Purchase Price [Section 2(20)]
Purchase Price means the amount of valuable consideration paid or payable by a
person for any purchase made. It also includes any sum charged for anything done
by the seller in respect of the goods at the time of or delivery thereof, but excluding
the cost of insurance for transit or of installation when such cost is separately
charged. Central excise duty and Customs duty is a part of purchase price whether
paid or payable by or on behalf of the seller or purchaser or any other person.
However, purchase price does not include any sales tax, paid or payable by a person
in respect of such purchases. It also includes the amount of deposits paid by the
purchase (whether refundable or not) which is incidental to the purchase of said goods.
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