2. Definitions
In this Act, unless there is anything repugnant in the subject or context, -
(a) "Appellate Board" means the Appellate Board constituted under section 4;
(b) "Appellate Authority " means an Authority appointed under section 3 A.2
(c)``Assistant Commissioner’’ means an Assistant Commissioner of Commercial Tax appointed under Section 3 and includes an Additional Assistant Commissioner of Commercial Tax;
(d) “Business “ includes, -
(i) any trade, commerce, 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 irrespective of the volume, frequency, continuity or regularity of such trade, commerce,
manufacture, adventure or concern; and
(ii) any transaction of sale or purchase of goods in connection with or
incidental or ancillary to the trade, commerce, manufacture, adventure or
concern referred to in clause (i), that is to say –
(a) goods whether or not they are in their original form
or in the form of second hand goods, unserviceable
goods, obsolete or discarded goods, mere scrap or
waste material; and
(b) goods which are obtained as waste products or byproducts
in the course of manufacture or
processing of other goods or mining or generation
of or distribution of electrical energy or any other
form or power;
3 /4 (e) "Canteen stores" means the goods included in part IV of Schedule II, but
excluding such goods as the State Government may by *notification specify;3 /4
(f) " Commercial Tax Office " means an office of any Officer appointed under
section 3 of this Act.
(g) “Commercial Tax Officer” means a Commercial Tax Officer appointed under
Section 3 and includes an Additional Commercial Tax Officer;
(h)“Commissioner” means the Commissioner of Commercial Tax appointed under
Section 3;
23. (ha) "Cooked food" means meal prepared and served by hotels, restaurants and the
like, including prepared tea and prepared coffee: 23.
(i) “Dealer” means any person, who carries on the business of buying, selling, supplying
or distributing goods, directly or otherwise, whether for cash, or for deferred payment
or for commission, remuneration or other valuable consideration and includes -
(i) a local authority, a company, an undivided Hindu family or any society
(including a co-operative society), club, firm or association which carries on
such business;
(ii) a society (including a co-operative society), club, firm or association which
buys goods from, or sells, supplies or distributes goods to its members;
(iii) a commission agent, broker, a del-credere agent, an auctioneer or any
other mercantile agent, by whatever name called, who carries on the business of
buying, selling, supplying or distributing goods on behalf of the principal;
(iv) any person who transfers the right to use any goods including leasing thereof
for any purpose, (whether or not for a specified period) in the course of business
to any other person;
Explanation I - Every person who acts as an agent of a non- resident dealer, that
is as an agent on behalf of a dealer residing outside the State and buys, sells,
supplies or distributes goods in the State or acts on behalf of such dealer as -
(i) a mercantile agent as defined in the Sale of Goods Act, 1930 (III of 1930); or
(ii) an agent for handling goods or documents of title relating to goods; or
(iii) an agent for the collection or the payment of the sale price of goods or
as a guarantor for such collection or payment, and every local branch of a firm or
company situated outside the State,
shall be deemed to be a dealer for the purpose of this Act.
Explanation II - The Central or a State Government or any of their departments or
offices which, whether or not in the course of business, buy, sell, supply or
distribute goods, directly or otherwise, for cash or for deferred payment, or for
commission, remuneration or for other valuable consideration, shall be deemed to
be a dealer for the purpose of this Act.
Explanation III - Any non-trading, commercial or financial establishment including a
bank, an insurance company, a transport company and the like which whether or
not in the course of business buys, sells, supplies or distributes goods, directly or
otherwise, for cash or for deferred payment, commission, remuneration or for
other valuable consideration, shall be deemed to be a dealer for the purposes of
this Act:
(j) The expression “declared goods” shall have the meaning assigned to it in the
Central Sales Tax Act, 1956 (No.74 of 1956);
(k) “Deputy Commissioner” means a Deputy Commissioner of Commercial Tax
appointed under Section 3 and includes an Additional Deputy Commissioner
of Commercial Tax ;
(l) “Document” means title deeds, writings or inscriptions and includes "electronic record"
and "electronic form" as defined in the Information Technology Act, 2000 (No.21 of
2000) and the like that furnishes evidence;
(m) “Goods” means all kinds of movable property including computer software but
excluding actionable claims, newspapers, stocks, shares, securities or Government
stamps and includes all materials, articles and commodities, whether or not to be
used in the construction, fitting out, improvement or repair of movable or immovable
property, and also includes all growing crops, grass, trees, plants and things attached
to, or forming part of the land which are agreed to be severed before the sale or
under the contract of sale;
(n) "Import" means the bringing or causing to be brought of goods in to the State of
Madhya Pradesh from any place outside the State;
(o) 2'' input tax'' means an amount paid or payable by way of tax under section 9 by a
registered dealer in respect of the purchase of any goods specified in Schedule
II , to a selling registered dealer and who is liable to pay tax under the said
section on the sale of such goods; 2
(p) “Manufacture” includes any activity that brings out a change in an article or articles
as a result of some process, treatment, labour and results in transformations into a
new and different article so understood in commercial parlance having a distinct
name, character and use, but does not include such activity of manufacture as may
be *notified*;.
(q) “Place of business” means any place where a dealer purchases or sells any goods
or stores goods or keeps documents or accounts of his purchases or sales or both
and also includes -
(i) the place of business of an agent where a dealer carries on business through
an agent;
(ii) any place or building whether any business is carried on therein or not, in
which the person carrying on the business, keeps any of his books of
accounts, documents, stocks or other things, relating to his business;
(iii) any vehicle or vessel or any other carrier wherein goods are stored or used
for transporting goods;
(r) "prescribed" means prescribed by rules made under this Act;
(s) “Purchase price” shall comprise of -
(i) the amount payable by a dealer as valuable consideration for the purchase of
goods ‘ simplicitor ’;
Provided that where goods are purchased together with the packing
material or container, then notwithstanding anything contained in this Act, the
purchase price of such goods shall be inclusive of the price or cost or value of such
packing material or container, whether such price or cost or value is paid separately
or not as if such packing material or container were the goods purchased;
(ii) transport costs, if any;
(iii) trade commission, if any, by whatever name called;
(iv) forwarding and handling charges, if any;
(v) insurance charges, if any;
(vi) local taxes, if any;
(vii) excise duty, if any, leviable under the Central Excise Act, 1944 (No.1 of
1944);
(viii) cost of packing, if any; and
(ix) any other charges or costs other than those specified above, if incurred or
paid in respect of goods so purchased;
Explanation -For the purpose of this clause “transport cost” includes such
expenses as are incurred by the dealer on transportation of goods after taking delivery
from the seller;
(t) “Registered dealer” means a dealer registered under this Act;
(u) “Sale” with all its grammatical variations and cognate expressions means any
transfer of property in goods for cash or deferred payment or for other valuable
consideration and includes -
(i) a transfer, otherwise than in pursuance of a contract, of property in any goods
for cash, deferred payment or other valuable consideration;
(ii) a transfer of property in goods whether as goods or in some other form,
involved in the execution of works contract;
(iii) a delivery of goods on hire purchase or any system of payment by
instalments ;
(iv) a supply of goods by any unincorporated association or body of persons to a
member thereof for cash, deferred payment or other valuable consideration;
(v) 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;
(vi) a transfer of the right to use any goods including leasing thereof for any
purpose (whether or not for a specified period) for cash, deferred payment or other
valuable consideration,
and such transfer, delivery or supply of any goods shall be deemed to be a sale of those
goods by the person making the transfer, delivery or supply and purchase of those
goods by the person to whom such transfer, delivery or supply is made, but does not
include a mortgage, hypothecation, charge or pledge;
Explanation - (a) Notwithstanding anything contained in the Sale of Goods Act, 1930 (III
of 1930), where a sale or purchase of goods takes place in pursuance of a
contract of sale, such sale or purchase shall be deemed for the purposes of
this Act to have taken place in the State of Madhya Pradesh irrespective of
the place where the contract of sale or purchase might have been made, if
the goods are within the State -
(i) in the case of specific or ascertained goods, at the time the contract
of sale or purchase is made; and
(ii) in the case of unascertained or future goods, at the time of their
appropriation to the contract of sale or purchase by the seller or by the
purchaser, whether the assent of the other party is prior or subsequent
to such appropriation; and
(b) Where there is a single contract of sale or purchase of goods situated at more
places than one, the provisions of clause (a) shall apply as if there were
separate contracts in respect of the goods at each of such places;
2(c) Notwithstanding anything to the contrary contained in this Act or any other
law for the time being in force, two independent sales or purchases shall, for
the purposes of this Act, be deemed to have taken place,
(i) when the goods are transferred from a principal to his selling agent
and from the selling agent to the purchaser, or
(ii) when the goods are transferred from the seller to a buying agent
and from the buying agent to his principal. 2
23. (d) Notwithstanding anything to the contrary contained in this Act or any other
law for the time being in force, two independent sale or purchase shall, for the
purposes of this Act, be deemed to have taken place, when the goods
specified in Schedule II are transferred from a unit of a dealer to another unit
of the same dealer for sale or for consumption or use in / for manufacture of
goods specified in Schedule II in such unit and the dealer holds separate
registration certificate for each of such units. 23. (with effect from
01.08.2009)
(v) "Sale price" means the amount or any other consideration payable to a dealer as
valuable consideration for the sale of any goods less any sum allowed as 3discount
according to ordinary trade practice but inclusive of 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 freight or delivery or the cost of installation when such cost is separately
charged.
Explanation - (i) Where goods are sold on hire purchase or any system of payment by
installments, the sale price of such goods shall be exclusive of
insurance charges, interest and hire charges and such other charges
as may be prescribed.
(ii) Where goods are sold by way of transfer of right to use such goods,
the sale price thereof shall be the amount of valuable consideration
received or receivable by the transferor for such transfer ;
(iii) 3/4 Discount at the time of sale as evident from the invoice shall be
excluded from the sale price but any ex post facto grant of discounts
or incentives or rebates or rewards and the like shall not be excluded;
4 (iv) The amount of valuable consideration paid or payable to a dealer for
sale of drugs and medicines specified in entry 10 of part III of
Schedule II shall be the maximum retail price printed on the package
containing the drugs and medicines, for the purposes of levy of tax
under section 9; 4
(w) " Tax "means the tax payable under this Act.
(x) 2“Taxable turnover" in relation to a dealer for any period means that part of dealer's
turnover which remains, after deducting therefrom :-
(1 )The sale price of goods declared tax free under Section 16;
(2) The sale price of goods which are in the nature of tax paid goods in the hands of
such dealer;
(3) The amount collected by way of tax under Section 9 or
the amount arrived at by applying the following formula :
rate of tax X aggregate of sale prices
100 + rate of tax
Provided that no deductions on the basis of the above formula shall be
made if the amount by way of tax collected by a registered dealer, in accordance with the
provisions of this Act, has been otherwise deducted from the aggregate of sale prices.
Explanation – Where the turnover of a dealer is taxable at different rates, the aforesaid
formula shall be applied separately in respect of such part of the turnover liable to a different
rate of tax under section 9 ; 2
(y) 2 “Tax paid goods” in relation to goods specified in part III of schedule II on which tax is
payable under section 9 means any such goods which have been purchased by a dealer
from a registered dealer inside the State of Madhya Pradesh within the meaning of section 4
of the central Sales Tax Act, 1956 (No. 74 of 1956). 2(upto 31-07-2009)
20 (y) “Tax paid goods” in relation to goods specified in Part III of Schedule II and the
goods notified under section 9-A, on which tax is payable under section 9, means
any such goods which have been purchased by a dealer from a registered dealer
inside the State of Madhya Pradesh within the meaning of section 4 of the Central
Sales Tax Act, 1956 (No. 74 of 1956). 20 (from 01-08-2009)
(z) ‘Turnover’ in relation to any period means the aggregate of the amount of sale prices
received and receivable by a dealer in respect of any sale or supply or distribution of goods
made during that period, whether or not the whole or any portion of such turnover is liable to
tax but after deducting the amount, if any, refunded by the dealer to a purchaser, in respect
of any goods purchased and returned by the purchaser within six months from the date of
such sale:
Provided that -
(i) in the case of sale by bonafide agriculturist as defined in clause (e) of subsection
(1) of Section 2 of the Madhya Pradesh Land Revenue Code, 1959
(No.20 of 1959), of ghee produced by himself; or
(ii) in case of sale by a person of agricultural or horticultural produce grown by
himself or grown on any land in which he has an interest whether as owner,
usufructuary mortgagee, tenant or otherwise, when such produce is sold in the
form in which it was produced, without being subjected to any physical, chemical
or other process for being made fit for consumption save mere dehusking,
cleaning, grading or sorting, the amount of consideration relating to such sales,
shall be excluded from his turnover;
(a-1) " VAT" (Value Added Tax) means tax on sale or purchase of goods payable under
this Act.
(b-1) ‘Year’ means the twelve months ending on the 31st day of March.
