Who is a Wholesaler under Sales Tax Act, 1990?
Under the Sales Tax Act, 1990, a wholesaler is defined as a person who purchases goods from a manufacturer or importer and sells them to a retailer or another wholesaler. Wholesalers typically purchase goods in large quantities and sell them in smaller quantities, often at a lower price.
Difference between Wholesaler and Retailer
The main difference between a wholesaler and a retailer is the level of trade at which they operate. Wholesalers operate at the wholesale level, while retailers operate at the retail level. Wholesalers sell goods to retailers, who then sell the goods to consumers.
Other Differences between Wholesaler and Retailer
In addition to the level of trade at which they operate, there are a number of other differences between wholesalers and retailers. These differences include:
- The size of the businesses: Wholesalers are typically larger businesses than retailers.
- The types of goods they sell: Wholesalers typically sell a wider variety of goods than retailers.
- The location of their businesses: Wholesalers are typically located in industrial areas, while retailers are typically located in commercial areas.
- The way they market their goods: Wholesalers typically market their goods to businesses, while retailers typically market their goods to consumers.
In nutshell Wholesalers and retailers play an important role in the economy. Wholesalers help to move goods from manufacturers and importers to retailers, who then sell the goods to consumers. Retailers make it easier for consumers to purchase goods, and they also provide a variety of services to consumers, such as delivery and returns.