Commercial Taxes

PROFILE OF COMMERCIAL TAXES DEPARTMENT

Commercial Taxes Department plays a very significant role in the internal resources mobilisation of the State Government of Jharkhand and accounts for almost 70% of the total internal resources. Soon after the creation of the new state of Jharkhand, the Commercial Taxes Department was constituted in the State under the Finance, Institutional Finance and National Savings Department.

Presently the Secretary of Commercial Taxes is the Head of the Department who also holds the additional charge of Commissioner, Commercial Taxes.

There are 28 Commercial Taxes Circles organised under 5 divisions in the State. The total collection of these 28 circles in the financial year 1999-2000 was Rs. 910.46 Crores which grew to Rs.1060.40 Crores in the year 2000-2001out of which as much as Rs. 614.96 Crores was collected in the period 15-11-2000 to 31-03-2001 i.e. after the creation of Jharkhand state.

The updated figure of collection of the Department is as follows:-

COMPARATIVE FIGURE OF REVENUE

COLLECTION OF 5 YEARS IS AS UNDER :-

					Figure In Lacs
Name of Division	2001-2002	2002-2003	2003-2004	2004-2005	2005-2006
Ranchi	45801.09	52041.44	60700.43	72011.92	86996.14
Jamshedpur	39353.84	38559.98	46022.78	58949.66	72633.78
Dhanbad	28661.30	31708.57	37124.09	42227.90	46973.22
Hazaribagh	14237.33	16727.11	19913.01	22941.88	25002.82
Santhal Paragana	4958.98	5416.58	6184.48	6245.3	6518.70
(State Total)	133012.54	144453.68	169944.79	202376.66	238124.66
% of Growth Rate -	25.44%	8.60%	17.65%	19.08%	17.66%

ACTS

THE COMMERCIAL TAXES DEPARTMENT ADMINISTERS THE FOLLOWING 'ACTS' UNDER WHICH DIFFERENT TAXES ARE COLLECTED.

Sl. No.	Name of Act	Tax
1	Jharkhand Value Added Tax Act, 2005	VAT
2	Central Sales Tax Act,1956	C.S.T.
3	Electricity Duty Act, 1948	Electricity Duty
4	Entertainment Tax Act, 1948	Entertainment Tax
5	Tax on Luxuries in Hotels Act, 1988	Hotel Luxury Tax

SALIENT FEATURES OF VALUE ADDED TAX SYSTEM IN VOGUE

From 01.04.2006 the Value Added Tax System (VAT) has been implemented in the State in place of old Sales Tax System. VAT is a multipoint tax system, where tax is levied on every point of sale on the addition of value in course of every point of sale, till it goes to the consumer.

1	For the Dealer, who deals in the commodities purchased within the State - 5 Lakh
2	The dealer who imports commodities from outside the state -NIL
3	For manufacturers - 2 Lakh
4	For work contractors - 25 thousand.