Taxable Quantum

The quantum of sales tax is related to the sales price; it must be determined to be the consideration for the transfer of the goods when the delivery of the goods takes place. The consideration for the sale of the goods is the total amount that is agreed to be paid before the transfer of the goods takes place in a hire purchase contract. In other words, sales tax is levied on the entire amount payable under the agreement by deeming it to be the sale price of the goods instead of reducing the amount the hire charges, assumed to be included, and depreciation in the
value of the goods for the period when the goods were on hire.

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