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‘Goods’ means every kind of movable property including goods of incorporeal and intangible nature but there are some exclusions, such as newspapers, actionable claims, money, shares and securities and lottery tickets.

Businesses engaged in the buying and selling of goods within the scope of the VAT law are referred to as dealers. The meaning of ‘sale’ for VAT purposes A transaction of sale can be a:

• normal sale of goods;

• sale of goods under hire-purchase system;

• deemed sale of goods used / supplied in the course of execution of works contract;

• deemed sale of goods given on lease.

The rate of tax applicable to the goods sold under various classes of sales is uniform. However, in respect of normal sales of goods and deemed sales of goods under works contract and specified deemed sale of goods given on lease, the Act provides for an optional method for discharging tax liability by way of composition. Being so, the tax liability has to be determined with reference to the option exercised by the dealer for discharging tax liability.