial Tax- Apart from the sort of products and services, the nature of the business determines this tax. It also applies to commodities and products imported from other countries.

Department of Commercial Taxes of Rajasthan:

Rajasthan’s Department of Commercial Taxes is in charge of sales tax, entertainment tax, entry tax, luxury tax, electricity duty, and passenger and goods taxes. The Products and Services Tax (GST), the Value Added Tax (VAT), the entrance tax for goods, the entertainment tax, the luxury tax, the electricity charge tax, and other taxes are discussed. Acts, rules, judgments, forms, schemes, and other details are presented. E-registration, e-payments, e-returns, e-refunds, e-declaration of products (VAT), list of dealers, and other e-services are available to users.

Finance Department of Rajasthan:

Recruitment, appointment, and promotions of Rajasthan Accounts Service, Rajasthan Excise Service (except transfers of Asstt. Excise Officers), Rajasthan Commercial Taxes Service (except transfers of Asstt. Commercial Taxes Officers), Rajasthan State Insurance Service, and Appeals under CCA Rules for Subordinate Accounts Service / Subordinate Provident Fund / State Insurance Service are all handled by the Department of Finance. In subjects such as GF & AR and Finance Rules, the Department of Finance serves as a guidance to various departments. Rules are being established and amended to keep up with the changing times in order to provide efficient finance administration.

Conclusion:

The Ministry of Finance in India is responsible for the Goods and Services Tax Department. In India, there is a Goods and Services Tax Department in each state. Each of them has been charged with developing and enforcing regulations for levying, determining the rate for various types of products and services, setting payment deadlines, filing returns, and collecting commercial taxes in their respective states.

Commercial Taxes Department of Rajasthan is managing 7 significant laws namely:

Rajasthan Value Added Tax Act 2003

Central Sales Tax Act 1956

Rajasthan Entertainment & Advertisements Tax Act 1957

The Rajasthan Electricity Act 1962

Rajasthan Tax on Motor Vehicles entry into Local Areas Act 1988

Rajasthan Tax on Luxuries Act 1990

Rajasthan Tax on Goods entry into local Areas Act 1999