BP Associates LLP

2. Definitions

            In this Act, unless there is anything repugnant in the subject or context, -

(a) "Appellate Board" means the Appellate Board constituted under section 4;

(b) "Appellate Authority " means an Authority appointed under section 3 A.2

(c)``Assistant Commissioner’’ means an Assistant Commissioner of Commercial Tax appointed under Section 3 and includes an Additional Assistant Commissioner of Commercial Tax; 

(d) “Business “ includes, -

(i) any trade, commerce, manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern and irrespective of the volume, frequency, continuity or regularity of such trade, commerce,

manufacture, adventure or concern; and

(ii) any transaction of sale or purchase of goods in connection with or

incidental or ancillary to the trade, commerce, manufacture, adventure or

concern referred to in clause (i), that is to say –

(a) goods whether or not they are in their original form

or in the form of second hand goods, unserviceable

goods, obsolete or discarded goods, mere scrap or

waste material; and

(b) goods which are obtained as waste products or byproducts

in the course of manufacture or

processing of other goods or mining or generation

of or distribution of electrical energy or any other

form or power;

3 /4 (e) "Canteen stores" means the goods included in part IV of Schedule II, but

excluding such goods as the State Government may by *notification specify;3 /4

(f) " Commercial Tax Office " means an office of any Officer appointed under

section 3 of this Act.

(g) “Commercial Tax Officer” means a Commercial Tax Officer appointed under

Section 3 and includes an Additional Commercial Tax Officer;

(h)“Commissioner” means the Commissioner of Commercial Tax appointed under

Section 3;

23. (ha) "Cooked food" means meal prepared and served by hotels, restaurants and the

like, including prepared tea and prepared coffee: 23.

(i) “Dealer” means any person, who carries on the business of buying, selling, supplying

or distributing goods, directly or otherwise, whether for cash, or for deferred payment

or for commission, remuneration or other valuable consideration and includes -

(i) a local authority, a company, an undivided Hindu family or any society

(including a co-operative society), club, firm or association which carries on

such business;

(ii) a society (including a co-operative society), club, firm or association which

buys goods from, or sells, supplies or distributes goods to its members;

(iii) a commission agent, broker, a del-credere agent, an auctioneer or any

other mercantile agent, by whatever name called, who carries on the business of

buying, selling, supplying or distributing goods on behalf of the principal;

(iv) any person who transfers the right to use any goods including leasing thereof

for any purpose, (whether or not for a specified period) in the course of business

to any other person;

Explanation I - Every person who acts as an agent of a non- resident dealer, that

is as an agent on behalf of a dealer residing outside the State and buys, sells,

supplies or distributes goods in the State or acts on behalf of such dealer as -

(i) a mercantile agent as defined in the Sale of Goods Act, 1930 (III of 1930); or

(ii) an agent for handling goods or documents of title relating to goods; or

(iii) an agent for the collection or the payment of the sale price of goods or

as a guarantor for such collection or payment, and every local branch of a firm or

company situated outside the State,

shall be deemed to be a dealer for the purpose of this Act.

Explanation II - The Central or a State Government or any of their departments or

offices which, whether or not in the course of business, buy, sell, supply or

distribute goods, directly or otherwise, for cash or for deferred payment, or for

commission, remuneration or for other valuable consideration, shall be deemed to

be a dealer for the purpose of this Act.

Explanation III - Any non-trading, commercial or financial establishment including a

bank, an insurance company, a transport company and the like which whether or

not in the course of business buys, sells, supplies or distributes goods, directly or

otherwise, for cash or for deferred payment, commission, remuneration or for

other valuable consideration, shall be deemed to be a dealer for the purposes of

this Act:

(j) The expression “declared goods” shall have the meaning assigned to it in the

Central Sales Tax Act, 1956 (No.74 of 1956);

(k) “Deputy Commissioner” means a Deputy Commissioner of Commercial Tax

appointed under Section 3 and includes an Additional Deputy Commissioner

of Commercial Tax ;

(l) “Document” means title deeds, writings or inscriptions and includes "electronic record"

and "electronic form" as defined in the Information Technology Act, 2000 (No.21 of

2000) and the like that furnishes evidence;

(m) “Goods” means all kinds of movable property including computer software but

excluding actionable claims, newspapers, stocks, shares, securities or Government

stamps and includes all materials, articles and commodities, whether or not to be

used in the construction, fitting out, improvement or repair of movable or immovable

property, and also includes all growing crops, grass, trees, plants and things attached

to, or forming part of the land which are agreed to be severed before the sale or

under the contract of sale;

(n) "Import" means the bringing or causing to be brought of goods in to the State of

Madhya Pradesh from any place outside the State;

(o) 2'' input tax'' means an amount paid or payable by way of tax under section 9 by a

registered dealer in respect of the purchase of any goods specified in Schedule

II , to a selling registered dealer and who is liable to pay tax under the said

section on the sale of such goods; 2

(p) “Manufacture” includes any activity that brings out a change in an article or articles

as a result of some process, treatment, labour and results in transformations into a

new and different article so understood in commercial parlance having a distinct

name, character and use, but does not include such activity of manufacture as may

be *notified*;.

(q) “Place of business” means any place where a dealer purchases or sells any goods

or stores goods or keeps documents or accounts of his purchases or sales or both

and also includes -

(i) the place of business of an agent where a dealer carries on business through

an agent;

(ii) any place or building whether any business is carried on therein or not, in

which the person carrying on the business, keeps any of his books of

accounts, documents, stocks or other things, relating to his business;

(iii) any vehicle or vessel or any other carrier wherein goods are stored or used

for transporting goods;

(r) "prescribed" means prescribed by rules made under this Act;

(s) “Purchase price” shall comprise of -

(i) the amount payable by a dealer as valuable consideration for the purchase of

goods ‘ simplicitor ’;

Provided that where goods are purchased together with the packing

material or container, then notwithstanding anything contained in this Act, the

purchase price of such goods shall be inclusive of the price or cost or value of such

packing material or container, whether such price or cost or value is paid separately

or not as if such packing material or container were the goods purchased;

(ii) transport costs, if any;

(iii) trade commission, if any, by whatever name called;

(iv) forwarding and handling charges, if any;

(v) insurance charges, if any;

(vi) local taxes, if any;

(vii) excise duty, if any, leviable under the Central Excise Act, 1944 (No.1 of

1944);

(viii) cost of packing, if any; and

(ix) any other charges or costs other than those specified above, if incurred or

paid in respect of goods so purchased;

Explanation -For the purpose of this clause “transport cost” includes such

expenses as are incurred by the dealer on transportation of goods after taking delivery

from the seller;

(t) “Registered dealer” means a dealer registered under this Act;

(u) “Sale” with all its grammatical variations and cognate expressions means any

transfer of property in goods for cash or deferred payment or for other valuable

consideration and includes -

(i) a transfer, otherwise than in pursuance of a contract, of property in any goods

for cash, deferred payment or other valuable consideration;

(ii) a transfer of property in goods whether as goods or in some other form,

involved in the execution of works contract;

(iii) a delivery of goods on hire purchase or any system of payment by

instalments ;

(iv) a supply of goods by any unincorporated association or body of persons to a

member thereof for cash, deferred payment or other valuable consideration;

(v) a 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 for cash,

deferred payment or other valuable consideration;

(vi) a transfer of the right to use any goods including leasing thereof for any

purpose (whether or not for a specified period) for cash, deferred payment or other

valuable consideration,

and such transfer, delivery or supply of any goods shall be deemed to be a sale of those

goods by the person making the transfer, delivery or supply and purchase of those

goods by the person to whom such transfer, delivery or supply is made, but does not

include a mortgage, hypothecation, charge or pledge;

Explanation - (a) Notwithstanding anything contained in the Sale of Goods Act, 1930 (III

of 1930), where a sale or purchase of goods takes place in pursuance of a

contract of sale, such sale or purchase shall be deemed for the purposes of

this Act to have taken place in the State of Madhya Pradesh irrespective of

the place where the contract of sale or purchase might have been made, if

the goods are within the State -

(i) in the case of specific or ascertained goods, at the time the contract

of sale or purchase is made; and

(ii) in the case of unascertained or future goods, at the time of their

appropriation to the contract of sale or purchase by the seller or by the

purchaser, whether the assent of the other party is prior or subsequent

to such appropriation; and

(b) Where there is a single contract of sale or purchase of goods situated at more

places than one, the provisions of clause (a) shall apply as if there were

separate contracts in respect of the goods at each of such places;

2(c) Notwithstanding anything to the contrary contained in this Act or any other

law for the time being in force, two independent sales or purchases shall, for

the purposes of this Act, be deemed to have taken place,

(i) when the goods are transferred from a principal to his selling agent

and from the selling agent to the purchaser, or

(ii) when the goods are transferred from the seller to a buying agent

and from the buying agent to his principal. 2

23. (d) Notwithstanding anything to the contrary contained in this Act or any other

law for the time being in force, two independent sale or purchase shall, for the

purposes of this Act, be deemed to have taken place, when the goods

specified in Schedule II are transferred from a unit of a dealer to another unit

of the same dealer for sale or for consumption or use in / for manufacture of

goods specified in Schedule II in such unit and the dealer holds separate

registration certificate for each of such units. 23. (with effect from

01.08.2009)

(v) "Sale price" means the amount or any other consideration payable to a dealer as

valuable consideration for the sale of any goods less any sum allowed as 3discount

according to ordinary trade practice but inclusive of any sum charged for anything done

by the dealer in respect of the goods at the time of or before delivery thereof other than

the cost of freight or delivery or the cost of installation when such cost is separately

charged.

Explanation - (i) Where goods are sold on hire purchase or any system of payment by

installments, the sale price of such goods shall be exclusive of

insurance charges, interest and hire charges and such other charges

as may be prescribed.

(ii) Where goods are sold by way of transfer of right to use such goods,

the sale price thereof shall be the amount of valuable consideration

received or receivable by the transferor for such transfer ;

(iii) 3/4 Discount at the time of sale as evident from the invoice shall be

excluded from the sale price but any ex post facto grant of discounts

or incentives or rebates or rewards and the like shall not be excluded;

4 (iv) The amount of valuable consideration paid or payable to a dealer for

sale of drugs and medicines specified in entry 10 of part III of

Schedule II shall be the maximum retail price printed on the package

containing the drugs and medicines, for the purposes of levy of tax

under section 9; 4

(w) " Tax "means the tax payable under this Act.

(x) 2“Taxable turnover" in relation to a dealer for any period means that part of dealer's

turnover which remains, after deducting therefrom :-

(1 )The sale price of goods declared tax free under Section 16;

(2) The sale price of goods which are in the nature of tax paid goods in the hands of

such dealer;

(3) The amount collected by way of tax under Section 9 or

the amount arrived at by applying the following formula :

rate of tax X aggregate of sale prices

100 + rate of tax

Provided that no deductions on the basis of the above formula shall be

made if the amount by way of tax collected by a registered dealer, in accordance with the

provisions of this Act, has been otherwise deducted from the aggregate of sale prices.

Explanation – Where the turnover of a dealer is taxable at different rates, the aforesaid

formula shall be applied separately in respect of such part of the turnover liable to a different

rate of tax under section 9 ; 2

(y) 2 “Tax paid goods” in relation to goods specified in part III of schedule II on which tax is

payable under section 9 means any such goods which have been purchased by a dealer

from a registered dealer inside the State of Madhya Pradesh within the meaning of section 4

of the central Sales Tax Act, 1956 (No. 74 of 1956). 2(upto 31-07-2009)

20 (y) “Tax paid goods” in relation to goods specified in Part III of Schedule II and the

goods notified under section 9-A, on which tax is payable under section 9, means

any such goods which have been purchased by a dealer from a registered dealer

inside the State of Madhya Pradesh within the meaning of section 4 of the Central

Sales Tax Act, 1956 (No. 74 of 1956). 20 (from 01-08-2009)

(z) ‘Turnover’ in relation to any period means the aggregate of the amount of sale prices

received and receivable by a dealer in respect of any sale or supply or distribution of goods

made during that period, whether or not the whole or any portion of such turnover is liable to

tax but after deducting the amount, if any, refunded by the dealer to a purchaser, in respect

of any goods purchased and returned by the purchaser within six months from the date of

such sale:

Provided that -

(i) in the case of sale by bonafide agriculturist as defined in clause (e) of subsection

(1) of Section 2 of the Madhya Pradesh Land Revenue Code, 1959

(No.20 of 1959), of ghee produced by himself; or

(ii) in case of sale by a person of agricultural or horticultural produce grown by

himself or grown on any land in which he has an interest whether as owner,

usufructuary mortgagee, tenant or otherwise, when such produce is sold in the

form in which it was produced, without being subjected to any physical, chemical

or other process for being made fit for consumption save mere dehusking,

cleaning, grading or sorting, the amount of consideration relating to such sales,

shall be excluded from his turnover;

(a-1) " VAT" (Value Added Tax) means tax on sale or purchase of goods payable under

this Act.

(b-1) ‘Year’ means the twelve months ending on the 31st day of March.