34. Records to be maintained by agents acting on behalf of principals

(1) Any person acting as a selling agent on behalf of agriculturist principal or any other dealer not registered as a VAT dealer or as a TOT dealer shall be required to maintain records on Form 521 containing the full particulars of names and addresses of agriculturist principals, names and addresses of buying dealers with TIN / GRN, name and quantity of the commodity sold, the date of sale, value of sale etc.

He shall also submit every month a copy of Form 521 along with proof of payment of tax to the Commercial Tax Officer having jurisdiction where such agent is located.

(2)(a) Any person acting as a buying agent or as a selling agent on behalf of resident principals other than agriculturist’s principals shall maintain records on Form 522 containing the details of name and address of resident principal, TIN / GRN, name and quantity of commodity purchased or sold, date of purchase or sale, value of the goods, tax invoice or invoice number issued or received on behalf of principal etc.Provided that the selling agent on behalf of a resident principal shall furnish a declaration to the principal in Form 522B prescribed, when the goods received from such principal are transferred outside the State otherwise than by way of sale under Section 6A of Central Sales Tax Act, 1956, containing the details of good received from the principal and the details of goods transferred outside the State along with the copies of statutory forms received.

(b) Every resident principal registered under the Act who is carrying on the business of selling or buying any of the goods taxable under the Act, through his agent, shall issue a declaration to such agent in Form 522A.

(c) Every dealer, being the principal and claiming exemption on his turnover under clause (b) of sub-section (10) of section 4 shall be in possession, for every tax period, a declaration in form 522C obtained from the registered dealer who, on his behalf as an Agent, sold the taxable goods relating to such turnover and such selling agent shall issue the declaration to his principal within ten days from the end of the month in which such goods were sold.

(d) Every dealer, being the principal and claiming deduction of input tax on goods, purchased by any other registered dealer on his behalf as a buying Agent, shall be in possession, for every tax period, a declaration in Form 522D, duly obtained from such buying agent, together with the tax invoices in original, relating to such purchases, and such buying agent shall issue the declaration and furnish the tax invoices to his principal with ten days from the end of the month in which such goods were purchased.

2A(a) The agent, selling agricultural produce on behalf of the agricultural farmers, shall submit every month the particulars in the Form 521 and in the manner prescribed in sub-rule (1) of this rule to the Commercial Tax Officer having the jurisdiction where such agent is located.

(b) The agent, selling agricultural produce on behalf of the agriculturist principal, is exempted from payment of tax, if he sells the agricultural produce to the registered dealers.

(c) The agent, selling agricultural produce on behalf of the agriculturist principal, is liable to pay tax, if he sells the agricultural produce to any person other than the registered dealer, irrespective of the quantum of turnover of such person and such an agent shall pay tax along with the return in Form VAT 200 at the rate applicable to the goods.

(d) In case the particulars, furnished by the agent in Form 521, are found to be incorrect or are not verifiable, they shall be liable to pay tax on such transactions along with interest and penalty, as may be applicable mutatis mutandis under the Act.”

(3) Every person acting as an agent on behalf of non-resident principal shall issue tax invoices or invoices on behalf of the principal and shall maintain the records on Form 523 containing the details like name and address of the non-resident principal, registration number of non-resident principal in the State, name and quantity of the commodity purchased or sold, value of the goods sold or purchased, date of sale or purchase, particulars of transportation to his principal tax, invoice number issued or received etc.

(4) Every cotton ginning mill shall maintain in the prescribed form the following records, namely;-

(a) Register of kapas ginned and lint dispatched on Form 524.

(b) Register of stocks on Form 525.