(1) Every VAT dealer shall keep and maintain a true and correct account of his business transactions preferably in English, Hindi or any other languages, which can be readable to the Prescribed Authorities.

(2) The following records in particular shall be maintained:

(a) A VAT monthly account specifying total Input Tax (including Entry Tax), and net Input Tax payable shall be maintained in Form JVAT 500; and

(b) A VAT monthly account specifying total Output Tax and net Output Tax payable shall be maintained in Form JVAT 501; or

(c) Purchase records, showing details of all purchases on which tax has been charged and all purchases made without charge of tax. Original tax invoices for purchases on which tax has been charged, and invoices for purchases made without charge of VAT shall all be retained in date order; and

(d) Sales records showing separately all sales made at each tax rate, branch transfer / transactions otherwise than by way of sales and exempt sales. Copies of tax Invoices related to taxable sales and invoices related to exempt sales shall all be retained in date and numerical order.

(e) Credit and debit notes issued and received shall all be retained in date and numerical order.

(f) Record of all Export of goods together with copies of customs clearance certificates, invoices issued to the foreign purchasers, transport documentation in the case of Export of goods under sub-section 3 of Section 5 of C.S.T. Act 1956, Form H prescribed under the said Act, orders or contracts for or with the foreign purchaser, and evidence of payment by bank transfer or by a letter of credit payable by a bank.

(g) Record of inter-State sales and inter-State transfer supported by "C Forms", "F Forms" and stock transfer invoices / vouchers etc.

(h) Records of Intra-State Stock Transfers/Transfer for sale by the Agents, on behalf of the Principal, along with such contracts for appointment of Agents, if any.

(i) Cash records maintained by retailers namely cash books, petty cash vouchers, and other account records including copy receipts or cash register machine rolls detailing the daily takings.

(j) Records of Entry Tax payment.

(k) Records of tax collection at source and tax deduction at source.

(l) Records of details of availment tax deferment.

(m) Records of adjustment of VAT credit against liabilities under CST Act.

(n) Records of calculation of Purchase Tax liability.

(o) Computer/electronic records, where available.

(p) Details of input tax calculations where the VAT dealer is making both taxable and exempt sales.

(q) Documents, records, and claim Forms for all transitional relief claims of tax credit for sales tax and for claims for VAT credit on first registration for VAT.

(r) Stock records showing stock receipts and deliveries and any manufacturing records.

(s) Order records, delivery notes etc.

(t) Annual accounts including trading, profit and loss accounts, and the balance sheet thereof.

(u) Bank records, including statements, chequebook counterfoils and pay-in-slips.

(3) All records specified in this rule shall be retained and made available for inspections / audit / verifications for a period of five years, after the end of the year.

(4) Every VAT dealer who keeps and maintains the accounts in a language other than English shall adopt international numerals in the maintenance of such accounts.

(5) A VAT dealer making sales predominantly to non-VAT dealers and consumers who does not separately record every sale, shall maintain a daily record of gross receipts at each tax rate including exempt sales.

(6) Every dealer, being a manufacturer shall, in addition to the accounts and register require to be maintained under this rule, shall also maintain month wise, separate accounts in respect of -

(i) Quantity of stocks, receipts, issue and closing stocks of different inputs received;

(ii) Quantity of opening stock, production, sales or dispatches and closing stock of different finished goods.

(7) Every dealer claiming input tax credit on account of capital goods shall maintain a Register of such goods containing the following particulars:

(i) Location of the capital goods;

(ii) Date of purchase of the capital goods and such particulars regarding the purchase as the persons or dealers from whom such goods are purchased, details of bill or invoice relating to such capital goods;

(iii) Quantity of the capital goods;

(iv) Cost of purchase of the capital goods.

(8) Copy of the customs clearance certificates.

(9) Every dealer or person required by sub-section (1) of Section 63, whose Gross Turnover in a year exceeds Rs. 60 Lakhs, shall get his Accounts audited by an "Accountant" or by a "Tax Practitioner", which shall contain the audited Accounts in Form of a "Statement of Particulars" along with a Certificate in Form JVAT 409, on behalf of such persons, conducting such Audit of accounts, stating therein the genuineness and correctness of the Accounts audited thereof.

Explanation - Except the Registers and Records mentioned in sub-rule (1) and (2) of this Rule, where a manufacturer or other VAT dealer registered under Central Excise Act 1944 (Act 1 of 1944) or Rules made thereunder, and is obliged to maintain Registers or records for the purposes of that Act, shall be deemed to have been kept under this Act also, provided it also contains the particulars mentioned in this rule.