RAJASTHAN. Other enactments administered are: a. The Rajasthan Entertainment and Advertisement Tax Act b. The Rajasthan Electricity Duty Act.

Transcription

1 Sales Tax System s In India * A P rofile RAJASTHAN The Rajasthan Sales Tax Act was enacted in Levy of sales tax in the State is through Rajasthan Sales Tax Act and Central Sales Tax Act. Other enactments administered are: a. The Rajasthan Entertainment and Advertisement Tax Act b. The Rajasthan Electricity Duty Act. c. The Rajasthan Tax on Entry of motor vehicles into local areas act d. The Rajasthan video films (regulation of exhibition) Act Structure Every dealer whose total turnover in a year is Rs.l lakh and the dealer who imports goods, or manufacturers, and co-operative societies with a turnover of Rs.25,000, Rs.50,000 and Rs.70,000 respectively become liable to pay tax if their taxable turnover exceeds Rs.5,000. Point of Levy: Rajasthan has a single point levy, levied at the point of first sale. However, manufacturers have the option to shift the tax liability on the second point. 207

2 Sales Tax Systems In India: A P ro file Rate S t r u c t u r e : List I gives the details of the goods taxable at different rates ranging from 2 per cent to 30 per cent under roughly 30 groups. While List II gives out conditional exemptions the Schedule gives the details of goods exempted from tax on their purchases and sales. List III enlists the goods specified for casual traders and list IV declared goods, liquor, goods taxable at last purchase point preceding export and the goods taxable at multipoint. Annexure I to List I gives the electronic goods taxable at 4 per cent. Purchase Tax: Every dealer who purchases goods other than exempted goods in the circumstances in which no tax under the State Act is payable on the sale price of such goods is liable to pay tax on the purchase price of such goods at the same rate at which it would have been leviable on the sale price of such goods. Works C o n t r a c t : Works Contract Act was introduced in and tax is levied on works contracts relating to immovable and moveable properties, installation and fitting out. Leasing: Transfer of right to use goods is liable to tax. The rate of tax ranges from 6 per cent to 10 per cent in respect of 6 categories of specified goods, including video cassettes, video cassette recorders, air-conditioning equipment, all types of tents with their accessories, etc. However, to begin with a lumpsum yearly fee of Rs.2,500 and Rs.500 is levied on owners of tent houses depending upon their being income tax payers or not. 208

3 Sales Tax Systems in India : A P ro file E x e m p t i o n s : Schedule II and List II give the list of exempted goods like fruits, handlooms and such other goods of mass consumption and certain specific exemptions. T a x a t i o n o f I n p u t s : Raw materials purchased for the manufacture of goods other than taxable goods for sale within the State or outside the State are taxable at a concessional rate of 3 per cent. Incentives to Industries: In Rajasthan, incentives to industries are by way of exemption upto 90 per cent, 75 per cent, to very prestigious, prestigious, small/medium and large scale Industries for 9 to 11 years, 7 to 9 years and 5 to 7 years respectively. Further, there is concessional rate of 3 per cent on the purchase of raw material. Sale of machinery for setting up industry in Rajasthan in respect of cement, tobacco, sugar, electronics, food processing industries and local mineral based industries are also exempt from tax. 2. Registration For registration of a dealer under the Act, minimum turnover in the previous year should be as under: the a. Importers Rs.25,000 b. Manufacturer other than manufacturer of cooked food excluding bakery products Rs.50,000 c. Cooperative societies Rs.70,

4 Sales Tax Systems in India: A P ro file d. Dealer not Rs.1,00,000 falling in (a), (b) & (c), provided that his taxable turnover exceeds Rs 5,000 in the previous year e. Tax liability in respect of restaurants, halwais, dhabas and other eating establishments, etc. Rs.2,00, Assessment Returns: A dealer is required to file quarterly returns not later than 30 days for first three quarters and not later than 60 days for the last quarter, before the assessing authority. However, a dealer whose taxable turnover does not exceed l/10th of his turnover may obtain permission from the assessing authority to file annual returns. Further dealers dealing exclusively in exempted or tax suffered goods and whose annual turnover in the preceding accounting year does not exceed Rs.15 lakh are not required to file returns. Provisional assessment could be made in respect of the dealers failing to file return and also in cases where the assessing authority has the reason to believe that the dealer has evaded tax. Mode of Assessment: Assessments are concluded annually on the basis of the returns filed for all the periods. If the returns are not filed by the dealer or if the same are found to be incorrect or incomplete, the assessment may be concluded to the best of assessing authority's judgement and accept the return if it is found to be correct. 210

5 Sales Tax Systems In India: A P rofile Self Assessment Scheme: A new self assessment scheme was introduced in the State in the year Under this scheme assessment of dealers with a turnover not exceeding Rs.10 lakh but the taxable turnover of such dealer exceeding by at least 15 per cent over previous year is finalised on the basis of returns filed by dealer. The Act has laid down a limitation of 3 years for regular assessments to be completed. In case of escaped assessments, such limitation is 8 years. However, the Commissioner has powers to extend the limit by six months in case of regular assessments. 4. Penalty There are provisions not only for penalty but also for simple imprisonment after due prosecution in case of certain offences like non-payment of due demand, fraudulently evading the pay m e n t of tax, preventing or obstructing inspection, etc. Interest and Penalty: Every dealer who is liable to pay tax by a particular date but fails to do so is liable to pay interest at the rate of 2 per cent every month. There are a number of provisons providing for penalties to be imposed on dealer for contravention of the of the provisions of law. For avoidance and evasion of tax, a dealer may be penalised with an amount of penalty not exceeding twice the quantum of tax avoided or evaded. A dealer can be prosecuted also for certain offenses

6 Sales Tax Systems in India: A P ro file 5. Administrative Organisation Corrmissioner Commissioner, Commercial Taxes, Rajasthan, Jaipur is the Head of the Department. The post is of supertirce scale IAS. Additional Commissioner He is an IAS officer of senior scale responsible for general tax, legal, writs and revision works. He has judicial powers also. Additional Conmissioner (Anti-evasion) Additional Conmissioner (Adm) 6 Deputy Commissioners (Adm) Other Deputy Commissioners: Anti-evasion 4, Appeals-6, Tax-1, Legal-1, Revision-2 Chief Accounts Officer He is a senior scale IAS officer officer responsible for anti-evasion activities of the department. All flying squads work under his supervision. He is a supertime scale State Admnistrative Service officer who performs duties in respect of administrative works, payment, stores etc. The territory has been divided into 6 zones each headed by a Deputy Corrmissioner (Adm.). There are 5 posts of Deputy Conmissioner (Anti-Evasion), one of which is at the Headquarters and the others at Jaipur, Udaipur, Kota & Bikaner. Deputy Commissioners (Appeals) do appellate work. The remaining three posts are Deputy Commissioner (Tax), Deputy Conmissioner (Legal) and Deputy Conmissioner (Revision), respectively. There is one post of Chief Accounts Officer in the department. He is a State Accounts Services Officer, responsible for audit objections, collection of revenue figures, internal checkpost.-, accounts work, budget allotments, etc. 3 AOs and 13 AAUs work under him. 212

7 Sales Tax Systems in India: A P ro file Joint Director (Statistics) One post of Joint Director (Statistics) of the State Statistics Service is assigned at this department. Conroercial Taxes Officers, There are 68 Commercial Taxes Officers. Commercial Tax Officers (HQ), The CTOs of the circles have administ- & Assistant Corrmercial Tax rative as well as quasi-judicial Officers powers under the Act. 58 CTOs are assessing authorities who are heads of the circles, while the remaining 10 CTOs are posted in Anti-evasion, Revision, etc. 283 Asstt. Commercial Taxes Officers work in the department. They have wards which are constituents of circles. Corrmercial Taxes Inspectors Checkposts Flying Squads There are 329 Corrmercial Taxes Inspectors working in the department to assist the circle/ward Officers. About 75 border checkposts have been set up by the department. These are established with the purpose of checking tax evasion. There are internal checkposts which collect purchase tax and check evasion of tax in inter-state movement of goods. Each zone has a flying squad while there are 2 Central flying squads at the Headquarters. Tlie Officer in charge of the flying squad is an Assistant Commercial Taxes Officer who is assisted by a Commercial Taxes Inspector. The flying squads are involved mainly in transport checking, border patrolling and surveillance of the checkposts. In all, there are 12 flying squads. 213

8 Sales Tax Systems In India: A P ro file 6. Appeals An appeal under RST Act against the order of an assessing authority or officer-in-charge of checkpost can be filed before the appellate authority. Further appeal lies to the Sales Tax Tribunal. Revision lies to the High Court against an order of the Sales Tax Tribunal. If the order of an assessing authority is found to be erroneous and prejudicial to the interests of State revenue, the Commissioner has been empowered to revise such order suo moto. 7. Checkposts The Commissioner can establish a checkpost for a period not exceeding six months to collect documents relating to movement of good, to collect tax on casual commodities, purchase price of animals immediately preceding their export outside the State of Rajasthan. The State Government is empowered to establish a permanent checkpost for any period. The total number of checkposts as on was 161 out of which 89 were permanent and 72 were temporary and they are border as well as interna] checkposts (Border-96 and Internal t's).