GOODS Section 2(12): Goods means every kind of moveable property Does not include: Newspapers, actionable claims,

money, stocks, shares, securities or lottery tickets Includes: Live stocks, growing crop, grass and trees and plants including the produce thereof including property in such goods attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; CAPITAL ASSETS Section 2(5): capital asset shall have the same meaning as assigned to it, from time to time, in the Income Tax Act, 1961, but the said expression shall not include jewelry held for personal use or property not connected with the business; Capital asset defined under Sub-Section 14 of Section 2 of the Income Tax Act as given below:

i. ii.

Any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession ; Personal effects, that is to say, movable property (including wearing apparel and furniture) held for personal use by the assessee or any member of his family dependent on him, but excludes a. Jewellery; b. Archaeological collections; c. Drawings; d. Paintings; e. Sculptures; or f. Any work of art. Explanation. For the purposes of this sub-clause, jewellery includes

g.

h.

Ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel; Precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;

iii.

Agricultural land in India, not being land situate a. In any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been

b.

published before the first day of the previous year ; or In any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette ;

iv. v. vi.

6 per cent Gold Bonds, 1977,[or 7 per cent Gold Bonds, 1980,] [or National Defense Gold Bonds, 1980,] issued by the Central Government; Special Bearer Bonds, 1991, issued by the Central Government; Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government;

As per the definition the Act any asset to be qualified as capital asset the asset should be connected with the business and the definition specifically excludes jewellery held for personal use. From the combined reading of the definition in the Act and Income Tax Act, it may be observed that the capital asset (Excluding the above six) may include property of every di9scription, movable or immovable, fixed or circulating tangible or intangible, corporeal or noncorporeal provided they are connected with the business, corporeal means physical things like land, building, jewellery, shares, cars, etc. Non corporeal means assets like leasehold rights, copyrights, manufacturing license, rout permits of buses, tenancy rights etc.

DEALER
Dealer Section 2(8): "Dealer" means any person who buys or sells, goods in the State in connection with his business includes,-

i.

A factor, broker, commission agent, del-credere agent or any other mercantile agent, by whatever name called, who for the purposes of or consequential to his engagement in or in connection with or incidental to or in the course of the business, buys or sells any goods on behalf of any principal or principals whether disclosed or not; An auctioneer who sells or auctions goods whether acting as an agent or otherwise or, who organizes the sale of goods or conducts the auction of goods whether or not he has the authority to sell the goods belonging to any principal whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal; A non resident dealer or as the case may be, an agent. Residing in the State of a non-resident dealer, who buys or sells goods in the State for the purposes of or consequential to his engagement in or in connection with or incidental to or in the course of, the business.

ii.

iii.

iv.

Any society, club or other association of persons which buys goods from, or sells goods to, its members;

The following persons who sell any goods whether by auction or otherwise shall be deemed to be dealer

i. ii. iii. iv.

Customs Department of the Government of India administering the Customs Act, 1962; Departments of Union Government and any Department of any State Government; Incorporated or unincorporated societies, clubs or other associations of persons; Insurance and Financial Corporations, institutions or companies and Banks included in the Second Schedule to the Reserve Bank of India Act, 1934; Local authorities; Maharashtra State Road Transport Corporation constituted under the Road Transport Corporation Act, 1950; Port Trusts; Public Charitable Trusts registered under the Bombay Public Trusts Act, 1950; Railway Administration as defined under the Indian Railways Act, 1989 and Konkan Railway Corporation Limited; Shipping and construction companies, air transport companies, airlines and advertising agencies; any other corporation, company, body or authority owned or constituted by, or subject to administrative control, of the Central Government, any State Government or any local authority:

v. vi. vii. viii. ix. x. xi.

This subsection has provided three exceptions to the general definition of the dealer

i. ii.

An agriculturist, who sells exclusively agricultural produce grown on land cultivated by him personally, shall not be deemed to be a dealer within the meaning of this clause. An educational institution carrying on the activity of manufacturing, buying or selling goods, in the performance of its functions for achieving its objects, shall not be deemed to be a dealer within the meaning of this

clause. iii. A transporter holding permit for transport vehicles (including cranes) granted under the Motor Vehicles Act, 1988, which are used or adopted to be used for hire or reward shall not be deemed to be a dealer within the meaning of this clause in respect of sale or purchase of such transport vehicles or parts. Components or accessories thereof.

IMPORTER
Section 2(13): Importer means a dealer who brings any goods into State or to whom any goods are dispatched from any place outside State;

PURCHASE PRICE
Section 2(20): Purchase Price means the amount of valuable consideration paid or payable by a person for any purchase made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged. Notes: Duties levied or leviable under Central Excise Act, 1944, or the Customs Act, 1962 or the Bombay Prohibition Act, 1949 is to be included in the Purchase Price. Deposit whether refundable or not which has been paid whether by way of a separate agreement or not, in connection with or incidental or ancillary to the said purchase of goods is to be included in Purchase Price. Purchase price shall not include tax paid or payable by a person in respect of such purchase. The amount of valuable consideration paid or payable by a dealer for the purchase of drugs specified in entry 29 of Schedule C shall be the maximum retail price (MRP) printed on the package containing the drugs. Where the purchase is effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, purchase price shall be the contract price. Works contract comprises of both goods and services and for the purpose of levy of VAT, purchase price is determined by reducing the price of the services (the rules for the same are prescribed in this Act). Purchase price shall not include the tax paid under this act (i.e. VAT which is shown separately in the invoice).

SALE
Section 2(24): Sale means a sale of goods made within the State for cash or deferred payment or other valuable consideration but does not include a mortgage, hypothecation, charge or pledge; and the words sell, buy and purchase, with all their grammatical variations and cognate expressions, shall be construed accordingly. Notes: For meaning of A sale within the State refer section 4 of the Central Sales Tax Act, 1956; It also includes following transactions: o Unless it is in pursuance of contract the transfer of property in any goods for cash, deferred payment or other valuable consideration. The transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract including, an agreement for carrying out the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property for cash, deferred payment or other valuable consideration. A delivery of goods on hire-purchase or any system of payment by installments. The transfer of the right to use any goods or any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. The supply of goods by any association or body of persons incorporated or not, to a member thereof or other valuable consideration. The supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is made or given for cash, deferred payment or other valuable consideration.

SALE PRICE

Section 2(25): Sale Price means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged. Notes: Duties levied or livable on goods under the Central Excise Act, 1944 or the Customs Act, 1962 or the Bombay Prohibition Act, 1949, shall be included in the Sales Price Deposit whether refundable or not which has been collected by seller whether by way of a separate agreement or not, in connection with or incidental or ancillary to the said sale of goods is to be included in Sales Price The amount of valuable consideration paid or payable of a dealer for the sale of Drugs specified in entry 29 in Schedule C shall be the maximum retail price (MRP) printed on the package containing the Drug. Sales price shall not include the tax paid under this act (i.e. VAT which is shown separately in the invoice) Sales Price in works contract: - In case of works contract sales price means the total consideration for the works contract, however for the purpose of levy of sales price shall be determined in accordance with the rules. This is because as per the constitutional provisions only the value of goods transferred to the contractee in execution of works contract is liable to Value Added Tax

TURNOVER OF PURCHASE
Section 2(32): Turnover of purchases means the aggregate of the amounts of purchase price paid and payable by a dealer in respect of any purchase of goods made by him during a given period, after deducting the amount of, a. purchase price, if any, refunded to the dealer by the seller in respect of any goods purchased from the seller and returned to him within 6 (six) months; and b. Deposit, it any, refunded in the 6 (six) months to the dealer by the seller, in respect of any goods purchased by the dealer. Notes: In respect of goods delivered on hire-purchase (or any system of payment by installment) or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of purchase price paid or payable during a given period shall mean the amounts paid or amount that is due and payable during the said period.

TURNOVER OF SALE
Section 2(33): Turnover of Sales means the aggregate of the amounts of sale price received and receivable by a dealer in respect of any sale of goods made during a given period after deducting the amount of a. Sale Price, if any, refunded by the seller, to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period; and b. Deposit, if any, refunded in the prescribed period, by the seller to a purchaser in respect of any goods sold by the dealer. Notes: In respect of goods delivered on hire-purchase (or any system of payment by installment) or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of sale price paid or payable during a given period shall mean the amounts paid or amount that is due and payable during the said period. Where the registration certificate is cancelled, the amounts of sale price received or receivable in respect of sales made before the date of the cancellation order shall be included in the turnover of sales during a given period.