MAINTENANCE OF ACCOUNTS

MAINTENANCE OF ACCOUNTS

4.3       What happens at Check post?

1. At every check-post or barrier or at any other place, when so required by any specified officer, the owner or person incharge of the goods shall stop.
2. The driver or any other person incharge of the goods carrier shall stop the goods carrier, and keep it stationary, as long as may reasonably be necessary.
3. Person incharge shall produce the declaration in Form VAT-D3.

However where person incharge of the goods bound for any place outside the State passes through the State, he shall give a declaration in Form VAT-D4 (in duplicate), to the officer incharge of the check-post and obtain from such officer a copy thereof duly verified, and shall deliver within 24 hours (or such other time as may be prescribed) the said copy to the officer incharge of the check-post at the point of his exit from the State.

4. Officer incharge of the check-post or barrier, may examine the goods-carried by him or in the goods carrier, by breaking open the package or packages.
5. Officer incharge of the check-post or barrier may also inspect all records relating to the goods carried which are in the possession of such owner or person incharge of the goods or the driver or other person incharge of the goods carrier.
6. If the officer incharge of the check-post or barrier or other specified officer has reasons to suspect that

• the goods under transport are not covered by proper and genuine documents; or
• the person transporting the goods is attempting to evade payment of tax

then such officer may for reasons to be recorded in writing, and after hearing the said person, order the unloading and detention of the goods.

7. Goods detained: Where the goods are unloaded and detained the Officer in charge shall prepare and issue to the a receipt specifying the description and quantity of the goods detained and their value, as ascertained from the bills (section 31(2)) or worked out keeping in view the prevailing market rates in respect of such goods.

Where any goods are detained, a report shall be made immediately and in any case within 24 hours of the detention of the goods by the officer detaining the goods to the officer incharge of the district where the goods have been detained seeking the latter's permission for the detention of the goods for a period exceeding 24 hours as and when so required and if no intimation to the contrary is received from the latter, the former may assume that his proposal has been accepted.

8. Goods in safe Custody: Officer detaining the goods may, if he deems fit, having regard to the nature of the goods and the goods carrier, and other relevant matters, hand over the goods for safe custody to any person, who shall, subject to such restrictions and conditions as may be prescribed. The person to whom the goods are handed over for safe custody shall not hand over them to anyone except with the written permission of the officer detaining the goods.
9. Goods released: However such officer shall allow the goods to be transported only when owner or his representative or the driver or other person incharge furnishes a security, or if the owner of the goods is a dealer registered, furnishes a personal bond, for the maximum amount which may be chargeable from him section 31(8). Security can be in the following forms:
   (a) cash deposit in the Government Treasury under head "0040-Tax on Sales, Trade etc."
   (b) post office saving bank account, the account being pledged to the Commissioner or any officer authorised by him in writing in this behalf;
   (c) bank guarantee from a Scheduled Bank agreeing to pay to the State Government on demand the amount of security;
   (d) personal bond with solvent surety /sureties for the amount of security to the satisfaction of the authority before whom it is required to be furnished under these rules, which shall be in Form VAT-B2 on a non-judicial; paper of the appropriate value; and
   (e) such saving certificates or bonds or fixed deposit receipts as are issued by the Government of India, the State Government, or Reserve Bank of India or Scheduled Bank, from time to time, to be pledged to the Commissioner or any other officer authorised by him in this behalf.
   The Officer accepting the security or surety bond shall pass an order in writing while releasing the goods, after giving cash receipt in Form VAT-G4 where security is furnished by deposit of cash or an acknowledgement where security is furnished in any other form.
10. Statement to be recorded: The officer detaining the goods shall record the statement, if any, given by the owner of the goods or his representative or the driver or other person incharge of the goods carrier.
11. Penalties If, after the inquiry including an inquiry into the nature of the transaction which occasioned the movement of goods, such officer finds that there has been an attempt to evade the tax, he shall, by order, impose on the owner of the goods and in case the owner is not forthcoming or his identity is not disclosed by the person incharge of the goods or the driver or person incharge of the goods carrier, in which the goods are being carried, on the person incharge of the goods or the goods carrier or the driver, deeming such person to be the owner of the goods, a penalty computed by multiplying the value of the goods with three times the rate of tax applicable on their sale subject to a maximum of thirty percent of the value of the goods, and direct him to deposit, in addition to the penalty, advance tax computed by multiplying the value of the goods with the rate of tax applicable on their sale which shall be adjustable with the liability to tax incurred on the purchase or sale of such goods or the sale of goods manufactured therefrom, as the case may be, and in case it finds otherwise, it shall order the release of the goods.

However where the offence relates to only an attempt to evade tax by underpricing the goods, the penalty shall be computed by multiplying the difference between their market price and the value shown in the documents accompanying their movement with three times the rate of tax applicable on their sale.

No penalty shall be imposed and no advance tax shall be required to be deposited unless the owner of the goods or his representative or person incharge of the goods or the goods carrier or the driver, as the case may be, has been given a reasonable opportunity of being heard.

12. Penalty not paid: Public auction: In the event of the owner of the goods not paying the penalty imposed and the advance tax payable section 31(8) within 30 days from the date of the supply of the copy of the order passed to him, the goods detained shall be liable to be sold by public auction, after following the procedure as laid down below -
    (a) the officer shall cause to be published on the notice board of his office a list of the goods detained and intended for sale with a notice under his signatures specifying the place where, and the day and hour at which, the detained goods are to be sold and display copies of such lists and notice at more than one public places near the Check Post or barrier or other place where the goods were detained. Copy of the list and notice shall also be displayed in the office of the Officer In charge of the district having jurisdiction over the area where the check post or barrier or other place where the goods were detained is situated. Normally, a notice of not less than ten days shall be given before the auction is conducted.
    (b) Intending bidders shall deposit as earnest money a sum equal to ten per centum of estimated value of goods.
    (c) At the specified day and time, the goods shall be put up in one or more lots, as the officer conducting the auction/sale may consider advisable, and shall be knocked down in favour of the highest bidder subject to confirmation of the sale by the Officer in charge of the district concerned if the officer conducting the auction is an officer subordinate to the officer in charge of the district.
    (d) The auction purchaser shall pay the sale value of the goods in cash immediately after the sale and he will not be permitted to carry away any part of the goods until he has paid for the same in full and until the sale has been confirmed by the appropriate authority mentioned in clause (c). If the purchaser fails to pay the purchase money, the goods shall be resold by auction in the same manner as provided in clauses (a), (b) and (c) and earnest money deposited by the defaulting bidder shall be forfeited to the State Government. The earnest money deposited by the unsuccessful bidders shall be refunded to them immediately after the auction is over.
    (e) If any order directing detention is reversed on appeal the goods so detained, if they have not been sold before such reversal comes to the knowledge of the officer conducting sale, shall be released, or if they have been sold, the proceeds thereof shall be paid to the owner of the goods;
    (f) No goods shall be sold by auction under this rule except with the prior approval of the officer in charge of the district.
    Note: Where any goods required to be disposed of by public auction are of perishable nature or subject to speedy and natural decay or are such as may, if held, lose their value or when the expenses of keeping them are likely to exceed their value, then such goods may, with the approval of the officer incharge of the district, be sold immediately to the highest of at least three offerors, dealing in like goods, making the offers on invitation.
    Note: If the sale proceeds of any goods sold or the amount obtained on the disposal of any goods otherwise than by way of sale under the provisions hereinbefore contained exceeds the penalty imposed and advance tax payable in respect of such goods, such excess amount after deducting the expenses, and incidental charges shall be returned by the officer who conducted the sale or otherwise disposed of the goods, to the owner of the goods.

Goods and service tax under GST various stringent measures can be taken if any mistakes or foul intentions come to notice.

13. Right & Duties: No driver or person incharge of a goods carrier or any person incharge of a place of loading or unloading of goods shall accept any consignment of goods for transport or give delivery of any consignment of such goods, other than personal luggage or goods for personal consumption;

No dealer or any person including a carrier of goods acting on behalf of a dealer, shall take delivery of, or transport from any station of transport of goods, bus stand or any other station or place, of loading or unloading of goods, airport or any other place, whether of similar nature or otherwise, any consignment of goods referred to above.

Follow Us on

    

MAINTENANCE OF ACCOUNTS

MAINTENANCE OF ACCOUNTS

4.1       Power of State Government to establishment check-post and barriers.

State Government may, by notification in the Official Gazette direct

• the establishment of a check-post; or
• the erection of a barrier; or
• both,

at such place or places as may be notified by it.

4.2       Inspection of Goods in transit.

Person incharge of the goods shall carry with him

• A goods carrier record, a trip sheet or log book,; and
• Sale invoice or tax invoice or delivery note, ; and
• A declaration in Form VAT-D3 duly filled in and signed by the prescribed persons.

Declaration in Form VAT-D3

The declaration used by a dealer for dispatch of goods by him:

• from any place in the State to any other place in or outside the State shall be in Form VAT-D3 (Outward); and
• for bringing or receiving goods from outside the State to any place in the State shall be in Form VAT-D3 (Inward).

IGST is to exercise better control under GST various inpections and checks are carried out at intermediate stages.

Procedural aspects of Form VAT-D3 are as follows:

• The declaration forms shall be printed under the authority of the State Government and shall be machine numbered or bear a printed serial number. These shall be available with issuing agencies including the offices of the Excise and Taxation Department, Haryana, for issue to dealers against payment at such price, which the State Government may fix from time to time.
• The Commissioner may, with the approval of the Government, issue, from time to time, detailed instructions for issue of blank declaration forms to the dealers, their use, return after use, verification and disposal, surrender of unused forms to the assessing authorities and maintenance of record in relation thereto. These instructions shall be binding on the issuing agencies, assessing authorities, officials and the dealers.
• The State Government may, by notification in the Official Gazette, declare certain serial number(s), series, design or colour of declaration forms as obsolete and invalid. All the dealers and issuing agencies shall, on or after such date surrender all such forms and get in exchange such new forms as may be substituted for the forms declared obsolete and invalid.
• In case a declaration bears a period of validity, then it shall not be considered invalid for reason alone of being in use either before or after such period of validity if any date filled in the original foil of such declaration relating to its use falls between the period of validity.
• Declaration shall be in 3 parts. Each part shall be filled in and signed by the consignor, the consignee and the transporter.
• Any movement of goods valued at Rs. 10,000 or more in a single transaction relating to a dealer whether as seller, purchaser, consignor or consignee, shall be accompanied by a declaration in original. The duplicate part of the used declaration in Form VAT-D3 (Outward) and the original of the used declaration in Form VAT-D3 (Inward) shall be furnished by the user-dealer to the assessing authority along with the tax returns filed by him unless other arrangement for receipt of the used declarations is made in the instructions. The used declaration forms shall be arranged in the order of date of receipt from the issuing agency and then in the order of their continuous serial number before their return to the assessing authority.
• Declaration in Form VAT-D3 (Outward) shall be so filled in by hand that the reverse of the original and the obverse of the duplicate and the counterfoil of the declaration form bear the carbon imprint of the original. The consignee dealer shall furnish the original with his tax return to the assessing authority.
• If a dealer fails to furnish the account of declaration forms obtained by him or fails to return the used declaration forms or fails to surrender the blank declaration forms when so required by the assessing authority, then he shall be liable to be assessed to tax to the best of its judgement by such authority. Such authority may presume that all the declaration forms as aforesaid have been used by him for purchase and sale of goods and for this purpose it may estimate the value of goods purchased or sold per declaration form at an amount consistent with the facts and circumstances of the case.
• Dealer shall be responsible for their proper custody and use of declaration forms issued to them. If a declaration form is lost while in the custody of the dealer to whom it was issued or in the custody of the dealer to whom it was sent, or in transit, the former shall report the loss to the assessing authority and shall furnish an indemnity bond in Form VAT-B3 to the assessing authority for such sum as the said authority may, having regard to the circumstances of the case, determine: Provided that where more than one declaration forms are lost, the dealer may furnish one such indemnity bond to cover all the lost declaration forms.

Follow Us on

    

MAINTENANCE OF ACCOUNTS

MAINTENANCE OF ACCOUNTS

3. SURVEY

3.1       Survey of place of Business

A taxing authority may, for the purpose of identifying an unregistered dealer liable to tax or estimating extent of business of any dealer or making verification of documents furnished to or produced before it or any other authority under this Act, or for the purpose of collecting any data or conducting a market survey which may be useful for tax administration under this Act, or for carrying out other purposes of this Act, visit -

(a) any place of business within the area of its jurisdiction; or

(b) any place of business of a dealer to whom such authority, granted or, as the case may be, is competent to grant, a certificate of registration under this Act, whether such place be the principal place or not of such business, and require any proprietor, employee or any other person who may at that time and place be attending in any manner or helping in the carrying on of such business and such person can:-

• inspect such books of account or other documents as he may require and which may be available at such place;
• check or verify the stock of goods, sale proceeds of goods, cash or thing which may be found therein; and
• furnish such information as it may require as to any matter which may be relevant to any proceeding, data collection or market survey under this Act.

SGST in order to the loopholes in the existing system, GST provisions are laid down with a lot of precision.

Explanation- For the purposes of section 30(1), a place where a business is carried on, shall also include any other place, whether any business is carried on therein or not, in which the person carrying on the business states that any of his books of account or other documents or any part of his stock of goods or anything relating to his business are kept.

Note: A taxing authority visiting any place of business under sub-section (1) may do so only during the hours at which such place is open for the conduct of business and, in the case of any other place, only after sunrise and before sunset.

3.2       Proof of visit by Taxing Authority

A taxing authority acting under this section may:-

• if it so deems necessary, place marks of identification on the books of account or other documents inspected by it and make or cause to be made extracts or copies therefrom;
• make an inventory of any stock of goods, sale proceeds of goods, cash or thing checked or verified by it; and
• record the statement of any person which may be relevant to any proceeding under this Act.

3.3       No authority to remove goods

Taxing authority shall, on no account, remove or cause to be removed from the place wherein it has entered, any books of account or other documents or any cash, stock of goods or other thing except for the purpose of making extracts or copies from the books of account or other documents.

3.4       Excessive expenditure by dealer

Where, having regard to the nature and scale of expenditure incurred by a dealer for establishing or running his business which may be relevant for assessing the extent of the business, the taxing authority is of the opinion that it is necessary or expedient so to do, it may require the dealer to furnish such information as he may require as to any matter which may be relevant to any proceeding under this Act and may have the statements of the assessee or any other person recorded and any such statement may be used in evidence in any proceeding under this Act.

Follow Us on

    

MAINTENANCE OF ACCOUNTS

MAINTENANCE OF ACCOUNTS

2. PRODUCTION AND INSPECTION OF BOOKS DOCUMENTS AND ACCOUNTS

2.1       Production of Books of Accounts

 A taxing authority may, for the purposes of this Act, require any dealer to produce before him any book, document or account relating to his business and may inspect, examine and copy the same and make such enquiries from such dealer relating to his business, as may be necessary.

2.2       Maintenance of Accounts

 Every registered dealer shall -

(a) maintain day to day accounts of his business;

(b) maintain a list of his account books, display it along with his registration certificate and furnish a copy of such list to the assessing authority;

(c) produce, if so required, account books of his business before the assessing authority for authentication in the manner given below:-

• A registered dealer when required by the assessing authority shall produce before it any book, document or account relating to his business for the purpose of authentication.
• The Assessing Authority may, as far as possible with prior notice, authenticate the books of accounts of the dealer by visiting his place of business where the books, documents or accounts are kept.
• The Assessing Authority shall append his signature along with his seal at one or more places in each of the books, documents or accounts and record a certificate in the following form at the opening page thereof:

"Certified that this book/document/account contains pages _____________ to ___________________and I have put my signatures along with the official seal at page Nos. _____________ and ______________.

(Signature of assessing authority)

Name in CAPITALS ________________________________

District _______________________________________

Date _____________________________

• The assessing authority shall keep a regular record of such authentication in the file of each dealer for utilisation at the time of inspection of his accounts or stocks.
• The assessing authority shall make a note of such authentication on the list, maintained under section 29 by the dealer.

(d) retain his account books at the place of his business, unless removed therefrom by an official for inspection, by any official agency or by auditor, or for any other reason which may be considered to be satisfactory by the assessing authority;

(e) preserve his account books for a period of 8 years after the close of the year to which such books relate and where some proceedings under this Act are pending, till the completion of such proceedings.

In continuation of the above discussion, I am of a confirmed view that GST in Indiatransperancy & avoiding complexities are the essence of GST.

2.3       Seizure of books and accounts

 If any officer under section 29 (1) has reasonable grounds for believing that any dealer is trying to evade liability to tax or other dues under this Act, and that anything necessary for the purpose of an investigation into his liability may be found in any book, account, register or document, the officer may seize such book, account, register or document as may be necessary. The officer seizing the book, account, register or document shall forthwith grant a receipt for the same and shall:-

(a) in the case of a book, account, register or document which was being used at the time of seizing, within a period of 30 days from the date of seizure; and

(b) in any other case i.e., which was not used at the time of seizing, within a period of 180 days from the date of seizure,

return it to the dealer or the person from whose custody it was seized, after examination or after having such copies or extracts taken therefrom as may be considered necessary; provided the dealer or the aforesaid person gives a receipt in writing for the book, account, register or document returned to him. The officer may, before returning the book, account, register or document, affix its signatures and its official seal at one or more places thereon, and in such case the dealer or the aforesaid person will be required to mention in the receipt given by him the number of places where the signatures and seal of such officer have been affixed on each book, account, register or document.

However, the seized book, account, register or document may be retained for a longer period if so required.

Also, if the seized book, account, register or document is retained by any taxing authority other than the Commissioner for more than the period specified above, as the case may be (30 days or 180 days), the reasons for doing so shall be recorded in writing and the approval of the Commissioner shall be obtained by the said authority before the specified period or the extended period, as the case may be, expires,

However, if any proceedings taken up as a result of examination of seized material shall be concluded before the expiry of 1 year from the date of the seizure except that the proceedings may, with written permission of the Commissioner, continue for 1 more year.

2.4       Public Auction

Goods which are detained under section 31(6) and which are not released owing to failure to furnish security or to pay the penalty imposed under section 31 (8) within the time allowed shall be sold in public auction after following the procedure as laid down below –

(a) the officer shall cause to be published on the notice board of his office a list of the goods detained and intended for sale with a notice under his signatures specifying the place where, and the day and hour at which, the detained goods are to be sold and display copies of such lists and notice at more than one public places near the Check Post or barrier or other place where the goods were detained. Copy of the list and notice shall also be displayed in the office of the Officer In charge of the district having jurisdiction over the area where the check post or barrier or other place where the goods were detained is situated. Normally, a notice of not less than ten days shall be given before the auction is conducted.

(b) Intending bidders shall deposit as earnest money a sum equal to ten per centum of estimated value of goods.

(c) At the specified day and time, the goods shall be put up in one or more lots, as the officer conducting the auction/sale may consider advisable, and shall be knocked down in favour of the highest bidder subject to confirmation of the sale by the Officer in charge of the district concerned if the officer conducting the auction is an officer subordinate to the officer in charge of the district.

(d) The auction purchaser shall pay the sale value of the goods in cash immediately after the sale and he will not be permitted to carry away any part of the goods until he has paid for the same in full and until the sale has been confirmed by the appropriate authority. If the purchaser fails to pay the purchase money, the goods shall be resold by auction in the same manner as mentioned in points (a), (b) and (c) above and earnest money deposited by the defaulting bidder shall be forfeited to the State Government. The earnest money deposited by the unsuccessful bidders shall be refunded to them immediately after the auction is over.

(e) If any order directing detention is reversed on appeal the goods so detained, if they have not been sold before such reversal comes to the knowledge of the officer conducting sale, shall be released, or if they have been sold, the proceeds thereof shall be paid to the owner of the goods;

(f) No goods shall be sold by auction under this rule except with the prior approval of the officer in charge of the district.

(g) Where any goods required to be disposed of by public auction are of perishable nature or subject to speedy and natural decay or are such as may, if held, lose their value or when the expenses of keeping them are likely to exceed their value, then such goods may, with the approval of the officer incharge of the district, be sold immediately to the highest of at least three offerors, dealing in like goods, making the offers on invitation.

2.5       Miscellaneous            
(i) The provisions of section 29 (2) shall apply mutatis mutandis to every such dealer who is liable to furnish returns under section 14(2).

(ii) A taxing authority, assisted by such persons as he may consider necessary, may enter and search any office, shop, godown or any other place of business of the dealer or any building, dwelling house or place, or means of transport, goods carrier or vehicle where such officer, has reasons to believe that the dealer keeps, or is for the time being keeping, any book, account, register, document, goods or anything relating to his business.

Provided that before entering and searching any premises the aforesaid officer shall record in writing the reasons for making such entry and search and shall obtain the sanction of the Commissioner or of such other officer not below the rank of Deputy Excise and Taxation Commissioner as the Commissioner may, for this purpose, authorise in writing:

However, no entry for search in a dwelling house shall be made -

• after sunset and before sunrise;
• by an officer below the rank of an Excise and Taxation Officer;
• without obtaining the sanction of the Deputy Commissioner or Sub-Divisional Officer (Civil) within whose jurisdiction such house is situated.

(iii)  A taxing authority, can use the power in the following ways:-

• where any person in or about such premises is reasonably suspected of concealing about his person anything for which search should be made, to search such person, and, if such person is a woman, the search shall be made by another woman, with strict regard to decency;
• to open and search any box, till or receptacle in which any book, account, register, document, sale proceeds, goods or anything which is relevant to any proceeding under this Act may be contained;
• to make a note or inventory of anything including cash and goods found as a result of such search;
• to record the statement of a dealer or any person connected with his business including a bailee or a transporter, and such statement may, after giving the affected person a reasonable opportunity of being heard, be used for the purpose of determining his liability to tax;

(iv) Where any officer finds any taxable goods in any office, shop, godown or any other place of business or any building or place, or goods carrier or vehicle of, or which for the time being is under the control of, a dealer on whom the provisions of section 14 (2) apply but not accounted for by him or the person incharge of the goods carrier or vehicle in his books, accounts, registers and other documents, the officer may, after giving such dealer a reasonable opportunity of being heard, impose on him a penalty computed by multiplying the value of the goods with 3 times the rate of tax applicable on sale of goods subject to a maximum of 30 % of the value of the goods, and direct him to account for the goods in his books of account,

However, where the goods accounted for are underpriced, the penalty shall be computed by multiplying the difference between the market price and the price at which the goods have been accounted for with three times the rate of tax applicable on sale of goods.

CGST in GST the penalty provisions have been added to avoid tax evasion.

Follow Us on

    

MAINTENANCE OF ACCOUNTS

MAINTENANCE OF ACCOUNTS

1. MAINTENANCE OF ACCOUNTS

1.1         Nature of accounts to be maintained by dealers and assesses

 (i) Every dealer shall keep separate account of sales and purchases made in the State,  in the course of inter -state trade or commerce, in the course of import into India and in the course of export out of India.
(ii) Account of sales and purchases made in the State shall be kept in respect of different classes of goods liable to tax at different rates of tax separately. The dealer shall maintain a 'Day Book' showing the following particulars of sales and purchases made every day, namely:

Sale side/book

	Date	Source	Invoices issued/ Entry No.	Value of goods sold in the State				Output tax
				Exempt	@ %	@ %	Total
	(a)	(b)	(c)	(d)	(e)	(f)	(g)	(h)
Invoiced sales
Petty Sale Book

Note 1:- Value of goods sold shall not include tax.
Note 2:- Columns (d), (e) and (f), classify the goods according to different rates of tax applicable. Add more columns, if necessary.

Purchase side/book

	Date	Source	Value of goods purchased in the State				Tax paid
			Exempt	@ %	@ %	Total
	(a)	(b)	(c)	(d)	(e)	(f)	(g)
On tax invoices
Other purchases

Note1:- Value of goods purchased on tax invoices shall not include tax.

Note 2:- In columns (d), (e) and (f), classify the goods according to different rates of tax applicable. Add more columns, if necessary.

Goods and service tax the more systematic approach of maintaining books of accounts is coming into play because of GST.

1.2       Dealers require to file Annual Commodity Tax return

Every dealer who is required to file annual commodity tax return under rule 16 (3), shall further keep separate account of sale of each goods or class of goods listed in Schedule II appended to these rules where such goods are sold for the first time in the State.

Explanation- 'goods sold for the first time' means sale of goods, which have not been purchased from VAT dealers in the State.

1.3       Other dealers requiring to maintain accounts

 Every commission agent, broker, del-credere agent, auctioneer or any other mercantile agent doing business as a dealer, shall maintain accounts showing:-

(a) particulars of authorisations received by him to purchase or sell goods on behalf of each principal separately;
(b) particulars of goods purchased or of goods received for sale on behalf of each principal each day; and
(c) details of purchases or sales affected on behalf of each principal each day.

1.4       Assessee requiring to deduct tax at source

Every assessee who is required to deduct tax at source from payments made to payee(s) under section 24, shall keep account of the payments made, whether by cash, adjustment, credit to the account, recovery of dues or in any other manner, to the payee(s) in relation to or for the execution of the works contract(s) or the supply of goods, as the case may be. The accounts shall be kept separately in respect of each works contract or the contract for the supply of goods and each contractor or supplier, as the case may be. The assessee shall, when required by the assessing authority to whom he has furnished returns under section 24 (3), produce the accounts before him.

1.5       Compulsory maintenance of accounts

Every dealer liable to furnish returns under section 14 (2) shall keep a true and proper account of his business, and if the assessing authority considers that such account is not sufficiently clear and intelligible to enable him to make a proper check of the returns, he may require such dealer by notice in writing to keep such accounts, as he may, in writing, direct subject to anything that may, with a view to making proper assessment of tax.

1.6       Compulsory issuance of Tax Invoice, Retail / Sale Invoice

Every dealer required to furnish returns under section 14 (2) shall,-

(a) in respect of every sale of goods, effected by him -

(i) to any dealer;

(ii) to any other person on credit;

(iii) to any other person on cash, where the sale price of the goods exceed Rs. 100/- or such other amount not exceeding Rs. 500/-, as may be prescribed, compulsorily, otherwise, on demand by such person, issue to the purchaser, where he is a VAT dealer to whom the goods are sold for resale by him or for use by him in manufacture or processing of goods for sale, a tax invoice, otherwise a retail/other sale invoice.

• In the case of specific or ascertained goods, at the time the contract of sale is made; and
• In the case of unascertained or future goods, at the time of their appropriation to the contract of sale;

However, if the contract of sale requires that the goods be delivered over a period of time, he may issue a delivery note showing the prescribed particulars at the time of dispatch of the goods, every time such dispatch is made, and when the delivery of the goods is complete or a month closes in between, he shall issue a consolidated tax invoice or retail/other sale invoice, as the case may be, showing the prescribed particulars, in respect of the goods sold during the month or part thereof, as the case may be;

(b) maintain account of all sales not falling within the above point;

(c) in respect of every dispatch of goods otherwise than by sale, issue a delivery note at the time of the dispatch showing the prescribed particulars; and

(d) preserve a carbon copy of every invoice or delivery note issued under point (a) or point (c) above for a period of 8 years following the close of the year when the sale was made and where some proceedings under this Act are pending, till the completion of such proceedings.

1.7       Meaning of following terms

Tax Invoice: A tax invoice shall be issued by a VAT dealer when making sale of goods in the State to another VAT dealer for resale thereof or for use in manufacture or processing of goods for sale. A tax invoice shall at least be in triplicate. The original shall be given to the purchaser, the duplicate to the transporter, and the triplicate shall be kept in record. Duplicate and triplicate shall be carbon copies of the original.

Retail / Sale Invoice: A retail sale invoice shall be issued by a VAT dealer, a casual trader, or a lump sum dealer, when making sale of goods in the State to a consumer or to an unregistered dealer. A sale invoice shall be issued for sale of goods in all other circumstances. It shall not be compulsory to issue a sale invoice or a retail sale invoice in respect of a single transaction of sale made in cash not exceeding Rs. 300/- in valuable consideration except when the invoice is demanded by the customer. A retail sale invoice shall be at least in duplicate. The original shall be given to the purchaser and the duplicate - a carbon copy of the original - shall be kept in record.

Delivery Note: A delivery note shall be issued for effecting delivery of goods whether as a result of sale, dispatch on consignment, or for any other reason but when an invoice issued for sale of goods accompanies the movement of goods, it shall not be compulsory to issue a delivery note. Each invoice or a delivery note shall be machine numbered or shall bear a printed serial number in an ascending order. It must clearly bear the for which it is to be used for, like, "Original - Purchaser's copy, "Duplicate - Transporter's copy", "Triplicate - Office Copy".

1.8         Particulars on Tax Invoice, Retail/ Sale Invoice   

TAX INVOICE/RETAIL INVOICE/SALE INVOICE/DELIVERY NOTE
Serial Number:                                               

Date: DD:MM:YY

Time: HH:MM
Note: Time is to be mentioned by stone crusher owners, quarry contractors/lessee s in every case, and by other dealers in case the value of goods exceeds ten thousand rupees.
(i) Full name and address of the selling dealer/consignor with his TIN, if any
(ii) Nature of transaction - whether sale, consignment transfer or job work etc.
(iii) Name and address of the purchaser/ consignee (in case he is a dealer registered under the Act, mention his TIN)
(iv) Description of goods
(v) Quantity of goods
(vi) Value of goods with break-up according to rate of tax applicable (In case of delivery note, approx. value may be given and no break-up is necessary.)
(vii) Tax, where charged separately (Not compulsory when a delivery note is issued or an invoice is issued by a lump sum dealer, an unregistered dealer, or a VAT dealer making sale to a consumer.)
(viii) Vehicle number (Where the goods are carried in a vehicle.)
(ix) Name of the person carrying the goods (Where the goods are carried in a vehicle.)

Name in full and status

Signature of the selling dealer/consignor or his authorised signatory.

1.9       Miscellaneous

 (i) Only an original copy of a tax invoice shall be valid to set up a claim of input tax for the purposes of section 8 (2). The original copy shall bear the words "Valid for input tax" on it.

(ii) Before making use of any new series of invoices and delivery notes, the dealer shall inform the assessing authority concerned of their serial numbers.

(iii) Every dealer shall maintain a 'Petty Sale Book' for keeping record of un-invoiced petty sales made by him because he is not required to invoice such sales under section 28 (2). In Petty Sale Book shall be recorded each un-invoiced petty sale or aggregate of group of sales made near about the same time rate of tax wise without necessarily making mention of the customer's name and description, quantity and per unit price of the goods sold. The total of each day shall be struck separately and posted in Day Book.

(iv) A VAT dealer who returns any goods sold to him by another VAT dealer on a tax invoice, shall issue to the selling VAT dealer at the time of return of the goods, a delivery-cum-debit note showing the prescribed particulars and shall reverse the input tax availed of by him relating to the goods.

 Follow Us on