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Report No. 61

Recommendation to Amend The Act

2.23. Recommendation.-

We, therefore, recommend1 that if it is decided as a matter of policy to tax consignments, then the definition of "sale"2-3 in the Central. Sales Tax Act should, after carrying out the requisite constitutional amendments, be amended somewhat on these lines4:-

"(g) 'sale' means any transfer of property in goods by one person to another for cash or deferred payment or for any other valuable considerations5 and includes

(i) a transfer of goods on hire-purchase6 or other system of payment by instalments, and

(ii) a consignment of goods occasioning their movement from one place to another, where such consignment is by a dealer to any other place of his business or to his agent or principal, but does not include a mortgage or hypothecation or a charge or pledge of goods; and its grammatical variations and cognate expressions shall be construed accordingly."

1. Amendments needed in the Constitution to be considered separately see para. 2.25, et seq, infra.

2. Section 2(g), Central Sales Tax Act.

3. This is not intended to be a precise draft.

4. Consequential amendments, if necessary, in the other provisions of the Central Sales Tax Act, should be separately considered.

5. As to amendment of the words referring to "valuable consideration", there is a separate recommendation, see Chapter 8.

6. Portion relating to hire-purchase is subject to the discussion in the relevant chapter.

Certain Problems connected with Powers of the States to Levy a Tax on the Sale of Goods and with the Central Sales Tax Act, 1956 Back

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