Bhopal: Madhya Pradesh has posted a
close to four fold increase in commercial taxes revenue over last
seven years. This creditable achievement, despite exempting many
commodities and reducing rates on some others, is attributable to
efficient tax administration, effective curb on evasion and
positive attitude of traders.
The commercial tax revenue in year 2003-04 was Rs. 3,952.25 crore,
which rose to Rs. 12,342.16 crore in 2010-11. This increase
assumes greater significance given the fact that VAT on many items
has been removed and reduced on some others. These taxes include
Central Sales Tax, VAT Entertainment Tax, Hotel Tax, Professional
Tax etc. The buoyancy in tax collection has pushed the development
of the state.
In the year 2003-04, revenue of Rs. 2,916.73 crore was received by
way of VAT, Rs. 454 crore through Central Sales Tax, Rs. 392.71
crore as Entertainment Tax, Rs. 184.58 crore and Rs. 4.21 crore as
Compared to this, revenue of Rs. 9679.91 crore was received by way
of VAT, Rs. 682.72 crore through Central Sales Tax, Rs. 1745.78
crore as Entertainment Tax, Rs. 15.79 crore as Hotel Tax and Rs.
217.96 crore as Professional Tax.
This significant increase in commercial tax revenue has been
achieved despite exempting food grain, pulses, farm implements and
fuel wood from VAT. Earlier, a 4 per cent VAT was payable on these
commodities. The VAT on diesel has been reduced from 28.75 per
cent to 25 per cent. The reduction is 3.75 per cent. From April 1,
last year the parts of flour mill and Isabgol were exempted from
VAT. The products of research and training institutes were
exempted to the extent of Rs. 25 lakh annual. The VAT on cooked
food has been reduced from 13 percent to 5 percent. Besides, the
metal used for manufacturing coins has been exempted from Entry
Tax. The foot wares priced up to Rs. 250 has been exempted from
Entry Tax on other commodities has also been reduced.
Online Facilities for Traders
The Commercial Taxes Department has provided a number of online
facilities for the convenience of traders making the best possible
use of Information Technology. Following this, now the traders no
longer need to visit the circle offices in person to get their
works done. Most of their works are done online.
First the facility of online downloading Form-49 was introduced.
Encouraged by the response of traders some other facilities were
provided online. These include e-return, e-registration, Form-60
etc. At present there are 2 lakh 40 thousand registered traders in
the state and out of them over 90 per cent are availing online
The facility of online downloading the declaration form (form-49)
pertaining to check post has provided following which now these
forms are available free of cost to the traders. So far, 5,57,967
Form-49 have been downloaded.
Now the tension of check post is also gone. If a trader enters
duly filled declaration on the web portal giving the date and time
of entering, the transporter does not need to get it passed from
the check post. If there is no check post on the route in that
case, too, he need not visit the nearest circle office.
The facility of filing online statement has also been made
available on the web portal. So far, 58,795 traders have availed
Similarly, 5,792 traders have availed the facility of online
application for registration in the department. The TIN is issued
to the trader the same day and its information is provided on the
The declaration form (form-60) for goods transportation from
railway premises can also be obtained online. Now there is no need
to get the railway declaration form endorsed at the circle office.
The verification of registration certificate is also done online.
With this facility now the traders can avoid dealing with such
traders who are not registered or whose registrations have been