Section 16: Accounts of Transactions to be Mentioned

1) A taxpayer shall maintain up-to-date accounts of his/her transactions of the tax period under Section 18, and such accounts, wherever placed, shall be made available for inspection to the Tax Officer on his/her demand.

1a) The Department may receive continuous access to the computer database of the taxpayer.

2) The following matters shall also be included in the accounts so maintained by the taxpayer: –

(a) Date of transactions,

(b) Registration number, Value of each transaction,

(c) If the other party to the transaction is registered, and

(d) Other prescribed matters related with transaction.

3) A registered person shall use, for the purpose of keeping accounts, the purchase and sales book certified by himself or herself for each financial year for the purpose of maintaining accounts. The tax officer may inspect such accounts at any time.

4) Every taxpayer shall preserve the accounts of transactions for a period as prescribed.

5) The accounts maintained by a taxpayer by fulfilling the procedures specified by this Act or the Rules framed hereunder shall be recognised unless proved otherwise.