General Information >> Important Definition

Business :

“Business” includes –

(1) 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 profit and whether or not any profit
accrues from such trade, commerce, manufacture, adventure or concern and

(2) Any transaction of buying, selling or supplying plant, machinery, raw material,
processing materials, empties, consumable stores, waste products, or such other goods, or
waste or scrap of any of them which is ancillary incidental to or resulting from such trade,
commerce, manufacture, adventure or concern;

Dealer:

“Dealer” means any person who buys or sells goods in connection with his business and
includes -

(a) The Central Government,

(b) A State Government,

(c) Any local authority,

(d) Any society, club or other association of persons which buys goods from or sells goods
to its members or to other persons,

(e) Any person who transfers, otherwise than in pursuance of a contract, property in any
goods for cash, deferred payment or other valuable consideration,

(f) Any person who transfers property in goods (whether as goods or in some other form)
involved in the execution of a works contract.

(g) Any person who delivers goods on hire purchase or any system of payment by
installments,

(h) Any person who transfers the right to use any goods for nay purpose (whether or not for
a specified period) for cash, deferred payment or other valuable consideration,

(i) Any unincorporated association or body of persons which supplies goods to a member
there of for cash deferred payment or other valuable consideration,

(j) Any person who suppliers, by way of or as part of any service or in any other manner
whatsoever, 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).
 (k) A casual dealer.

Exception I.

An agriculturist who sells exclusively agricultural produce grown on land cultivated by him
personally, shall not be deemed to be a dealer within the meaning of this clause :

Exception II.

A charitable, religious or educational institution, carrying on the activity of manufacturing,

buying, selling or supplying goods, in performance of its functions for achieving its avowed
objects, shall not be deemed to be a dealer within the meaning of this clause:

Exception III.

An individual who sells exclusively any fish or any sea-food caught by him personally or by
any member of his family on account of or on behalf of such individual, shall not be deemed to
be a dealer within the meaning of this clause:

Goods :

“Goods” means all kinds of movable property (not buying news-papers or actionable
claims or stocks, shares or securities) and all materials, articles and commodities, including
standing timber and things attached to or forming part of the land, which are agreed to be
severed before sale or under the contract of sale.

Manufacture :

“Manufacture” with all its grammatical variations and cognate expressions, means
producing, making extracting, collecting, altering, ornamenting, finishing or otherwise
processing, treating or adapting any goods; but does not include such manufactures or
manufacturing processes as may be prescribed.

Sale :

“Sale” means a sale of goods made within the State for cash or deferred payment or other
valuable consideration and includes,

(a) Any supply by a society or club or an association to its members on payments of a price
or of fees or subscription,

(b) Transfer, otherwise than in pursuance of a contract, of property in any goods for cash,
deferred payment or other valuable consideration,

(c) Transfer of property in goods 9whether as goods or in some other form) involved in
execution of a works contract,

(d) Delivery of goods on hire purchase or any system of payment by installments,

 (e) Supply of goods by any unincorporated association or body of persons to a member
thereof for cash, deferred payment or other valuable consideration,

(f) 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, hypothecation, charge or pledge and the
words ‘sell’, ‘buy’ and ‘purchase’ with all their grammatical variations and cognate xpressions
shall be construed accordingly.

Sale Price:

“Sale price” means the amount of valuable consideration paid or payable to a dealer for
any sale made including 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 insurance for transit or of
installation when such cost is separately charged and includes,

(a) In relation to

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

(ii) The transfer of the right to use any goods for any purpose (whether or not for a
specified period),

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

member thereof,

(iv) The 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), the amount of cash, deferred payment or other valuable consideration
paid or payable therefore:

(b) In relation to the transfer of property in goods (whether as goods or in some other form
involved in the execution of a works contract, such amount as is arrived at by deducting from
the amount of valuable consideration paid or payable to a person for the execution of such
works contract, the amount representing labor charges for such execution.

(c) 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.

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