https://www.taxtmi.com/caselaws?id=156436 In hire-purchase transactions, the sale price is determined when the option to purchase is exercised, taking the original price and permissible depreciation into account, but not adding interest for late payment as part of the sale price. The initial payment may be included in the amount on which depreciation is worked out, while registration fee and insurance charges are excluded from the basic price for taxable turnover computation. On maturity of the transaction, the price is not to be inflated by interest for half the delayed-payment period. The stated principle is that delayed-payment interest is not a constituent of the sale price in a typical hire-purchase arrangement. en-us Sat, 18 Feb 1989 00:00:00 +0530 Thu, 19 Sep 2013 16:13:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=156436 In hire-purchase transactions, the sale price is determined when the option to purchase is exercised, taking the original price and permissible depreciation into account, but not adding interest for late payment as part of the sale price. The initial payment may be included in the amount on which depreciation is worked out, while registration fee and insurance charges are excluded from the basic price for taxable turnover computation. On maturity of the transaction, the price is not to be inflated by interest for half the delayed-payment period. The stated principle is that delayed-payment interest is not a constituent of the sale price in a typical hire-purchase arrangement. Case-Laws VAT and Sales Tax Sat, 18 Feb 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=156436