Commercial Tax
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Commercial Tax

Commercial tax in India has highly streamlines over a period of time owing to service oriented processes employed, standardization achieved and reorganizing the VAT administration so as to make commercial tax a citizen centric entity.Commercial tax department is taking great pains in order to increase their revenue from businesses and that have been able to do it by 60-70% also. Thus, it wont be wrong in saying that the commercial tax department performance is directly proportional to attractiveness of Union territories and Sates. With all this in mind, the Commercial tax in India gave way to emergence of MMP. The Commercial tax in India is super headed by Ministry of Finance and Department of Revenue along with E &Y and NISG’s consultation.

In order to make the administration process of Commercial tax in India simpler, various recommendations have come into effect. These have also helped in decreasing the processing time of Commercial tax in India.

Some of the major approvals made in Commercial tax in India include

  • Filing returns of commercial tax electronically.
  • Refunds on commercial tax cleared online.
  • Online commercial tax payment .
  • Making dealer ledger online.
  • CST form issued online for commercial tax payment through TINXSYS Tax Information Exchange System.
  • Facilitating the dealers to get information about various commercial tax services through internet.

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Principles Of Commercial Tax In India

  • As per the commercial tax department, any good sold or purchased is recorded only if the ownership rights of the goods are transferred and money is involved in the process of transfer.
  • The commercial tax department has made different categories in which the goods are disintegrated. Thus, different commercial tax rates are charged for different goods categories.
  • The commercial tax department has made one single point where the tax is charged for the purchase or sale of a commodity.
  • The commercial tax department has brought into account certain laws at the state level that assess dealer, agent and manufacturer’s commercial tax under different heads and categories. Different rate of commercial tax is levied on different levels and different parties involved.
  • As per the commercial tax department, all the required documents have to be brought and showed by the commercial tax payer to the concerned officer from commercial tax department.
  • A quarter of return has to be furnished on the sale and purchase of the good as per the commercial tax department. The procedure for filing return of commercial tax in India is separately mentioned at the state level. Every dealer should therefore follow the commercial taxprocedure followed in his state and apply for registration and take registration certificate from department of commercial tax in India in the form of cash memo or bill.

Where All Commercial Tax In India Is Applied?

Commercial tax in India is used for commodity classification. It helps in determining levy point. Rate of tax is judged by commercial tax in India. Ascertain the modification / exemption / changes in the classification point of levy rate of tax determine the applicable/effective rate of tax. The information could be used for:

  • Planning a transaction
  • Locating a transaction
  • Execute a transaction
  • Identify sources of purchase
  • Budgeting costs for tender
  • Comparative position
  • Competitive bidding, and so on
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