https://www.taxtmi.com/caselaws?id=99844 A hire-purchase arrangement is not a completed sale until the hirer exercises the option to purchase and the contractual terms are fulfilled; tax becomes exigible only at that stage. The State Legislature could not deem such a transaction to be a sale before property passed, because the constitutional entry on sales tax carries the same meaning as "sale of goods" under the Sale of Goods Act. For valuation, the whole hire amount is not sale price and the nominal option price alone is also insufficient; the taxable price must be determined on a reasonable basis at the time of the eventual sale, with depreciation and related factors considered. en-us Tue, 10 Nov 1964 00:00:00 +0530 Mon, 21 Jul 2014 10:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99844 A hire-purchase arrangement is not a completed sale until the hirer exercises the option to purchase and the contractual terms are fulfilled; tax becomes exigible only at that stage. The State Legislature could not deem such a transaction to be a sale before property passed, because the constitutional entry on sales tax carries the same meaning as "sale of goods" under the Sale of Goods Act. For valuation, the whole hire amount is not sale price and the nominal option price alone is also insufficient; the taxable price must be determined on a reasonable basis at the time of the eventual sale, with depreciation and related factors considered. Case-Laws VAT and Sales Tax Tue, 10 Nov 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99844