Rajasthan is a land of royalties and today’s Rajasthan is a conglomeration of princely states and territories of Marwar and Ajmer. Initially, every state followed a different commercial tax Rajasthan. However, as the Rajasthan commercial tax department came into being, with its headquarters at Udaipur, things took a u-turn and process of collection of commercial tax Rajasthan became more functional. At Jaipur, Rajasthan commercial tax department came up with Additional Commissioner Sales Tax post in order to ensure that the revenue from sales tax is collected rightfully. However, it was governed by Rajasthan commercial tax department only.
With times changing, a change came in commercial tax Rajasthan also. The State Excise Department got divided for better functioning and was thereafter called Rajasthan commercial tax department. Thus, Rajasthan commercial tax department looked after the entertainment tax, sales tax, goods and passenger tax and duty on electricity. However, commercial tax Rajasthan gave away tax on goods and passengers to Transport Department in the year 1974. Similarly motor vehicle entry in the state was also taken from commercial tax Rajasthan to transport department in the year 1988. With the emergence of Rajasthan Tax on Luxuries in 1997, which applied on lodging and hotels, commercial tax Rajasthan got more streamlined. Rajasthan commercial tax gave way to Rajasthan Value Added Tax and Rajasthan Tax on Goods Entering the State.
Therefore, presently the Rajasthan commercial tax department is looking after the following areas:
- Rajasthan commercial tax for Value Added.
- Rajasthan commercial tax for Central Sales.
- Rajasthan commercial tax for Entertainment and Advertisement.
- Rajasthan commercial tax for Electricity.
- Rajasthan commercial tax on Luxuries.
- Commercial Tax Rajasthan for Motor Vehicles and Entry of Goods in the state.
One of the prime works of the Rajasthan commercial tax department is to ensure that State Government collects the tax revenue and makes its contribution.