S K G Consultancy Services Pvt. Ltd.

(1) Every registered dealer and every dealer liable to pay tax under this Act shall maintain

correct account of his purchases, sales and stocks showing value, of different kinds of goods

subject to different rates of tax under this Act.

(2) 2Every dealer whose turnover in a year exceeds rupees sixty lacs- w e f 10.8.10 [forty

lacs- upto 9.8.10] shall get his account audited by a Chartered Accountant and furnish the

report of such audit in such manner and within such time as may be prescribed. 2

3/4Provided that a dealer who is an industrial unit having annual turnover of upto ten

crore rupees may get his accounts audited by a member of Institute of Cost and works

Accountants of India.

(3) If the Commissioner considers that the accounts maintained by any dealer or any class

of dealers do not sufficiently enable him to verify the returns referred to in sub-section (1) of

Section 18 or the assessment cannot be made on the basis thereof, he may by an order,

require any dealer or by notification any class of dealers, to keep such accounts including

records of manufacture, sales, purchases or transfers in such form and in such manner as

he may, subject to rules made under this Act, direct.

(4) If the Commissioner considers that any class of dealers are not in a position to maintain

accounts in accordance with the provisions of sub-section (1), he may, for reasons to be

recorded in writing, exempt such class of dealers from the operation of the provisions of the

said sub-section.

20(5) If a registered dealer fails to furnish the report as required under sub-section 23. (2) in

respect of a year within the time prescribed, the commissioner may, after giving such dealer

an opportunity of being heard, direct him to pay by way of penalty a sum equal to 0.1 percent

of the turnover in the year or rupees ten thousand, whichever is less.