The State of Rajasthan, was formed with the merger of former princely governed States and centrally administered territories of Ajmer & Marwar. Each state had its own different Taxation system. After formation of Rajasthan, Excise & Taxation Department started functioning as the main Tax Collection authority in the State, with headquarters at Udaipur. There was a post of Additional Commissioner Sales Tax with a small strength of staff to look after the sales tax revenue with headquarter at Jaipur. It was under the administration of Excise & Taxation Department.

In the year 1964, the State Excise Department was separated and Department was renamed as Commercial Taxes Department. The department was administering Sales Tax, Entertainment Tax, Electricity Duty and Tax on Passengers & goods. Again in the year 1974, the administration of Tax of passengers & goods was transferred and assigned to the Transport Department. The Department was also given responsibility to administer the Rajasthan Tax on Entry of Motor Vehicles into Local Areas Act in 1988, the Rajasthan Video Films (regulation of Exhibition) Act, 1990, the Rajasthan Tax on Luxuries (Tobacco and its Products) Act in 1994 and the Rajasthan Tax on Luxuries (In Hotels and lodging houses) Act in1997. Thus the Department is administering ten important laws which are as follows :-

(i) The Rajasthan Sales Tax Act, 1994.
(ii) The Central Sales Tax Act, 1956.
(iii) The Rajasthan Entertainment and Advertisements Tax Act, 1957.
(iv) The Rajasthan Electricity (Duty) Act, 1962.
(v) The Rajasthan Tax on Entry of Motor Vehicles into Local Areas Act, 1988.
(vi) The Rajasthan Video Films (regulation of Exhibition) Act, 1990.
(vii) The Rajasthan Tax on Luxuries (Tobacco and its Products) Act, 1994 .
(viii) The Rajasthan Tax on Luxuries (In Hotels and Lodging houses) Act 1997.
(ix) The Rajasthan Tax on Entry of Goods into Local Areas Act, 1999.
(x) The Rajasthan Tax on Professions, Trades and Callings Act, 2000.

The Department is a major contributor to the Tax Revenue collected by the State Government. Nearly 50 per cent of the Tax Revenue received by the State Government.

Zonal Administration

For administrative convenience, the state has been divided into 11 zones, namely; Jaipur Zone-I, Jaipur Zone-II, Jodhpur, Pali, Bikaner, Sriganganagar, Alwar, Ajmer, Kota and Udaipur and Bhilwara. Each zone is headed by Deputy Commissioner(Adm.), who looks after the administrative, legal and Anti-Evasion work in their zones.

Appellate Authorities

There are seven office of Deputy Commissioner (Appeals) who decide matters relating to appeals filed in consequence of the orders passed by the assessing authorities. These offices of Deputy. Commissioner (Appeals) are located at Ajmer, Jaipur-I, Jaipur-II, Bikaner, Udaipur Jodhpur and Kota.

Circles and Wards

Each zones has divided into Circles and each Circle has Wards, which are basic unit of tax administration. The main functions of Circles and Wards are to register (independent wards in case of wards) and assess dealers, collect revenue and effect recoveries. They are also responsible for preventing tax evasion by conducting anti evasion activities in their areas of tax by organising anti-evasion activities. The number of regular circles is 56 in the Department.

There are two to three wards in a regular circles, which is headed by Assistant Commercial Taxes Officer. They have pecuniary jurisdiction over dealers having turnover upto Rs. 40 lac. The number of wards in regular circles is 168. One post of A.C.T.O. has been provided in each Works Contract and Leasing Circles.

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