(1) If, in respect of any particular year, the gross turnover of a dealer exceeds rupees forty lakh or any other amount as the Commissioner may specify by notification in the Commercial Tax Gazette, then such dealer shall get his accounts in respect of such year audited by an Accountant within a period of six months from the date of expiry of that year and obtain within that period a report of such audit in the prescribed form containing the prescribed particulars duly signed and verified by such Accountant and, in every such case, a true copy of such report accompanied by a statement showing the closing stock in trade held at the end of the year, in the prescribed manner, shall be furnished by such dealer to the Commissioner by the end of the month following the expiry of the said period of six months.

Explanation.- The expression "Accountant " means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949) or a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 0f 1959) and includes a person who is entitled to be appointed to act as an auditor of companies under sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956) .

Provided that the audit report under this sub-section relating to the first year of the commencement of this Act, may be furnished within three months from the date appointed under sub-section (2) of section 1 of the Orissa Value Added Tax (Amendment) Act, 2008 '

Provided further that the Government may, by notification and subject to such conditions and restrictions as may be specified in that notification, exempt any class or dealers from the liability to get their accounts audited under the sub-section.

(1-a) Omitted w.e.f. 01-10-2015

(2) Where a dealer liable to get his account audited under sub-section (1) fails to furnish a true copy of the audit report accompanied with a statement showing the closing stock in trade held at the end of the year, in the prescribed manner, the commissioner shall, after giving such dealer a reasonable opportunity of being heard, impose on him a penalty of rupees one hundred per each day of default subject to a maximum limit of rupees ten thousand: