Goods with customers for approval on sale or return basis
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these good not considered as sale rather they only consider sale when approval is received.
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Businessman provides many facilities to his customers with a view to increase his sales. One of the facilities is that goods are delivered to the customers with the option to retain or return the same within a specified short period. When a businessman sends goods with such an option it is generally called “Sale or Return”.
When a businessman sends goods under “Sale or Return” basis to a customer, it cannot be treated as sales. Delivery of goods on approval basis implies a change of possession only and not a transfer of ownership unless the specified period expires without return or the customer earlier informs of his approval.
When a businessman sends goods under “Sale or Return” basis to a customer, it cannot be treated as sales. Delivery of goods on approval basis implies a change of possession only and not a transfer of ownership unless the specified period expires without return or the customer earlier informs of his approval.
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