Language

section 3

Re-lettered by Act 9 of 1964 w.e.f. 1.4.1964.

The 1[Karnataka] Sales Tax Act, 1957

Tax195767 sections6 chapters

Statutory text

1[(f -1a) "body corporate" means a corporation, a company as defined under the Companies Act, 1956 (Central Act 1 of 1956) and a Company incorporated outside India but does not include,—

(i) a corporation sole;
(ii) a co-operative society registered under any law relating to co- operative societies; and
(iii) any other body corporate, not being a company as defined in the Companies Act, 1956, which the State Government may, by notification in the official Gazette, specify in this behalf.] 1[(f-1b) Brand name means a name or trade mark registered or pending registration or pending registration of transfer under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958) and includes a name or a mark such as a symbol, monogram, label, signature or invented words or any writing which is used in relation to a product, for the purpose of indicating, or so as to indicate, a connection in the course of trade between the product and a dealer whose total turnover during any year exceeds one hundred lakh rupees, using such name or mark with or without any indication of the identity of the said dealer;]

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

¹ Substituted by Act 5 of 2002, w.e.f. 1.4.2002.

Sales Tax [1957: KAR. ACT 25

2[(f -2) `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 with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and
(ii) any transaction in connection with, or incidental or ancillary to such trade, commerce, manufacture, adventure or concern;] (f-3) "casual trader" means a person who has, whether as principal, agent or in any other capacity, occasional transactions of a business nature involving the buying, selling, supply or distribution of goods in the State, whether for cash or for deferred payment, or for commission, remuneration, or other valuable consideration;]

¹ Inserted by Act 9 of 1964 w.e.f. 1.4.1964

² Substituted by Act 17 of 1976 w.e.f. 1.4.1976.

(g) "Commissioner" means any person appointed to be a Commissioner of Commercial Taxes under section 3;
(h) " 1[Assistant Commissioner of Commercial Taxes] " or " 1[Commercial Tax Officer] " means any person appointed to be a 1[Assistant Commissioner of Commercial Taxes] or 1[Commercial Tax Officer] respectively under section 3; 1[(h-1) "Company" shall have the meaning assigned to it in the Companies Act, 1956 (Central Act 1 of 1956);]
- (i) "to cultivate" with its grammatical variations and cognate expressions means to carry on any agricultural operation;
(j) "to cultivate personally" means to cultivate on one's own account,-
- (i) by one's own labour, or
- (ii) by the labour of one's own family, or
- (iii) by servants on wages payable in cash or kind but not in crop share, or by hired labour under one's personal supervision or the personal supervision of any member of one's family; Explanation I.— A person who is a widow or a minor or is subject to any physical or mental disability shall be deemed to cultivate the land personally if it is cultivated by her or his servants or by hired labour. Explanation II.—In the case of undivided family, the land shall be deemed to have been cultivated personally, if it is cultivated by any member of such family. 1957: KAR. ACT 25] Sales Tax 1[(k) "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) 2[an industrial, commercial or trading undertaking of the 3[Government of Karnataka] , the Central Government, a State Government of any State, other than the 3[State of Karnataka] ] , a local authority, company, a Hindu undivided family, an Aliyasanthana family, a firm, a society, a club or an association which carries on such business;
- (ii) a casual trader;
- (iii) a commission agent, a broker or del credere agent or 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 principal;
- (iv) a non-resident dealer or an agent of a non-resident dealer, a local branch of a firm or company or association situated outside the State;
- (v) a person who sells goods produced by him by manufacture or otherwise; 4[(vi) a miller who carries on such business;] 5[(vi-1) an unincorporated association or body of persons which supplies goods to its members for cash, deferred payment or other valuable consideration;] 6[(vii) a person engaged in the business of transfer otherwise than in pursuance of a contract of property in any goods for cash, deferred payment or other valuable consideration; 3. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 1.11.1973. 5.Shall be and shall deemed to have been Inserted by Act 5 of 2010 w.e.f.02.02.1983.
- (viii) a person engaged in the business of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
- (ix) a person engaged in the business of delivery of goods on hire purchase or any system of payment by instalments;
- (x) a person engaged in the business of 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.] 1[Explanation 1] .—A society (including a co-operative society), club or firm or an association which, whether or not in the course of business, buys, sells, supplies or distributes goods from or to its members for cash, or

¹ Substituted by Act 5 of 1993 w.e.f. 9.11.1992.

¹ Inserted by Act 15 of 1991 w.e.f. 1.4.1991.

¹ Substituted by Act 9 of 1964 w.e.f. 1.4.1964.

² Substituted by Act 7 of 1966 w.e.f. 1.4.1966.

⁴ Inserted by Act 13 of 1982 w.e.f. 1.4.1982.

⁶ Inserted by Act 27 of 1985 w.e.f. 1.8.1985.

Sales Tax [1957: KAR. ACT 25

¹ Renumbered by Act 17 of 1976 w.e.f. 1.4.1976.

for deferred payment or for commission, remuneration or other valuable consideration, shall be deemed to be a dealer for the purposes of this Act;

1[Explanation 2.—The Central Government or

¹ Inserted by Act 17 of 1976 w.e.f. 1.4.1976.

² Substituted by Act 4 of 1992 w.e.f. 1.4.1992.

2[a State Government or a local authority or a statutory body] which whether or not, in the course of business, buy, sell, supply or distribute goods, directly or otherwise, for cash or deferred payment or for commission, remuneration or other valuable consideration shall be deemed to be a dealer for the purposes of this Act;]

1[Explanation 3.—In respect of the transfer of the right to use feature films, the person who transfers such right to the exhibitor and from whom the exhibitor derives the right to make such use shall be deemed to be the dealer under this clause;]

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

Exception.— An agriculturist who sells exclusively agricultural produce grown on land cultivated by him personally

¹ Inserted by Act 36 of 1986 w.e.f. 8.10.1986.

1[or a person who is exclusively engaged in poultry farming and sells the products of such poultry farm] shall not be deemed to be a dealer within the meaning of this clause:]

1[Provided that where the agriculturist is a company

selling pepper,

3[cardamom, rubber

4[timber, wood, raw cashew] or coffee]

grown on land cultivated by it personally, directly or otherwise, such company

2[x x x]

shall be deemed to be a dealer in respect of turnovers relating to sales of such produce.]

¹ Inserted by Act 15 of 1991 w.e.f. 1.4.1991.

² Inserted by Act 6 of 1995 and omitted by Act 1 of 1996 w.e.f. 1.4.1995

³ Substituted by Act 18 of 1994 w.e.f. 1.4.1994.

⁴ Inserted by Act 4 of 1999 w.e.f. 1.4.1999.

(l) " 1[Joint Commissioner] " means any person appointed to be a 1[Joint Commissioner] of Commercial Taxes under section 3; 1[(m) "goods" means all kinds of movable property (other than newspapers, actionable claims, stocks and shares and securities) and includes livestock, all materials, commodities, and articles 2[(including goods, as goods or in some other form involved in the execution of a works contract or those goods to be used in the fitting out, improvement or repair of movable property)] and all growing crops, grass or things attached to, or forming part of the land which are agreed to be severed before sale or under the contract of sale;] 1957: KAR. ACT 25] Sales Tax 1[(m-1) "goods vehicle" means any kind of vehicle used for carriage of goods either solely or in addition to passengers (other than aeroplanes and rail coaches) and includes push cart, animal drawn cart, tractor-trailer and the like;] 1[ 2[(m-2)] " 3[Additional Commissioner] " means any person appointed to be a 3[Additional Commissioner] of Commercial Taxes under section 3;] 2. Re-numbered as (m-2) by Act 23 of 1983 w.e.f. 18.11.1983. 1[(n) x x x] 1[(o) x x x] 1[(o-1) "miller" means a person who engages himself in rice milling operations in a rice mill or in causing operations in an oil mill 2[or in a saw mill] or in dehusking in a decorticating 3[factory or ginning and pressing operation in a ginning factory 4[curing of coffee seeds in a coffee curing works] 4 5 [hulling of coffee beans and coffee seeds in a coffee hulling unit] and includes a person] who, or the authority which, has the ultimate control over the affairs of 3[such mill or such factory] 4[or such works] 5[or such unit] and when the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent; Explanation.—For the purpose of this clause,—
- (i) "rice mill" means the plant and machinery with which, and the premises including the precincts thereof in which or in any part of which, rice milling operation is carried on;
- (ii) "oil mill" means the plant and machinery with which oil is extracted from oil seeds; 1[x x x] 1[(iii) "saw mill" means the plant and machinery with which and the premises including the precincts thereof in which or in any part of which, sawing operation is carried on; 2[x x x] ]

¹ Substituted by Act 5 of 1993 w.e.f. 9.11.1992.

¹ Substituted by Act 9 of 1964 w.e.f. 1.4.1964.

² Substituted by Act 27 of 1985 w.e.f. 1.8.1985.

¹ Inserted by Act 23 of 1983 w.e.f. 18.11.1983.

¹ Inserted by Act 10 of 1983 w.e.f. 1.4.1983.

³ Substituted by Act 5 of 1993 w.e.f. 9.11.1992.

¹ Omitted by Act 29 of 1961 w.e.f. 7.12.1961.

¹ Omitted by Act 9 of 1986 w.e.f. 1.4.1986.

¹ Inserted by Act 9 of 1970 w.e.f. 1.4.1970.

² Inserted by Act 17 of 1976 w.e.f. 1.4.1976.

³ Substituted by Act 27 of 1985 w.e.f. 1.8.1985.

⁴ Inserted by Act 3 of 1998 w.e.f. 1.4.1998.

⁵ Inserted by Act 5 of 2001 w.e.f. 1.4.2001

¹ Omitted by Act 17 of 1976 w.e.f. 1.4.1976.

¹ Inserted by Act 17 of 1976 w.e.f. 1.4.1976.

² Omitted by Act 27 of 1985 w.e.f. 1.8.1985.

Sales Tax [1957: KAR. ACT 25

¹ Inserted by Act 3 of 1998 w.e.f. 1.4.1998.

1[(iiia) "Coffee curing works" means the plant and machinery with which and the premises including the precincts thereof in which or in any part of which, curing of coffee seeds is carried on.]

¹ Inserted by Act 5 of 2001 w.e.f. 1.4.2001

1[(iii-b) “Coffee hulling unit” means the plant and machinery with which and the premises including the precincts there of in which or in any part of which, hulling or curing coffee beans or coffee seeds is carried on.]

1[(iv)] "decorticating factory" means any machinery with which the groundnut seeds are separated from groundnuts (with husk);]

² Inserted by Act 27 of 1985 w.e.f. 1.8.1985.

2[and] 1. Re-numbered by Act 17 of 1976 w.e.f. 1.4.1976.

1[(v) "ginning factory" means the plant and machinery with which cotton is ginned and pressed into bales.]

¹ Inserted by Act 27 of 1985 w.e.f. 1.8.1985.

(p) "notification" means a notification published in the Official Gazette; 1[(q) "place of business" means any place where a dealer purchases or sells goods and includes,—
- (i) any warehouse, godown or other place where a dealer stores or processes his goods;
- (ii) any place where a dealer produces or manufactures goods;
- (iii) any place where a dealer keeps his books of account;
- (iv) in any case where a dealer carries on business through an agent (by whatever name called), the place of business of such agent;]
(r) "prescribed" means prescribed by rules made under this Act;
(s) "registered dealer" means a dealer registered under this Act; 1[(t) "sale" with all its grammatical variations and cognate expressions means every transfer of the property in goods 2[(other than by way of a mortgage, hypothecation, charge or pledge)] by one person to another in the course of trade or business for cash or for deferred payment or other valuable consideration, 3[and includes,— 4[(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 a works contract;
- (iii) a delivery of goods on hire purchase or any system of payment by instalments. 1957: KAR. ACT 25] Sales Tax
- (iv) a 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;] 5[(v) a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;
- (vi) 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, 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 a purchase of those goods by the person to whom such transfer, delivery or supply is made.]

¹ Substituted by Act 9 of 1964 w.e.f. 1.4.1964.

² Inserted by Act 27 of 1985 w.e.f. 1.8.1985.

³ Substituted by Act 27 of 1985 w.e.f. 1.8.1985.

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