Sales Tax Act 1972 (Act 64)
PART III - CHARGE TO TAX


Section 7. Determination of sale value.


(1) For the purposes of this Act the sale value of goods shall be:

    (a) in the case of goods sold by a taxable person to a person independent of him, the price for which the goods are actually sold;

    (b) in the case of goods sold otherwise by a taxable person, the price at which such goods would have been sold if they had been sold in the ordinary course of business to a person independent of the taxable person;

    (c) in the case of goods manufactured or acquired under the provisions of section 9 by a taxable person and-
      (i) used by him otherwise than as materials in the manufacture of taxable goods; or

      (ii) disposed of by him otherwise than by sale,
    the price at which such goods would have been sold if they had been sold in the ordinary course of business to a person independent of the taxable person at the time they were first so used or were so disposed of;

    (d) in the case of goods imported into the Federation for home consumption, the sum of the following amounts, namely:
      (i) the value of such goods for the purpose of customs duty, ascertained in accordance with the Customs Act 1967; and

      (ii) the amount of customs duty, if any, payable on such goods:

      Provided that in cases where the value of such goods cannot be ascertained in accordance with subparagraph (i), the value shall be determined in accordance with the definition of "value" in relation to imported goods in section 2 of the Customs Act 1967.
(2) For the purposes of subsection (1) (b) and (c), except in such cases as may be prescribed, the price at which goods would have been sold shall be determined as if such goods were sold on credit on usual trade terms, and no deduction made because of any discount, rebate, or allowance granted or offered in consideration of payment of the purchase money at or before the time of sale or within any specified time thereafter.

(3) Where goods are manufactured on behalf of any supplier of taxable goods from taxable goods supplied by him and the goods so manufactured are returned to the supplier of the taxable goods, then the sale value of the goods so manufactured may, subject to approval of the Director General, be the amount that the manufacturer charges for work performed by him.

[Ins Act A1058:s.4]
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