In this Act, unless the context otherwise requires, -

(20) "purchase price" means the amount of valuable consideration paid or payable by a person for any purchase made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged.

Explanation I. -The amount of duties levied or leviable on the goods under the Central Excise Act, 1944 (I of 1944), or the Customs Act, 1962 (52 of 1962) or the Bombay Prohibition Act, 1949 (Bom XXV of 1949) shall be deemed to be part of the purchase price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.

Explanation- IA.-(Omitted w.e.f. 01-07-2017).

Explanation II. -Purchase price shall not include tax paid or payable by a person in respect of such purchase.

Explanation III. -Purchase price shall include the amount paid by the purchaser by way of deposit whether refundable or not which has been paid whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said purchase of goods;

Explanation IV. -Omitted w.e.f 1st July, 2007 by Ordinance No.V