Sales Defined by section 2 (g) of CST Act

pondy.queen · #1 (**permalink**) 08-07-2008, 12:36 PM

Sales

Meaning:

Defined by section 2 (g) of CST Act as follows :

"sale, with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration, and includes a transfer of goods on the hire-purchase or other system of payment by installments, but does not include a mortgage or hypothecation of or a charge or pledge on goods ".
Defined by section 4 of the Sale of Goods Act,1930 as follows :

"Sale and agreement to sell, -
1. A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part owner and another.
2. A contract of sale may be absolute or conditional.
3. Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.
4. An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred ".
  1. The State Laws by and large follow the above definitions for defining the sale. Apart from that, the definition clause in the State Laws may include :
  2. All deemed sales;
  3. Certain peculiar clarifications, like, transactions of government etc.;
  4. Circumstances in which sale could be regarded as within the State and so on.

Nature:

Sale as ordinarily understood
Deemed sale [as defined in Article 366(29A) of the Constitution & State Laws]

Geographical Classification:

Inside a State (liable to the State sales tax).
Inter-State (liable to Central sales tax).
Import into India (Not liable to sales tax. Liable to customs duty. Sale in the course of import not liable to tax-see section 5 of the CST Act and State Law).
Export out of India (Not liable to sales tax. Penultimate sale also not liable to sales tax-see section 5 of the CST Act and State Law).

toolikasrivastav · #2 (**permalink**) 14-07-2008, 11:36 AM

Good Pondy for the legal definition.
Some more from me :
1. The exchnage of goods or services for an amount of money or its equivalent is sales
2. Transfer of ownership in return of money is sales.
3. Selling is an art of convincing and persuading the customers to buy the product, service or an idea.

Rgds
Toolika

Nilesh P · #3 (**permalink**) 17-09-2008, 10:16 AM

Can anybody give me sales MIS format?

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