Separate transportation and installation charges fall outside VAT turnover when sale is completed at the seller's premises and title passes there.

Transportation and installation charges separately recovered by a dealer were held not to form part of sale price or taxable turnover under the Karnataka Value Added Tax Act, 2003. Section 2(36) covers amounts charged for things done by the dealer in respect of the goods sold at or before delivery, but where price lists and invoices show ex-showroom pricing, separate billing for transport and installation, and title passes at the seller's premises, the sale is complete there. Charges for post-sale services undertaken independently after transfer of title remain outside turnover, and separate service tax treatment supported that characterisation.

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Issues: Whether transportation charges and installation charges collected separately by the dealer form part of the sale price or turnover for the purpose of levy of value added tax under the Karnataka Value Added Tax Act, 2003.

Analysis: Section 2(36) of the Karnataka Value Added Tax Act, 2003 includes within turnover sums charged for anything done by the dealer in respect of the goods sold at the time of or before delivery. On the facts, the price lists and invoices showed ex-showroom prices, separate billing for transportation and installation, and transfer of title at the seller's place. Where the sale is complete at the seller's premises and the later transportation or installation is undertaken separately, such charges do not constitute part of the amount for which the goods are sold. The fact that service tax had been paid on those charges further supported their separate character as service consideration.

Conclusion: Transportation charges and installation charges, being separately recovered and relating to post-sale services after transfer of title at the seller's premises, do not form part of sale price or taxable turnover.

Ratio Decidendi: Charges for transportation and installation are not includible in turnover under Section 2(36) of the Karnataka Value Added Tax Act, 2003 when the sale is completed at the seller's place, title passes there, and such charges are separately levied for independent services.

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