Broad turnover definition brings sales tax recoveries and charity collections within taxable sale consideration.

The amended definition of turnover was construed broadly to include the full amount charged in a sale transaction, not merely the base price. Amounts recovered from purchasers as sales tax were treated as part of the consideration for the sale and therefore included in turnover. Likewise, sums collected as dharmam or charity on the occasion of sales were also held to form part of turnover because the label, separate invoicing, or earmarked use of the money did not change its character as part of the sale price. The result was that both categories of collections fell within taxable turnover under the amended sales tax law.

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Issues: (i) Whether sales tax collected by a dealer from purchasers formed part of the dealer's turnover under section 2(i) of the Madras General Sales Tax Act as amended by the Madras General Sales Tax (Andhra Amendment) Act, 1954. (ii) Whether sums collected by a dealer from purchasers as dharmam or charity on the occasion of sales formed part of the dealer's turnover.

Issue (i): Whether sales tax collected by a dealer from purchasers formed part of the dealer's turnover under section 2(i) of the Madras General Sales Tax Act as amended by the Madras General Sales Tax (Andhra Amendment) Act, 1954.

Analysis: The amended definition of turnover was held to be wide enough to include the total amount charged as consideration for the sale, including sums charged by the dealer whatever be their description. The repeal of the earlier collecting provision and the retrospective amendment showed a legislative intent to bring within turnover the amounts collected from purchasers to cover sales tax payable by the dealer. The Court treated the amount recovered from the buyer as part of the price paid for the goods and not as a separate amount outside turnover.

Conclusion: Sales tax collected from purchasers was included in turnover and not excluded.

Issue (ii): Whether sums collected by a dealer from purchasers as dharmam or charity on the occasion of sales formed part of the dealer's turnover.

Analysis: The expression "any other sums charged by the dealer, whatever be the description, name or object thereof" was construed broadly. The voluntary character of the payment, its separate entry in the bill, and the earmarking of the collections for charity did not alter the character of the amount as part of the consideration for the sale. The Court held that the entire amount paid by the buyer on the occasion of the sale was part of the price, even if split under different heads in the accounts or invoice.

Conclusion: Dharmam collections formed part of turnover and were not excludable.

Final Conclusion: The amended sales tax law was construed to include within turnover both sales tax recovered from purchasers and charitable collections made in connection with sales, and the revisions succeeded accordingly.

Ratio Decidendi: Under the amended definition of turnover, all amounts charged by a dealer as part of the sale transaction form part of the taxable turnover, irrespective of the label attached to them or their subsequent use.

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