What is Considered as Business Under Central Sales Tax Act

As per the Central Sales Tax Act, 1956 “Business” means it includes any trade, commerce or 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 any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern.

From the above it is clear that even though your motive is not to earn any profit from that activity is will be considered as business. Even if you are doing any charity work but it includes any trade, commerce or manufacture, or any adventure then it will be treated as business for Central Sales Tax.

What is Considered as Place of Business Under Central Sales Act

As per Central sales tax, 1956 “Place of business “includes –

  1. In any case where a dealer carries on business through an agent by [whatever name called], the place of business of such agent
  2. a warehouse, goodown or other place where a dealer stores his goods
  3. a place where a dealer keeps his books of account

From the above definition it is very clear that even your agent place will be considered as business place for you and in case you’re accounting work is done at some other place than that place will also considered as place on business main implication of this provision is that in case of any search by sales tax authority at your registered place of business and dealer tells the authority that he maintain the books of accounts at some other premises then they will considered that place as you place of business and they will be authorized to conduct the search of that place.

What is Considered as Goods Under Central Sales Tax Act

As per Central sales tax “goods” includes all materials, articles, commodities and all other kinds of movable property, but does not include news papers, actionable claims, stocks, shares and securities.

Meaning of Dealer Under Central Sales Tax Act

As per Central sales tax Act, 1956 Dealer means any person who, carries on [whether regularly or otherwise] the business of buying, selling, supplying or distributing goods, directly or indirectly, for cash, or for deferred payment, or for commission, remuneration or other valuable consideration, and includes –

A local authority, a body corporate, a company, any cooperative society or other society, club, firm, Hindu undivided family or other association of persons which carries on such business.

A factor, broker, commission agent, del credere agent, or any other mercantile agent, by whatever name called, and whether of the same description as herein before mentioned or not, who carries on the business of buying, selling, supplying or distributing goods belonging to any principal whether disclosed or not.

An auctioneer who carries on the business of selling or auctioning 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.

What is Considered as Sales Under Central Sales Act

As per Central sales tax Act, 1956, Sales Means there should be transfer of property .i.e change of ownership from one person to another person and that transfer is for some valuable consideration means if you are transferring something then you must get something in return then only it will considered as sales.

“sale”, with its grammatical variations and cognates expression, means any transfer of property in goods by one person to another for cash or deferred payment or for any other valuable consideration, and includes,

  1. a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration
  2. a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract
  3. a delivery of goods on hire-purchase or any system of payment by installments
  4. a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration
  5. a supply of goods by any unincorporated association or body of persons to a member thereof for cash deferred payment or other valuable consideration
  6. 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, but does not include a mortgage or hypothecation of or a charge or pledge on goods