Uttar Pradesh VAT Rules

Accounts and documents to be maintained by dealers

1. Every dealer liable to pay tax shall keep and maintain a true and correct account showing the value of the goods sold and bought by him, and in case the accounts maintained in the ordinary course do not show the same in an intelligible form, he shall maintain true and correct account in such form, as may be prescribed in this behalf.
2. A manufacturer liable to pay tax under the Act shall, in addition to the accounts referred to in other sub-sections, maintain stock books in respect of goods used or consumed in manufacture as well as the products obtained at every stage of production.

   Provided that in the case of any class of manufacturers, the aggregate of whose turnover, as defined in explanation to sub-section (2) of section 3, in an assessment year does not exceed ten lakh rupees, the Commissioner, and in any other case the State Government, may relax the requirements of this sub-section subject to such conditions and restrictions as he or it may deem fit to specify.

3. The accounts, documents and the stock books required to be maintained under this section shall be preserved by the dealer for such period as may be prescribed.
4. Every registered dealer who consigns or delivers any goods or class of goods specified in the rules made under this Act or such other goods or class of goods, as the State Government may, by notification in the Gazette, specify in this behalf, of such quantity, measure or value as may be notified, to a dealer whether by reason of sale or otherwise, shall issue to the purchaser or consignee person of goods, a transport-memo in prescribed manner and in prescribed form obtained from the assessing authority having jurisdiction over the area in which principal place of such dealer is situated.
5. Except as provided in sub-section (4) every dealer liable to pay tax while consigning or delivering any taxable goods to another dealer whether as a result of sale or otherwise, shall issue to the purchaser or consignee person of goods, a legible challan or transfer invoice in the prescribed manner containing such particulars, as may be prescribed,.
6. Where any goods are transported by road, original copy of transport memo referred to in sub-section (4) or challan or transfer invoice referred to in sub-section (5), as the case may be, completed in all respects shall accompany the goods during journey of goods.
7. Person transporting the goods for delivery to the consignee shall fill in the particulars in the relevant columns provided on transfer memo, challan or transfer invoice, as the case may be, and shall deliver such transport memo, challan or transfer invoice to the consignee dealer along with goods.
8. Every dealer who receives any form of declaration or certificate prescribed under this Act or rules made thereunder, from its assessing authority or from any other person, shall use them in the prescribed manner and shall keep an account, in the prescribed manner, of all such used and unused forms of declaration or certificates including forms of declaration or certificates received from other persons.
9. No dealer shall transfer to any person and no person shall receive from any person any certificate or any form of declaration prescribed under the rules made under this Act except as provided under this Act or the rules made thereunder.
10. Where a dealer disposes of taxable goods in more than one of the following ways:
    • makes sale of goods inside the State; or
    • consigns goods to other dealers for sale inside the State; or
    • makes sale of goods in the course of inter-state trade or commerce; or
    • makes sale of goods in the course of the export of the goods out of or in the course of the import of the goods into, the territory of India; or
    • consigns goods out side the State otherwise than as a result of sale,

      shall, as far as possible, keep separate account of purchase, sale, receipt and dispatch of goods for each such purpose.

11. A dealer who claims input tax credit under section 13 shall maintain a register in respect of tax period wise computations of amount of input tax credit.
12. A dealer who maintains or keeps books, accounts or documents in a computer, shall also maintain day to day print out of all such books, accounts and documents.
13. Every dealer liable to pay tax shall prepare an inventory of all goods held in stock, as mentioned hereunder, along with their purchase value, on following dates:
    • goods held in opening stock on the date on which the dealer becomes liable to pay tax;
    • goods held in closing stock on the last date of each assessment year;
    • goods held in opening stock on the date on which liability of payment of tax of a dealer under proviso to sub-section (6) of section 3 ceases;
    • goods held in closing stock on the date of discontinuance of business.

      Provided that a manufacturer shall also prepare a list of goods used or consumed in manufacture, processing or packing of any manufactured or semi-manufactured goods held in stock on the aforesaid dates along with their purchase value.

Tax invoice, sale invoice, etc. to be issued by dealer

1. In respect of goods and in the circumstances mentioned below, every registered dealer liable to pay tax on sale of such goods shall issue to the registered purchasing dealer, a tax invoice in the prescribed form and manner containing such particulars as may be prescribed, and shall charge separately the amount of tax payable by him -
   • all taxable goods except goods notified under provisions of clause (d) of sub-section (1) of section 34,
   • goods notified under provisions of clause (d) of sub-section (1) of section 34, where goods sold belong to a registered principal or where the selling dealer sells his own goods.
2. Where a registered dealer sells any goods notified under provisions of clause (d) of sub-section (1) of section 34 to a registered dealer on behalf of an unregistered principal, he shall issue to the purchasing dealer a sale invoice in the prescribed form and manner containing such particulars as may be prescribed:

   Provided that selling dealer after charging amount of tax on such sale invoice shall subtract such amount from the total amount of the sale invoice and purchasing registered dealer shall deduct such amount under the provision of the clause (d) of sub-section (1) of section 34.

   Explanation : For the purpose of this sub-section, sub-section (1) and clause (d) of sub-section (1) of section34, a "registered principal" means a principal who is a registered dealer and " unregistered principal" means a principal other than a registered dealer.

3. Subject to provisions of sub-section (1) and sub-section (2), every dealer liable to pay tax, in respect of sale of all goods in the circumstances mentioned hereunder, shall issue to the purchaser a sale invoice in the prescribed form and manner containing such particulars as may be prescribed, where
   • sale value of single sale exceeds the amount prescribed in this behalf; or
   • purchaser of goods demands a purchase invoice; or
   • any other law prescribes for issues of sale invoice, bill or cash memo in respect of such sale of goods; or
   • selling dealer as a practice issues a sale invoice, bill or cash memo in respect of all sales:

     Provided that the State Government may prescribe different forms of sale invoice for different class of dealers or for different goods or class of goods.

4. On every tax invoice under subsection (1) and on every sale invoice under sub-section (2) selling dealer shall charge amount of tax separately and on a sale invoice issued under sub-section (3) amount of tax shall not be charged separately even if selling dealer is liable to pay tax on such sale.
5. Office copy of tax invoice or sale invoice shall be preserved by the dealer for the period prescribed under sub-section (3) of section 21.
6. Every dealer, while making purchases of any goods from a dealer, shall give his name, address and Taxpayers Identification Number, if any, to the selling dealer.
7. Where a dealer liable to pay tax purchases any taxable goods from a person other than a registered dealer and if the person selling such goods does not issue sale invoice, the purchasing dealer shall issue to the seller a purchase invoice in respect of such purchase in the prescribed form and manner containing such particulars as may be prescribed and shall obtain signature or thumb impression of the person selling the goods.
8. Subject to provision of section 34, any person, while purchasing any goods, shall not deduct any amount as tax from the amount payable to the person selling goods.