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CHAPTER
– VI
MAINTENANCE
OF BOOKS OF ACCOUNT
29.
Records to be maintained by VAT
dealer
1) Every VAT dealer shall keep and maintain a true
and correct account of his business transactions in any of the languages
specified in the Eighth Schedule to the Constitution or in the English language.
2) The VAT dealer shall maintain wherever
applicable, the following records, namely;-
a) a VAT monthly account specifying total output
tax, total input tax and net tax payable or the tax credit due for refund or
carry forward.
b) purchase records, showing details of all
purchases on which tax has been charged and eligible for input tax credit,
purchases with VAT charged but not eligible for input tax credit under
sub-rule(2) of Rule 20 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.
c) sales records showing separately all sales made
liable to different tax rates, Zero-rated 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.
d) credit notes and debit notes issued and
received shall all be retained in date and numerical order.
e) record of all zero-rated 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, certificates
in Form H prescribed under the Central Sales Tax Act, 1956 orders or contracts
for or with the foreign purchaser, and evidence of payment by bank transfer
through a bank or by a letter of credit payable by a bank.
f) record of inter-State sales and
inter-State transfer supported by C forms, F forms prescribed under the Central
Sales Tax Act, 1956, Waybills and stock transfer vouchers.
g) 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.
h) records of entry tax payment:
i) records of tax collection at source and
tax deduction at source.
j) records of details of availment of
tax holiday / deferment.
k) records of adjustment of VAT credit against
liabilities under the Central Sales Tax Act, 1956.
l) records of calculation of purchase point
tax liability under sub-section (4) of Section 4.
m) computer records, where available.
n) details of input tax calculations where the VAT
dealer is making both taxable and exempt sales.
o) Documents, records, and claim forms for all
transitional relief claims of tax credit for sales tax and claims for VAT credit
on first registration for VAT.
p) stock records and any manufacturing records.
q) Order records, delivery notes and way bills
r) appointment and job books.
s) annual accounts including trading, profit
and loss accounts, the balance sheet.
t) Bank records, including statements,
cheque book counter foils and pay-in-slips.
u) copy of customs clearance certificates.
3) All records specified in sub-rule 2 of this
Rule shall be retained for a period of six years and made available for
inspection by the authority prescribed.
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 and who does not separately record every sale,
shall maintain a daily record of gross receipts for sales taxable at each tax
rate and exempt sales.
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