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.

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