Keeping of accounts and records

Rule 33. (1) Every registered dealer and every person liable to be registered under the Act shall keep and maintain a true and correct account of his daily transactions showing the goods produced, manufactured, bought and sold by him and the value thereof separately together with invoices and bills.

(2) Every such dealer or person shall keep separate purchase, sale and disposal accounts in respect of each commodity, whether taxable or not, dealt with by him.

(3) Every dealer other than a dealer opting to pay tax by way of composition under section 15, shall maintain a VAT account containing details of input an output tax, together with credit and debit notes issued during any tax period.

(4) Every such dealer or person shall keep current books of accounts at the place or places of business entered on his certificate of registration, and every purchase and sale shall be brought to account as soon as the purchase or sale is made.

(5) The registers, accounts and documents maintained shall be sequentially numbered, and where the registers and other documents are maintained by means of a computer or any other similar mechanical device, the dealer shall maintain copies in paper of such registers and other documents printed on a monthly basis.

(6) Any entry in such registers, accounts and documents shall not be erased, effaced or overwritten, and all incorrect entries shall be scored out under attestation and correct entry recorded and where the registers, accounts and documents are maintained by means of a computer or any other similar mechanical device, the dealer shall also maintain a record of correction or change of any entry.

(7) For the purpose of sub-rule (4), current books of accounts shall include computer hardware and software used in connection with business activities of the dealer or person.

(8) The accounts maintained by dealers together with all invoices, bills, declarations, way bills and delivery notes relating to stocks, deliveries, purchases, output and sales shall be preserved by them for the time specified under section 32 or for any further period as may be notified by the Commissioner and shall be kept at the place of business, mentioned in the registration certificate.

(9) Every commission agent, broker, del credere agent, auctioneer or any other mercantile agent shall maintain accounts showing.-

(a) particulars of authorization received by him from each principal to purchase or sell goods on behalf of each principal separately;

(b) particulars of goods purchased or goods received for sale on behalf of each principal each day;

(c)    particulars of purchases or sales effected on behalf of each principal each day;

(d) details of accounts furnished to each principal each day; and

(e) the tax paid on purchases or on sales effected on behalf of each principal and the challan number and date of remittance of the tax into the Government Treasury.

(10) Every purchasing agent shall keep particulars of the names and addresses of the dealers or persons from whom he purchased the goods, and every selling agent shall keep the particulars of the names and addresses of the dealers or persons to whom he sold the goods.

(11) Every wholesale dealer, importer, exporter and manufacturer shall maintain monthly stock accounts in respect of each commodity dealt with by him, and such stock account shall contain particulars of purchases or receipts, sales, deliveries and balance of stock.

(12) Every manufacturer of goods shall maintain monthly production of accounts, showing quantitative details of the various raw materials used in the manufacture and the quantitative details of the goods so manufactured.

(13) Every dealer who is required to maintain stock accounts shall maintain subsidiary accounts for each godown if there is more than one godown for keeping his stocks.

(14) Every dealer or person executing works contract shall keep separate accounts showing.-

(a) the particulars of the names and address of the persons for whom and on whose behalf he carried on the execution of works contact in respect of each works contract;

(b) the particulars of goods procured by way of purchase or otherwise for the execution of works contact;

(c) the particulars of goods to be utilized in execution of each works contract; and

(d) the details of payment received in respect of each works contract.

(15) Every dealer or person engaged in the transfer of a right to use any goods shall keep.-

(a) particulars of the names and addresses of the persons to whom he delivered the goods for use;

(b)details of amounts received in respect of each transaction; and

(c) monthly stock accounts in respect of each commodity dealt with by him and such stock account shall contain particulars of purchases or receipts, deliveries and balance of stock.

(16) Every dealer claiming exemption on his turnover under sub-section (2) of section 8 shall retain for every tax period a declaration in Form VAT 140 obtained from the registered dealer who sold the taxable goods relating to such turnover on his behalf and the selling agent shall issue the declaration to his principal within ten days from the end of the month in which such goods were sold.

(17) Every dealer claiming deduction of input tax on goods purchased on his behalf by any other registered dealer shall retain for every tax period a declaration in Form VAT 145 obtained from the registered dealer who purchased the taxable goods on his behalf and also the tax invoices in original relating to such purchases, and the purchasing agent shall issue the declaration and furnish the tax invoices to his principal within ten days from the end of the month in which such goods were purchased.

(18) Any officer authorized by the Commissioner to make an assessment under section 38 or to exercise powers under sub-section (1) of section 52, shall exercise powers under sub-section (2) of section 31.