The state of Chhattisgarh has a commercial tax department that is in charge of levying and collecting the taxes through VAT abbreviated as Value Added Tax, ET named as Entry Tax, CST called as Central Sales Tax, LT abbreviated as Luxury Tax and finally PT termed as Professional Tax from the various dealers. The department of Commercial Tax is chiefly responsible for collecting revenues in the state of Chhattisgarh. The following acts have been implemented under various rules:-
- Central Sales Tax Act, 1956;
- Chhattisgarh Entry Tax Act, 1976;
- Chhattisgarh Luxury Tax Act, 1988;
- Chhattisgarh Commercial Tax Act, 1994;
- Chhattisgarh Professional Tax Act, 1995; and
- Chhattisgarh Value Added Tax Act, 2005
Analysis of Budget Preparation
The budget of collecting the revenues for the current year is prepared considering the amount of revenue collected in the previous year. There is always seen an increase in the revenue for the estimated year. The Finance department of the state is responsible of approving the budgeted proposal that is sent by the Commercial tax department. After the further discussions within the finance department the budget is given the approval.
The Principal Secretary of Finance has the power to manage the entire Commercial Tax department. The Official who is responsible for controlling the department is the Commissioner while he gets support of 4 numbers of Additional Commissioner and 8 numbers of Deputy Commissioners. The state is split in to 5 divisions and total 27 circles administered by DC and CTO at division and circle level respectively.
The main purpose with which the department has been created is to improvise practices involved in collection of taxes.
The aim for creating this system is to simplify and balance the system of tax in order to improvise the tax collection and expanding the trade and commercial activities.
To prove the supremacy and to show that the kings have concern for the subjects of its jurisdiction that tax were collected extensively.
The Commercial tax department takes steps to improvise system of the department by implementing the transparency.