(1) Every registered dealer making a taxable sale to another registered dealer shall provide that purchaser, at the time of sale, with a tax invoice containing such particulars in such manner as may be prescribed and retain a copy thereof :

Provided that -

(i) a tax invoice shall not be issued by a registered dealer to a retailer registered under this Act who is paying turnover tax under section 16; and

(ii) not more than one tax invoice shall be issued for any taxable sale.

(2) Except when tax invoice is issued under sub-section (1), if a registered dealer sells any goods exceeding such amount in value as may be prescribed, in any single transaction to any person, he shall issue to the purchaser a retail invoice containing such particulars in such manner as may be prescribed and retain a copy thereof.

(3) Tax invoice shall have both original and counterfoil of which the original shall be issued to the purchaser or the person taking delivery of the goods, as the case may be, and the counterfoil shall be retained by the selling dealer.

(4) Retail invoice shall have original and counterfoil of which the original shall be issued to the purchaser and the counterfoil shall be retained by the selling dealer.

(5) Every dealer as referred to in sub-section (1) shall preserve the books of account including tax invoice and retail invoice until the expiry of five years after the end of the year to which they relate or for such further period as may be prescribed, or until the assessment reaches its finality, whichever is later :

Provided that where such dealer is a party to any appeal or revision under this Act, the person shall retain , until the appeal or revision is finally disposed of , every record and accounts that pertain to the subject matter of the appeal or revision.

(6) If a registered dealer fails, without any reasonable cause, to issue tax invoice or retail invoice, as the case may be, in accordance with the provisions of subsection (1) or sub-section (2), the Commissioner may, after giving an opportunity of being heard, direct the dealer to pay, by way of penalty, a sum of rupees one thousand or twice the amount of tax due in that invoice, whichever is higher, for each occasion of such failure.

(7) Where any tax invoice or retail invoice issued is found to be incorrect or false, the selling dealer shall be liable to pay the tax as passed on to the purchaser on the strength of such invoice with a penalty equal to twice the amount of such tax.

(8) where a purchasing dealer is found to have arranged a fake or forged tax invoice or retail invoice he shall be liable to pay penalty equal to twice the amount of tax charged in such Invoice,