Purchase turnover includes arhat charges where commission forms part of consideration paid through the kachcha arhatia.

Under the U.P. Sales Tax Act, the turnover of purchases includes the aggregate purchase price payable by a dealer, and purchase price means the valuable consideration paid or payable for the goods, less only the specified cash discount. Where purchases were finalised through a kachcha arhatia who collected both the goods price and his commission, the commission formed part of the consideration for the purchases and was not separately deductible. The arhat charges were therefore includible in the turnover of purchases, and the issue was answered against the assessee.

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Issues: Whether arhat charges paid to the kachcha arhatia formed part of the turnover of purchases under the U.P. Sales Tax Act.

Analysis: The expression "turnover of purchases" under section 2(ii) covers the aggregate of the amounts of purchase price paid or payable by a dealer, and "purchase price" under section 2(gg) means the valuable consideration paid or payable for the purchase of goods, less only the specified cash discount. On the facts found, the purchases were finalised through the kachcha arhatia, who collected both the actual price of the goods and his commission. The amount paid to the arhatia was therefore part of the consideration paid for the purchases and not an amount separable from the purchase price.

Conclusion: The arhat charges were includible in the turnover of purchases and the question was answered against the assessee.

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