Turnover under sales tax law includes purchases, so a new dealer can be assessed when the monthly threshold is met.

Section 18 of the U.P. Sales Tax Act applied to a dealer who commenced business during the assessment year if the average estimated monthly turnover for the remaining period met the statutory threshold. The definition of "turnover" in section 2(i) included not only sales receipts but also purchase value. On the stated facts, the dealer's sales turnover alone was below the limit, but the purchases brought the average monthly turnover above the prescribed threshold, so the dealer was assessable to tax under section 18.

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Issues: Whether purchases formed part of "turnover" for the purpose of section 18 of the U.P. Sales Tax Act and whether, on that basis, the dealer who commenced business during the assessment year was liable to be assessed to tax despite sales turnover being below the minimum limit.

Analysis: Section 18 applied to a dealer commencing business during the assessment year if the average estimated monthly turnover for the remainder of the year met the statutory threshold. The definition of "turnover" in section 2(i) covered not only the amount for which goods were sold but also the amount for which goods were bought. On the facts, while the sales turnover alone was below the relevant monthly threshold, the purchase value during the relevant period was sufficient to take the average monthly turnover above the prescribed limit. The dealer therefore fell within the charging and assessment scheme under section 18.

Conclusion: The purchases were includible in turnover and the dealer was assessable to tax under section 18; the question was answered in the affirmative in favour of the Revenue and against the assessee.

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