Chapter VIII - Accounts and Issue of Acts, invoices or cash memoranda

Body 41. Accounts

(1) Every registered dealer and every dealer liable to pay tax under this Act shall maintain correct account of his purchases, sales and stocks showing value, of different kinds of goods subject to different rates of tax under this Act.

(2) Every dealer whose turnover in a year exceeds rupees One crore shall get his accounts audited by a chartered accountant before the prescribed date and furnish the report of such audit in such form and in such manner and within such time as may be prescribed.

(3) If the Commissioner considers that the accounts maintained by any dealer or any class of dealers do not sufficiently enable him to verify the returns referred to in sub-section (1) of Section 19 or the assessment cannot be made on the basis thereof, he may by an order, require any dealer or by notification any class of dealers, to keep such accounts including records of manufacture, sales, purchases or transfers in such form and in such manner as he may, subject to rules made under this Act, direct.

(4) If the Commissioner considers that any class of dealers are not in a position to maintain accounts in accordance with the provisions of sub-section (1), he may, for reasons to be recorded in writing, exempt such class of dealers from the operation of the provisions of the said sub-section.