(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
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.