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2011 (7) TMI 55 - HC - VAT and Sales TaxSale price - handling charges or service charges for registration of motor cycle - valuation - Held that: - The transfer of property in the goods in pursuance of the sale contract takes place against the payment of the price of the goods. Delivery of the goods is effected by the seller to the buyer. The obligation under the law to obtain registration of the motor vehicle is cast upon the buyer. The service of facilitating the registration of the vehicle which is rendered by the seller assessee is to the buyer and in rendering that service, the seller acts as an agent of the buyer. The handling charges which are recovered by the Respondent cannot therefore be regarded as forming part of the consideration paid or payable to the Respondent for the sale. Those charges cannot fall within the extended meaning of the expression “sale price”, since they do not constitute a sum charged for anything done by the seller in respect of the goods at the time or before the delivery thereof.
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