The Commercial Taxes Department of Karnataka is an important department responsible for the collection of Commercial Taxes such as Karnataka Sales Tax (KST); Central Sales Tax (CST); Entry Tax; Luxury Tax (LT), Karnataka Entertainment Tax (KET); Betting Tax (BT); Agriculture Income Tax (AIT) and Professional Tax (PT). These taxes contribute to more than two-thirds of the revenue of the State. All the collections are de-centralized and spread over 12 divisions consisting of about 500 unit level offices. Therefore a need for computerization was felt. The computerized system will help in making the existing system more efficient and effective. The first phase of computerization in the Department started in April 1995 and was implemented for handling KST and CST in five buildings within Bangalore city where the offices of the Assessment Divisions are located. The Returns Filing Software (RFS) developed for KST and CST is complete in all respects. The Software helps in providing dealers related information and generation of all required notices such as defaulters, tax not paid cases, dishonoured cheques etc. It also enables one to keep track of arrears collection, refunds etc. The User Manual for this Software has also been prepared, care has been taken to describe all the data entry screens which appear while using the package. All buildings where the offices of Assessment Divisions are located will be linked via NICNET to Division Headquarters for daily revenue collection transmission, and subsequently consolidated at Commissioners Office for the generation of daily collection statistics to be forwarded to the Finance Minister. Eventually, any statistics regarding commodity, turnover, tax at any level can be obtained at the Commissioners system itself, instead of depending on every individual office, resulting in time saving and accuracy. The first phase of computerization is in its final stages and the second phase has already been initiated with respect to site preparation and purchase activities. Necessary training has been imparted to the concerned officials and the staff using the RFS Software.