(a)  (i)     Every dealer shall be required to pay tax under Tripura Value Added Tax Act on the sale and purchase value of taxable goods at every stage of sale and purchase of those goods till the sale and purchase to consumer, at the rate specified in the schedule of the Tripura Value Added Tax Act, 2005 other than the dealers whose taxable turnovers during a period of 12 months immediately preceding the commencement of the Act do not exceed Rs.3.00 lacs.                

Provided no deduction would be allowed for expenses in arriving at the sale and purchase price (base price) upon which Tripura Value Added Tax is calculated. However, to compute the tax base the price would be exclusive of Tripura Value Added Tax, provided expenditure in relation to sale and purchase such as freight, insurance etc. incurred by the selling dealer shall be included in arriving at the taxable sale and purchase price. On the other hand, where seller has merely incurred expenditure as an agent on behalf of his purchaser who subsequently re-imburse him, these re-imbursement are not deductable. The treatment of delivery charges will depend on the time at which titles to the goods passes. Delivery charge will be included in the taxable sale and purchase value wherein it is charged before passing the title of the goods to the purchaser.

(ii) Every dealer other than the dealer under sub-section (2) and (3) of section 4 of the Act to whom sub-section (1) of section 3 of the Act does not apply shall be liable to pay tax under this Act in respect of sales or supplies or purchases of goods effected by him in Tripura w.e.f. the date on which his turnover in a year first exceeds the limit specified in Sub-section (1) of Section 3 but for the purpose of assessment of the tax for that year, his entire turnover shall be taken into consideration.

(b) Under this Act tax would be charged on all transactions of sales which include transfer of property in goods involved in execution of works contract and transfer of right to use any goods. However, in case of zero rated goods such as exports, the tax on inputs is refundable Provided that input tax credit shall be allowed by the concerned assessing authority only. In determining the turnover for transfer of goods involved in the execution of works contract, the amounts specified below shall be excluded.

(c) The amounts representing the purchase price of such goods involved in the execution of such works contract, as are exempt from tax under section 5 of the Act.

(d) The amounts representing the value of such goods, involved in the execution of such works contract as were supplied to the contractor by the contractee himself, provided the property in such goods remains under the terms of the contract throughout with the contractee and the contractor is bound to return the unused goods to the contractee. Provided no value of such goods is realised or realiseable in any way by the contractee from the contractor.

Explanation :-  For the purpose of this rule, "Contractual transfer price of goods" means the amounts which have been received or receivable by a dealer for transfer of property in goods.