CHAPTER IX

ACCOUNTS TO BE MAINTAINED BY DEALERS

Section 62: Maintenance of Accounts

(1) Every dealer or a person registered or liable to be registered under this Act, or liable to pay tax under this Act, including a dealer covered under sub-section (8) of Section 4 and Section 7 of this Act, shall keep and maintain a true and correct account showing the value of goods purchased, manufactured or sold or supplied by him and such other records as may be prescribed under this Act or the Rules made or Notifications issued thereunder:

Provided that this sub-section shall not apply to such dealers as are not liable to taxation under this Act.

(2) A manufacturer liable to pay tax under this Act shall in addition to the accounts referred to in sub-section (1), maintain stock books in respect of raw material as well as products obtained at every stage of production:

Provided that in the case of any class of manufactures, the aggregate of whose turnover, as referred to in Section 3, in an assessment year does not exceed five lakh rupees, the Commissioner and in any other case the State Govt. may relax the requirements of this sub-section subject to such conditions and restrictions as he or it may deem fit to specify.

(3) The Commissioner may, subject to such conditions or restrictions as may be prescribed in this behalf, by notice in writing direct any dealer or by notification direct any class of dealers generally to keep such accounts and records, including records of purchases, sales or delivery of goods in such form and in such manner as may be specified.

(4) Every registered dealer or a dealer referred to in sub-section (1) or sub-section (2) shall keep at his place of business all accounts, registers and documents maintained in the course of business.

(5) Where a dealer as referred to in sub-section (1) or sub-section (2) has established branch offices of his business in the State other than the principal place of business, the relevant accounts, registers and documents in respect of each such branch shall be kept by him at such branch.

(6) A dealer who maintains or keeps books or accounts in a computer shall prepare floppies of such books or accounts or documents and shall maintain them as part of accounts. He shall also maintain day-to-day print out of all such books, accounts and documents.

(7) Any dealer who claims input tax credit under Section 6 shall maintain a register in respect of computation of input tax credit tax period wise.

(8) Where a dealer purchases or receives or disposes of manufactured goods in more than one of the following ways:

(i) makes sale of taxable goods inside the State; or

(ii) dispatches any taxable goods to other dealers for sale inside the State; or

(iii) makes sale of taxable goods in the course of inter-state trade or commerce; or

(iv) makes sales in the course of export out side the territory of India ; or

(v) dispatches any taxable goods out side the State otherwise than by way of sale,

shall keep separate account of sales or dispatches and also purchases and receipts of goods for such purposes separately as far as possible.

(9) Every dealer liable to pay tax shall prepare an inventory of goods purchased from in side the State or imported from out side the State along with their purchase value as on the dates :

(i) goods held in the opening stock on the date on which the dealer becomes liable to pay tax;

(ii) goods held in the closing stock on the last date of each financial year;

(iii) goods held in opening stock on the first date of the assessment year in which the dealer applies for cancellation of registration under sub-section (1) of Section 18;

(iv) goods held in stock at the time of discontinuance of business:

Provided that if the dealer manufactures any goods and holds any

manufactured or semi-manufactured goods in stock, he shall also prepare inventory of goods and record estimated purchase value of goods used in manufactured or semi-manufactured goods as constituent and estimated purchase value of goods used in the manufacture of such goods as fuel or consumable stores or lubricants or packing material.

(10) Where a registered dealer or a dealer liable to pay tax who consigns any taxable goods to another dealer whether as a result of sale or other wise:

(i) such dealer shall issue in the prescribed manner a challan or a transfer invoice in original containing prescribed particulars, to the purchaser or the consignee person and the same shall accompany the goods during the journey of goods and the duplicate copy shall be preserved by the dealer as part of his accounts;

(ii) person transporting the goods for delivery to consignee shall fill in the particulars in the relevant columns in the transfer memo or challan and shall deliver such documents to the consignee along with the goods;

(iii) consignee dealer of goods shall not transfer any such document to any other person and preserve the same for the period prescribed under Section 64.

(11) Where a dealer receives any certificate or any form of declaration prescribed under this Act or Rules made or notifications issued thereunder:

(i) he shall use them in the prescribed manner and keep an account of such used or unused certificates or forms of declarations in the prescribed manner;

(ii) he shall not transfer to any person and no person shall receive from any person any certificate or any form of declaration except for lawful purposes;

(iii) any dealer who receives any prescribed form including duplicate copy thereof and other connected documents, shall preserve them for a period prescribed under Section 64.

Section 63: Tax Invoice

(1) Every registered dealer making a taxable sale including the sale of declared goods in the course of inter-state trade and commerce, to another dealer, whether registered or not, shall provide that purchaser at the time of sale with a Tax Invoice containing such particulars as specified in sub-section (2), and retain a copy thereof. The amount of tax charged on sales of goods shall be shown separately.

Provided that if an invoice has been issued under the provisions of Central Excise Tariff Act, 1985, it shall be deemed to be a tax invoice if it contains all the particulars specified in sub-section (2).

(2) The Tax Invoice issued under sub-section (1) shall contain the following particulars on the original as well as copies thereof-

(i) the word “Tax Invoice” in bold letters at the top or any prominent place;

(ii) the name, address and registration certificate number of the selling registered dealer;

(iii) the name, address and registration certificate number of the purchasing registered dealer;

(iv) an individual serialised number and the date on which the tax invoice is issued;

(v) description, quantity, volume and value of goods sold and amount of tax charged thereon indicated separately;

(vi) signature of the selling dealer or his manager, agent or servant duly authorised by him;

(vii) the name and address of the printer and first and last serial numberof tax invoices printed and supplied by him to the dealer.

(3) Tax Invoice shall not be issued but a Retail Invoice, as per provisions of sub-section (5), shall be issued by a dealer in the following circumstances:-

(i) a registered dealer is paying presumptive tax in lieu of tax under sub-section (9) of Section 4 or paying composition money in lump sum in lieu of tax under Section 7 of this Act; or

(ii) the sale in the course of export out of the territory of India ; or

(iii) the sale of goods, other than the declared goods, in the course of inter-state trade and commerce; or

(iv) the sale of Special Category Goods as specified in

Schedule III.

(4) Every dealer other than a registered dealer, liable to pay tax while making sale of any goods, shall issue to the purchaser a Retail Invoice or bill or cash memo containing such particulars as may be prescribed, and such dealer shall not charge any amount as tax on sale of goods.

(5) The retail invoice shall contain the following particulars on the original as well as copies thereof:-

(i) the words “Retail Invoice” in bold letters at the top or in a prominent place;

(ii) the name, address and registration certificate number of the selling registered dealer;

(iii) in case the sale is in the course of export out of the territory of India, the name, address and registration number if any, of the purchasing dealer/ foreign buyer and the type of statutory form, if any, against which the sale has been made;

(iv) an individual serialised number and the date on which the retail invoice is issued;

(v) description, quantity, volume and value of goods sold

inclusive of tax charged thereon ;

(vi) signature of the selling dealer or his manager, agent or servant duly authorised by him;

(vii) the name and address of the printer, and first and last serial number of retail invoices printed and supplied by him to the dealer.

(6) When a registered dealer sells any goods specified under Schedule 1 which are exempt from tax, exceeding such amount in value as may be prescribed, in any one transaction to any person, he shall issue to the purchaser a retail invoice and retain a copy thereof:

Provided that in a case in which a purchaser demands a sale invoice in respect of such sale, the dealer shall issue to the purchaser a retail invoice, irrespective of the amount of sale.

(7) Tax Invoice shall be issued in triplicate. The original shall be issued to the purchaser and the first copy shall be issued to the dealer or any other person, as the case may be, taking delivery of the goods and the second copy shall be retained by the selling dealer.

(8) Retail Invoice shall be issued in duplicate. The original shall be issued to the purchaser or, as the case may be, the person taking the delivery of goods and the duplicate copy shall be retained by the selling dealer.

(9) Not more than one Tax Invoice shall be issued for each taxable sale.

(10) An original tax invoice or retail invoice shall not be provided to a person in any circumstances other than those specified in this Section, but a copy marked as Duplicate may be provided in the prescribed manner, if the person receiving the original invoice so requests for the reason that the original has been lost.

(11) The particulars of tax invoice and retail invoice shall be recorded in the form and in the manner as may be prescribed.

Section 64: Period for which Accounts to be retained

(1) Every dealer shall preserve all accounts required to be maintained by him in the course of his business, including tax invoices, retail invoices, debit credit memos and vouchers relating to productions, stocks, purchases, deliveries and sales, for a period of eight years after the close of the assessment year to which they relate or till the assessment or reassessment or any other proceedings under the Act for such assessment year is completed, which ever is later.

(2) Every dealer who maintains the records electronically shall retain them in electronically readable format for the period specified in sub-section (1).

Section 65: Audit of Accounts

(1) Where in any particular year gross turnover of a dealer exceeds twenty five lac rupees or such other amount as the Commissioner may, by notification in the Official Gazette, specify then such dealer shall get his accounts, in respect of that year, audited by an accountant with in six months from the end of that year and obtain a report of such audit in prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

(2) A true copy of such report shall be furnished by such dealer to the assessing authority by the end of the month after the expiry of the period of six months during which the audit is required to be completed as per sub-section (1).

Explanation: For the purpose of this Section, “Accountant” means a Chartered Accountant within the meaning of the Chartered Accountant’ Act 1949 and includes a person who by virtue of the provisions of sub-section (2) of Section 226 of the Companies Act, 1956, is entitled to be appointed to act as an auditor of Companies registered under the said Act.