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Constitutes Of Sales Tax Act In India

1. A sale or purchase of goods is said to take place when the transfer of property in the existing goods or future goods takes place for consideration of money.
2. The goods have been divided into different categories and different rates of sales tax are charged for different categories of goods.
3. In most of the cases related to the sales tax, the tax on the sale or purchase of goods is at single point.
4. Under the provisions of some state laws the assesses are divided into several categories such as manufacturer, dealer, selling agent etc. and such as assess is required to obtain a registration certificate to that effect. The sales tax or the purchase tax is levied on that assessee on the basis of his category such as dealer, manufacturer etc. on production of certain forms or certificates (and differential rates of sales tax are levied).
5. Generally , a quarter return of sales or purchases is insisted upon and the assessee is required to furnish the return in the prescribed form.
6. At the time of assessment, the assessee has to furnish all the documentary evidence and satisfy the concerned sales tax / commercial tax officer.
7. The sales tax laws of the states prescribe the procedure to be followed in case an assessee prefers to make an appeal.
8. Every dealer should apply for registration and obtain a registration certificate to that effect. The registration certificate number should be quoted in all the bill / cash memos.
9. A supply, by way of or, as part of any service or, in any other manner whatsoever of goods, of goods, being food or any other article for human consumption or any drink (whether intoxicating or not), where such supply or service if for cash, deferred payment or other valuable consideration.

In order to constitute a sale, it is necessary that the following conditions must exist:

1. The parties are competent to contract.
2. There is an agreement between the parties for the purpose of transferring title to the goods.
3. It must be supported by money consideration.
4. As a result of the transaction, the property must actually pass in the goods.

• Materials.
• Articles.
• Commodities.
• All kinds of movable property. (Movable property is property, which is capable of being lifted, carried, drawn, turned or conveyed or in any way made to change place or position. The nature of movable property is such that its identity is not lost if it is moved from one location to another.).
• Standing crops, grass, trees, timber and other things attached to the earth, if it is agreed under the contract of sale that they will be severed or cut off the land where they are so attached; or, if the crop or timber is identified; the contract is unconditional; or the crop or timber is in a deliverable state.
• Electric meters, which are the equipments, used for measuring electricity for the purpose of selling it to consumers, are goods.
• It is important to note that only for the purposes of the CST Act, the following are not deemed to be �goods� and, therefore, are not assessable to CST.
• Newspapers.
  (Exception: sale of old or waste newspapers is taxable & a dealer may buy raw material for newspapers at a concessional rate on submission of Form C)
• Actionable claims.
• Stocks shares and securities.