India has a well developed tax structure with the authority to levy taxes, divided between the Central Government and the State Governments.
The Central Government levies direct taxes such as personal income tax, corporate tax and wealth tax, as well as indirect tax such as customs duty, excise duty, central sales tax and service tax. The State Governments are empowered to levy state sales tax and various other local taxes, on different grounds and for various benefits.
Taxes levied by Government of Rajasthan (State Level Taxes)
Value Added Tax (VAT)
The levy and collection of VAT in Rajasthan is governed by the Rajasthan VAT Act, adopted in 2003.
Subject to the provisions of this Act, every dealer:
- who is an importer of goods; or
- who is a manufacturer of goods and whose annual turnover exceeds
2,00,000; or - whose annual turnover exceeds 10,00,000
shall be liable to pay tax under this Act.
VAT rate ranges from 0% to 14% for different kinds of goods. Few defined list of goods are taxable at special rates ranges from 14% to 50% as specified in Schedule VI of the Act.
For details, visit www.rajtax.gov.in.
Entry Tax Goods
This tax in Rajasthan is governed by Rajasthan Tax on Entry of Goods into Local Areas Act, 1999. The tax payable by a dealer under this Act in respect of the good specified therein and brought into any local areas, for consumption or use or sale therein, shall be payable at such rate as has been mentioned in the Act. The rate ranges from 0.25% to 12.5%. Specific exemption from entry tax has been provided to these goods wherein they are sold in Rajasthan.
For details, visit www.rajtax.gov.in.
Entertainment Tax
The notified rate of entertainment tax in Rajasthan is 30% of the payment on admission to an entertainment. Entertainment tax is completely abolished in case of cinema halls, cable TV and DTH connection.
For details please visit www.rajtax.gov.in.
Electricity Duty
| S.No. | Category of Use | Rate of Electricity Duty (per unit) |
| 1. | Commercial, Domestic and Others | 40 paisa |
| 2. |
Industrial (other than Industries mentioned at S.No. (ii) of item no. 2) | 40 paisa |
| Industrial (including furnace using mild Steel scrap & mild steel re-rolling mills) |
52 paisa |
|
| 3. | Temporary Connection | 40 paisa |
| 4. | Agricultural | |
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| 5. | Urban Cess | 15 paisa in municipal areas |
For details, visit www.rajtax.gov.in.
Luxury Tax (in Hotels and Lodging Houses)
| If rate of charges for luxuries is | Rate of Tax |
| 3,001 and more per day or part thereof |
*10% w.e.f. 08-07-2009 |
| 3,001 and more per day or part thereof in case of heritage hotel |
8% w.e.f. 08-07-2009 |
*During off season (i.e. in month April, May, June, July) rate of tax is deducted to 50%, except Mount Abu.
Explanation: Heritage hotel means heritage hotel as defined under the Scheme declared by Department of Tourism, Govt. of Rajasthan.
