What is Sale Price?

Sale Price [Section 2(25)]
Sale price means the amount of valuable consideration paid or payable to a dealer
for any sale made. It also includes any sum charged for anything done by the dealer
in respect of goods at the time of or before delivery of goods, but excluding the cost
of insurance for transit or for installation, when such cost is separately charged.
Central excise duty and Customs duty paid or payable on goods whether by or on
behalf of the seller or purchaser or any other person is to be part of the sale price.
But sale price shall not include sales tax, paid or payable on such sale. It also
includes deposit received by the seller, (whether refundable or not) which is
incidental to the transaction of sale. As per Rule 3, deposits returnable within 6
months are not included in sale price.
Sale price shall not, however, include VAT chargeable under this Act, paid or payable
to a seller in respect of the sale transaction.
The amount of valuable consideration paid or payable of a dealer for the sale of
Drugs specified in entry 29 in Schedule C shall be the maximum retails price printed
on the package containing the Drug.
Freight, handling charges, packing charges etc form part of sale price.