Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / abhivirthi tax and industrial
Sale means any transfer of property in goods by one person to another for cash or deferred payment or for any other valuable consideration. One person cannot make a sale to himself and hence there must two persons for the purpose of sale and then only one person can make sale to another person. The selling person must give goods and receive payment by way of cash or deferred payment or any other valuable consideration against the goods. Any other valuable consideration means cash, cheque, promissory note or any other mode of payment equivalent to money. One person sells goods and receives payment and this transaction is called Sale.
In simple for sale there must be two parties one as seller or supplier and another as purchaser or customer and there must be supply and transfer of goods (other than newspaper) by the seller to buyer either by way of sale or resale for valuable consideration i.e. price agreed by parties for the goods sold or purchased. This is called normal sale or direct sale. The State Government has power to impose tax on sale of goods within the state. Under the State Sales Tax Laws, the Sales Tax was applicable only on the sales covered under the sale of goods Act (Normal sale) as shown above.
In works contract there is an agreement between contractor and contractee or client and there is a project development either by construction or repair etc through supply of goods and services and the transfer of goods on the theory of accretion and the price agreed by both parties for the execution of Works contract. The contractor receives money or any valuable consideration in one lump sum or in instalments and delivers the project later after completion and this kind of sale is called Works Contract or Deemed Sale and not normal sale.
Reply From:
ABHIVIRTHI Tax and Industrial Consultancy
R.R.JAGADEESAN
VAT PRACTITIONER AND INDUSTRIAL CONSULTANT
H-63, Palaami Enclave, New Natham Road,
Madurai-625014.
abhivirthi.blogspot.com
Cell: 9994990599
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
What is the SEZ formalties in cement Industry?
What is turnover limit for Auditing of Service Tax, VAT, Income Tax, Provident Fund, P. Tax and WCT? Please mail me at gautam_ch2 @ rediffmail.com or call me at 09831707812.
how to modify 12% to 13.5% in tallyerp9 release 1.6
How to calculate entry tax on kraft papers format in excel under Assam Entry tax rules?
how to caluclate the mumbai tax with example? what is mean by credit and debit ?
What is the difference between Indian and us taxation
What is FBT & Service Tax Remittances?
WHAT IS EXECUTION OF WORKS CONTRACT ?
what is the procedure for Excisable goods transfer from Head office to branch and vice versa (the branch is located in the same state) also if the branch is located in other states. How will it affect the VAT returns
why VAT not charged in deemed sales bill.
we are the manufacture of leather shoes, we send the shoe sample to some parties , can it we shown in RG1 Register , if shown then , where ? if not then why ?
a x company deduct tds against our bills so how i entry this type of transaction in talyy 9.0 ?
when charges PURCHASE @ 12 % TAX RATE ?
if i paid interest on tds for ex:- tds deducted on rent for the month of april, may, june rs. 20000 each for month and tds paid on 7th july then i have to pay interest @ 1.5% for rs. 1200 , 900 , 600 respectively , so i wanted to know what is the entry for rising of this interest in accounting software other than tally
We have a constructed a goverment approved textile park in year 2007. will we have to pay Service Tax on that Construction Service?
