| Definitions |
| (1) In this Act, unless the context otherwise requires: - 1[(a)'Appellate Deputy Commissioner' means any person appointed to be an Appellate Deputy Commissioner of Commercial Taxes under Section 4; (aa)] 'Appellate Tribunal' means the Tribunal appointed under Section 3; 1.Inserted by Act 29 of 1981 w.e.f.25.8.1981 relettering clause (a) as clause (aa). 1A(aaa) "Additional Commissioner" means any person appointed to be an Additional Commissioner of Commercial Taxes under Section 4. 1A. Inserted by Act No. 27 of 1996 as amended by Act No.8 of 1997 w.e.f.19.11.1991 (b) 'Assessing Authority' means any person authorized by the State Government or by any other authority empowered by them in this behalf, to make any assessment 2(in such area or areas)2-A (or the whole)2(of the State of Andhra Pradesh) under this Act; 2. Inserted by Act No. 18 of 1985 w.e.f.1.7.1985 2-A. Substituted by Act No. 19 of 1986 w.e.f.1.8.1986 3((bb) "Assistant Commissioner" means any person appointed to be an Assistant Commissioner of Commercial Taxes under Section 4;) 3. Inserted by Act XX of 1961 w.e.f.8.6.1961 4(bbb) 'Business' includes,- (i) any trade, commerce or manufacturing 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 or undertaken with a motive gain or profit and whether or not any gain or profit accrues therefrom; and (ii) any transaction in connection with or incidental or ancillary to such trade, commerce, manufacture, adventure or concern;and (iii)any transaction in connection with or incidental or ancillary to the commencement or closure of such trade, commerce, manufacture, adventure or concern. Explanation : For the purpose of this clause ,- (i) the activities of rising of manmade forests or rearing of seedlings or plants shall be deemed to be business; (ii) Any transaction of sale or purchase of capital assets pertaining to such trade, commerce, manufacture, adventure or concern shall be deemed to be business and the expression "capital assets" shall have the same meaning as assigned to it in the Income Tax Act 1961. 4.Inserted by Act No.7 of 1996 w.e.f .1.4.1966. Substituted by Act No. 19 of 2000 w.e.f.1.4.2000. The earlier section read as under: ((bbb)'Business' Includes:- (i) 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 or undertaken with a motive to make gain or profit and whether or not any gain or profit accrues therefrom; and (ii) any transaction in connection with or incidental or ancillary to,such trade,commerce,manufacture,adventure of concern;) (c) 'Casual Trader' means a person who has, whether as principal, agent, or in any other capacity, occasional transactions of a business involving the buying, selling, supplying or distributing of goods in the State whether for cash, or for deferred payment, or for commission, remuneration, or other valuable consideration; |
| See: Rule14 |
| (d) 'Commercial Tax officer' means any person appointed to be a Commercial Tax Officer under Section 4; 1((dd)'Commissioner' means any person appointed to be Commissioner of Commercial Taxes under Section 4;) 1.Inserted by Act 18 of 1985 w.e.f.1.7.1985 (e)'Dealer' means any person who carries on the business of buying, selling, supplying or distributing goods 2(or delivering goods on hire purchase or on any system of payment by installments, or carries on or executes any works contract involving supply or use of material) directly or otherwise, whether for cash, or for deferred payment, or for commission, remuneration or other valuable consideration, and includes- 2.Inserted by Act 18 of 1985 w.e.f.1.7.1985 (i)3(....) local authority, a company, a Hindu undivided family or any society (including a co-operative society), club, firm or association which carries on such business; 3.The words 'the Central Government, a State Govt;' were deleted by Act 18 of 1985 w.e.f.1.7.1985 (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 casual trader, as herein before defined; 4((iii-a)any person, who may, in the course of business of running a restaurant or an eating house or a hotel (by whatever name called), supply by way 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);) 4.Inserted by Act 18 of 1985 w.e.f.1.7.1985. 5((iii-b) any person, who may transfer the right to the use of any goods for any purpose whatsoever (whether or not for a specified period) in the course of business to any other person;) 5.Inserted by Act 18 of 1985 w.e.f.1.7.1985. (iv) a commission agent, a broker, a delcredere 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 any 6(principal or principals); 6.For the word 'principal' these words were substituted by Act 5 of 1968. 7(Explanation I): Every person who acts as an 'agent of a non-resident dealer ', that is, 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 Indian Sale of Goods Act, 1930 (Central Act III of 1930); or (ii) an agent for the 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; 7(Explanation II: Where a grower of agricultural or horticultural produce sells such produce grown by himself on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, in a form different from the one in which it was produced after subjecting it to any physical, chemical or for any process other than mere cleaning, grading or sorting, he shall be deemed to be a dealer for the purposes of this Act;) 7.Inserted by Act 16 of 1963 w.e.f.1.8.1963 after numbering the original Explanation as Explanation I 8(Explanation III : The Central Government or the State Government which, whether or not in the course of business , buys, cells, supplies or distributes goods, directly or otherwise , for cash or for deferred payment or for commission, remuneration or other valuable consideration shall be deemed to be dealer for the purposes of this act) 8.Inserted by Act 18 of 1985 w.e.f.1.7.1985 9(Explanation IV : For the purpose of this clause, each of the following persons and bodies who sells or dispose of any goods including unclaimed or confiscated or unserviceable goods or scrap, surplus, old, obsolete, or discarded material or waste products whether by auction or otherwise, directly or through an agent for cash, or for deferred payment or for any other valuable consideration shall be deemed to be a dealer to the extent of such disposals or sales, namely :- (a) the Port Trust; (b) Municipal Corporation and Municipal Councils, and other local authorities; (c) Railway administration as defined under the Indian Railways Act, 1890; (d) Shipping, transport and construction companies; (e) Air transport companies and air-lines; (f) Transporters, holding permits for transport vehicles granted under the Motor Vehicles Act, 1988 which are used or adopted to be used for hire; (g) The Andhra Pradesh State Road Transport Corporation; (h) Customs Department of the Government of India administering the Customs Act, 1962; (i) Insurance and financial corporation or companies and Banks included in the Second Schedule to the Reserve Bank of India Act, 1934; (j) Advertising agencies; (k) Any other Corporation, company body or authority owned or set up by or subject to administrative control of the Central Government or any State Government.) 9. Inserted by Act No.27 of 1996 w.e.f.1.8.1996. (f) 'Declared goods' means goods declared under Section 14 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) to be Special importance in inter-State trade or commerce; 1((f-1) 'Deputy Commercial Tax Officer ' means any person appointed to be a Deputy Commercial Tax Officer under Section 4;) 1. Inserted by Act 16 of 1963 w.e.f.1.8.1963 (g) 'Deputy Commissioner ' means any person appointed to be a Deputy Commissioner of Commercial Taxes under Section 4;) 1A((gg)'Fair Market Price ' means the price that the goods would ordinarily fetch on sale in the open market on the date of sale of such goods.) 1A. Inserted by Act NO.27 OF 1996 W.E.F.1.8.1996. (h) 'Goods'means all kinds of movable property other than actionable claims, stocks, shares and securities, and includes all materials, articles and commodities 2(including the goods (as goods or in some other form), involved in the execution of a works contract or those goods used or to be used in the construction, fitting out, improvement or repair of movable or immovable property) and also includes all growing crops, grass and things attached to or forming part of the land which are agreed to be served before sale or under the contract of sale 3(and also includes motor spirit; 2. Inserted by Act 18 of 1985 w.e.f.1.7.1985 Explanation:- Motor spirit means any substance which by itself or in admixture with other substances is ordinarily used directly or indirectly, to provide reasonably efficient fuel for automotive or stationary internal combustion engines, and includes petrol diesel oil, and other internal combustion oils, but does not include power alcohol, kerosene, furnace oil, coal or charcoal; 3. Inserted by Act 5 of 1968 w.e.f.1.7.1968 4((h-1) 'Goods Vehicle' means any motor vehicle constructed or adapted for the carriage of goods, or any other motor vehicle not so constructed or adapted when used for the carriage of goods solely or in addition to passengers;) 4. Inserted by Act 29 of 1974 w.e.f.15.5.1974 5((h-2) 'Joint Commissioner' means any person appointed to be a Joint Commissioner Commercial Taxes under Section 4;) 5. Inserted by Act29 of 1981 w.e.f.25.8.1981 (i) 'Licence ' means a license granted or renewed under this Act; 6((i-1) 'Miller ' means a person who engages himself in milling operations in any rice mill, oil mill, dhall mill, saw mill, ginning mill or a decorating mill and includes a person who, or the authority which has the ultimate control over the affairs of the rice mill, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent. Explanation:- For the purposes of this clause, the word 'mill' means the plant and machinery with which, and the premises including the precincts thereof, in which or any part of which, the milling, ginning or decorticating operations, as the case may be carried on) 6. Substituted by Act 4 of 1989 w.e.f.21.1.1989. (j) 'Notification ' means a notification published in the Andhra Pradesh Gazette; 7((j-1) 'Petrol ' means dangerous petroleum as defined in the Petroleum Act, 1934;) 7. Inserted by Act 5 of 1968 w.e.f.1.7.1968 8[(k) " Place of business " means any place where a dealer purchase or sells goods and includes-- |
| See Rule 28(7) |
| i) any warehouse, godown or other place where a dealer stores or process his goods; (ii) any place where a dealer produces or manufactures goods; (iii)any place where a dealer keeps his books of accounts; (iv) in case where a dealer carries on business through an agent (by whatever name called) the place of business of such agent; (kk)"Principal place of business " means -- |
| See: Rule28(21A) |
| (i) in the case of manufacturing or processing units the place of manufacture or processing; (ii) in the case of manufacturing or processing units with more than one factory, the place where the main factory or processing unit is located; (iii) in the case of trading units the place from which the dealer carries on his main business.] 8. Inserted by Act NO.27 OF 1996 W.E.F.1.8.1996. The earlier sub-section read as under :- "(k) "Place of business" means any place where a dealer purchases or sells any goods or stores goods or keeps accounts of his purchases or sales or both." (I) 'Prescribed' means prescribed by rules made under this Act; (m) 'Registered dealer' means a dealer registered under this Act; 9[(mm) "Retail Dealer" means any dealer whose total turnover in a year does not exceed rupees ten lakhs and whose total turnover comprises sales of goods to persons, who purchase the goods for their own use but not for resale, and to other dealers only for effecting accommodation sales in the relevant assessment year.] 9. Clause (mm) was Inserted by A.P.Act No.22 of 1995 w.e.f.1.4.95 and substituted by Act No. 27 of 1996 w.e.f.1.4.1995. The earlier clause(mm) read as under:- "Retail Dealer" means any dealer whose total turnover is entirely by way of sale of goods to persons other than dealers in the relevant assessment year and does not exceed rupees ten lakhs;" 9A((mmm) "Accommodation sales" means sale of goods effected by a dealer which are not in stock held by that dealer as on the date of sale, but which are obtained by him any other registered dealer specially to accommodate a particular customer and the sale is effected by the said dealer without making any profit out of that transaction." 9A. Inserted by Act No. 27 of 1996 w.e.f.1.4.1995. (n) 'Sale' with all its grammatical variations and cognate expressions means every transfer of the property in goods 1(whether as such goods or in any other form in pursuance of a contract or otherwise) by one person to another in the course of trade or business , for cash, or for deferred payment, or for any other valuable consideration 2(....)or in the supply or distribution of goods by a society (including a co-operative society), club, firm or association to its members, but does not include a mortgage, hypothecation or pledge of, or a charge on goods. 1. Inserted by Act 18 of1985 w.e.f.1.7.1985. 2. The words 'and includes any transfer of materials for money consideration in the excecution of a works contract provided that the contract for a transfer of such materials can be seperated from the contract for services and the work done although the two contracts are embodied in a single document' were omitted by Act 18 of 1985 w.e.f.1.7.1985. Explanation I :3( A delivery of goods on the hire purchase or any system of payment by installments) shall, notwithstanding the fact the seller retains the title in the goods, as security for payment of price, be deemed to be a Sale. 3. Substituted by Act 18 of 1985 w.e.f.1.7.1985 for the words 'A transfer of goods on the hire purchase or other instalment system of payment'. Explanation II : (a) Notwithstanding anything contained in the Indian Sale of Goods Act, 1930(Central Act III of 1930) a sale or purchase of goods shall be deemed, for the purpose of this Act to have taken place in the State, wherever 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. (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. Explanation III : Notwithstanding anything contained in this Act or in the Indian Sale of Goods Act, 1930 (Central Act III of 1930), two independent sales or purchases shall for the purpose of this Act, be deemed to have taken place. (1) When the goods are transferred from a principal to his selling agent and from the selling agent to his purchaser, or (2) When the goods are transferred from the seller to a buying agent and from the buying agent to his principal, if the agent is found in either of the cases aforesaid.... (i) to have sold the goods at one rate and have passed on the sale proceeds to his principal at another rate; or (ii) to have purchased the goods at one rate and to have passed on the sale proceeds to his principal at another rate; or (iii) not to have accounted to his principal for the entire collections or deductions made by him, in the sales or purchases effected by him on behalf of his principal;or |
| See: Rule 17B |
| (iv) to have acted for a fictitious or non-existent principal; 4(Explanation IV: A transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration shall be deemed to be a sale.) 4. Inserted by Act 18 of 1985 w.e.f.2.2.1983 5(Explanation V: Notwithstanding anything contained in this Act or in the sale of Goods Act, 1930, the sale of goods includes the supply, by way of or as part of any service or in any 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 and such supply of any goods shall be deemed to be a sale of those goods by the person making the supply of those goods to the person to whom such supply is made.) 5. Inserted by Act 18 of 1985 w.e.f.1.7.1985(by virtue of Ordinance 2 of 1985). Also see Section 17 of Act NO. 19 of 1986. 1Explanation VI : Whenever any goods are supplied or used in the execution of a works contract, there shall be deemed to be a transfer of property in such goods, whether or not the value of the goods so supplied or used in the course of execution of such works contract is shown separately and whether or not the value of such goods or material can be separated from the contract for the service and the work done. 1. Inserted by Act 18 of 1985 w.e.f.1.7.1985 2Explanation VII : Notwithstanding anything contained in the Sale of Goods Act, 1930, a sale or purchase of goods shall, for the purposes of this Act be deemed to have taken place where in the course of any scheme whether called as "Lucky Gift Scheme" or by any other name, any goods are transferred by the person who runs such scheme to any other person who is a subscriber to that scheme, provided that all the subscribers to the scheme have agreed to contribute a specific sum periodically or otherwise, towards the cost of any article agreed to be sold or given to the winner of the draw held by the holder of the scheme; and the turnover for the purpose of this explanation shall be (the amount which would have been payable by the subscriber had he won the prize till the end of the series of draw;)] 2. Inserted by Act 18 of 1985 w.e.f.13.9.1985. The bracketed words were substituted by Act No. 19 of 1986 w.e.f.1.8.1986 for the following words: "the amount which has been paid by the subscriber, if such subscriber had not won the price till the end of series of draw;" 2-A(Explanation VIII : Every transfer of property in goods by the Government or the State Government for cash or for deferred payment or for any other valuable consideration, whether or not in the course of business shall be deemed to be a sale for the purpose of this Act.) 2-A. Inserted by Act 19 of 1986 w.e.f.1.8.1986 (o) 'Schedule' means a Schedule appended to this Act; (p) 'State' means the State of Andhra Pradesh; 1((q) 'tax' means a tax on the sale or purchase of goods payable under this Act and includes, - (i) a tax on the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; (ii) a tax on transfer of property in goods (whether as goods or in some other from) involved in the execution of a works contract; (iii) a tax on the delivery of goods on hire purchase or any system of payment by installments; (iv) a tax on the transfer of the right to use any goods for any purpose (Whether or not for a specified period) for cash, deferred payment or other valuable consideration; or (v) a tax on the supply of goods by any un-incorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; (vi) a tax on 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), where such supply or service is for cash, deferred payment or other valuable consideration;) 1.Susbstitued by Act 18 of1985, w.e.f.1.7.1985. The clause as substituted by Ordinance No.2 of 1985 w.e.f.2.2.1985 read as under:- "(q)) "tax means a tax on the sale or purchase of goods payable under this Act and includes a tax on the supply by way of or as part of any service or in any other manner whatsoever, of foods,being food or any other article for human consumption or any drink(whether or not intoxicating) where such supply or service for cash,deferred payment or other valuable consideration;" Prior to 2.2.1983 the definition read thus: "tax" means a tax payable under this Act. (r) 'Total turnover' means the aggregate turnover in all goods of a dealer at all places of business in the State, whether or not the whole or any portion of such turnover is liable to tax; 2. Added by Act 18 of 1985 w.e.f.1.7.1985 (including the turnover of purchases or sales in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India;) 1((s) 'Turnover' means |
| See Rule 5,6&19 |
| (i) the total amount set out in [the bill of sale excluding the amount collected towards the tax or the tax due under the Act whichever is less]; (ii) the total amount of consideration for the sale 2[or purchase of goods excluding tax due under the Act] as may be determined by the assessing authority, if the bill of sale does not set out correctly the amount for which the goods are sold; or (iii) if there is no bill of sale, the total amount charged as the consideration for the sale or purchase of goods by a dealer either directly or through another, on his own account or on account of others, whether such consideration be cash, deferred payment or any other thing of value and shall include,- (a) (the value of any goods) as determined by the assessing authority, The bracketed words were substituted for the words 'the cost of any goods' w.e.f.1.8.1986 (i) to have been used or supplied by the dealer in the course of execution of the works contract; (ii) to have been delivered by the dealer on hire purchase or any other system of payment by installments; 1. Clause (s) was substituted by Act 18 of 1985 w.e.f.1.7.1985. 2. The bracketed words were substituted by Act No.22 of 1995 w.e.f.1.4.1995 for the words "the bill of sale" and "or purchase of goods" respectively. (iii) to have been supplied or distributed by a society including a Co-operative Society, Club, firm or association to its members, where the cost of goods is not separately shown or indicated by the dealer and where the cost of such goods is separately shown or indicated by the dealer , the cost of such goods as shown or indicated; (b) any other sum charged by the dealer for anything done in respect of goods sold at the time of, or before, the delivery of the goods; (c) any other sum charged by the dealer , whatever be the description, name or object thereof; and (d) the aggregate of amounts charged under Section 5-C realisable under Section 5-E. Provided that in the case of a sale by a person whether by himself or though an agent of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest whether as owner, usufructuary mortgage, tenant or otherwise, the amount of consideration relating to such sale shall be excluded from his turnover 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 cleaning, grading or sorting. Explanation : Subject to such conditions and restrictions, if any, as may be prescribed in this behalf, - (i) any cash or other discount on the price allowed in respect of any sale and any amount refunded in respect of articles returned by customers shall not be included in the turnover; (ii) where for accommodating a particular customer, a dealer obtains goods from another dealer and immediately disposes of the same to the said customer the sale in respect of such goods shall be included in the turnover of the latter dealer , but not in that of the former; (iv) where a dealer being a registered trade mark holder or registered trade mark user so arranges that not less than three fourths of his sales of goods with such trade mark in the state are through a related person, the price at which the related person sells such goods in the state shall be deemed to be the consideration recieved by the dealer. Explanation :- For the purpose of this sub-clauase, "related person" means a person who is so associated with the dealer that they have interest, directly or indirectly, in the business of each other and including a holding company, subsidary company, a relative and a distributer of the dealer and any sub-distributer or such distributer. In this sub-clause, holding company and subsidary company and relative have the same meaning as in the Indian Companies Act, 1956 (Central Act 1 of 1956).] Note: Clause (iv) was inserted by Act No.30 of 2001 w.e.f.1.4.2001. 1(t) "works contract" includes any agreement for carrying out for cash or for deferred payment or for any other valuable consideration, the building construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property. 1. Inserted by Act 18 of 1985 w.e.f.1.7.1985. The same was substituted by Act No.22 of 1995 w.e.f.1.4.95. The original clause read as under: (t) 'Works contract' means any agreement for carrying out for cash or for deferred payment or for other valuable consideration, the construction,fitting out,improvement or repair of any building,road,bridge or other immovable property or fitting out,improvement or repair of any movable property. 1(u) 'Year' means the twelve months ending on the 31st day of March. 1. Substituted by Act 26 of 1959 w.e.f.1.5.1959 (2) 1(The Andhra Pradesh General Clauses Act, 1891 (Act 1 of 1891) shall apply for the interpretation of this Act as it applies for the interpretation of an Andhra Act.) 1. Substituted by Act ix of 1961 |