Simply speaking, a Sale is the complete transfer of Goods for some valuable consideration. Both complete transfer of the goods (including transfer of ownership) and consideration (money paid for acquiring the goods) are necessary ingredients for a sale to take place.
From the point of view of taxation, Sales are classified into three types:
- Intra-Sales Tax: Sales tax is levied by the Federal Government (Example: Central Sales Tax)
- Sales during Import / Export: Generally no sales tax is levied
- Iner-Sales Tax: Sales tax is levied by the State Government (Example: States Sales Tax)