31 March 2009
Transportation cost if charged separately, will not attract VAT. U may please refer definition of 'sale price', which is as under;-
“sale price” means the amount paid or payable as valuable consideration for any sale, including-
(i) the amount of tax, if any, for which the dealer is liable under section 3 of this Act;
(ii) in relation to the delivery of goods on hire purchase or any system of payment by installments, the amount of valuable consideration payable to a person for such delivery including hire charges, interest and other charges incidental to such transaction;
(iii) in relation to transfer of the right to use any goods for any purpose (whether or not for a specified period) the valuable consideration or hiring charges received or receivable for such transfer;
(iv) any sum charged for anything done by the dealer in respect of goods at the time of , or before, the delivery thereof;
(v) amount of duties levied or leviable on the goods under the Central Excise Act, 1944 (1 of 1944) or the Customs Act, 1962 (52 of 1962), or the Punjab Excise Act, 1914 (1 of 1914) as extended to the National Capital Territory of Delhi whether such duties are payable by the seller or any other person; and
(vi) amount received or receivable by the seller by way of deposit (whether refundable or not) which has been received or is receivable whether by way of separate agreement or not, in connection with, or incidental to or ancillary to the sale of goods;
(vii) in relation to works contract means the amount of valuable consideration paid or payable to a dealer for the execution of the works contract;
less -
(a) any sum allowed as discount which goes to reduce the sale price according to the practice, normally, prevailing in trade;
(b) the cost of freight or delivery or the cost of installation in cases where such cost is separately charged;
and the words “purchase price” with all their grammatical variations and cognate expressions, shall be construed accordingly;
Explanation.- A dealer’s sale price always includes the tax payable by it on making the sale, if any;
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