ACCOUNTS AND RECORDS
35. Accounts and other records
(1) Every registered person shall keep and maintain, at his principal
place of business, as mentioned in the certificate of registration, a true and
correct account of—
(a) production or manufacture of goods ;
(b) inward and outward supply of goods or services or both ;
(c) stock of goods ;
(d) input tax credit availed ;
(e) output tax payable and paid ; and
(f) such other particulars as may be prescribed :
Provided that where more than one place of business is specified in
the certificate of registration, the accounts relating to each place of
business shall be kept at such places of business :
Provided further that the registered person may keep and maintain
such accounts and other particulars in electronic form in such manner
as may be prescribed.
(2) Every owner or operator of warehouse or godown or any other place
used for storage of goods and every transporter, irrespective of whether he
is a registered person or not, shall maintain records of the consigner,
consignee and other relevant details of the goods in such manner as may be
prescribed.
(3) The Commissioner may notify a class of taxable persons to maintain
additional accounts or documents for such purpose as may be specified
therein.
(4) Where the Commissioner considers that any class of taxable persons
is not in a position to keep and maintain accounts in accordance with the
provisions of this section, he may, for reasons to be recorded in writing, permit
such class of taxable persons to maintain accounts in such manner as may be
prescribed.
(5) Every registered person whose turnover during a financial year
exceeds the prescribed limit shall get his accounts audited by a chartered
accountant or a cost accountant and shall submit a copy of the audited annual
accounts, the reconciliation statement under sub-section (2) of section 44
and such other documents in such form and manner as may be prescribed.
(6) Subject to the provisions of clause (h) of sub-section (5) of section 17,
where the registered person fails to account for the goods or services or both
in accordance with the provisions of sub-section (1), the proper officer shall
determine the amount of tax payable on the goods or services or both that
are not accounted for, as if such goods or services or both had been supplied
by such person and the provisions of section 73 or section74, as the case
maybe, shall, mutatis mutandis, apply for determination of such tax.
36. Period of retention of accounts
Every registered person required to keep and maintain books of
account or other records in accordance with the provisions of sub-section (1)
of section 35 shall retain them until the expiry of seventy two months from
the due date of furnishing of annual return for the year pertaining to such
accounts and records :
Provided that a registered person, who is a party to an appeal or revision
or any other proceedings before any Appellate Authority or Revisional
Authority or Appellate Tribunal or court, whether filed by him or by the
Commissioner, or is under investigation for an offence under Chapter XIX,
shall retain the books of account and other records pertaining to the subject
matter of such appeal or revision or proceedings or investigation for a period
of one year after final disposal of such appeal or revision or proceedings or
investigation, or for the period specified above, whichever is later.
