(1) The tax shall be levied under this Act on every dealer who is liable to pay tax under section10 on his taxable turnover of sales.

(2) For the purposes of sub-section(1), the expression " taxable turnover of sales" shall mean, in relation to a dealer liable to pay tax on sale of goods under subsection (1) of section 10, that part of the gross turnover of sales during any period which remains after deducting therefrom -

(a) the turnover of sales of goods exempted from tax under section 17;

(b) the turnover of sales of goods which are shown to the satisfaction of the Commissioner to have taken place -

(i) in course of inter-State trade or commerce, or

(ii) outside the State, or

(iii) in the course of import into or export out of the territory of India.

(b-1) (Omitted w.e.f. 01-07-2017);

Explanation.- Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 (74 of 1956) shall apply for determining whether or not a particular sale has taken place in the manner indicated in sub-clauses (i), (ii) and (iii)of clause (b);

(c) (Omitted w.e.f. 01-07-2017):

Provided that where the amount charged towards labour, services and other like charges in such contract are not ascertainable from the terms and conditions of the contract or the books of account maintained for the purpose, the amount of such charges shall be calculated at the prescribed rate; and

(d) such other sales on such conditions and restrictions as may be prescribed.

(3) (Omitted w.e.f. 01-07-2017).

(4) (a) Notwithstanding anything contained in the Sale of Goods Act, 1930 (3 of 1930),but subject to clauses (b) and (c), the sale of goods shall, for the purposes of this Act, be deemed to have taken place when title or possession of the goods is transferred whether or not there is receipt of payment for such sale.

(b) Where, before the time applicable under clause (a), the dealer selling the goods issues a tax invoice in respect of such sale, the sale shall, to the extent it is covered by the invoice or payment, be deemed to have taken place at the time the invoice is issued or the payment is received, whichever is earlier.

(c) Where a dealer issues a tax invoice in respect of any sale not falling under clause (b) within fourteen days from the time specified under clause (a), the sale shall be deemed to have taken place at the time the invoice is issued.