54. Accounts to be Audited in certain cases

(1) Every dealer whose gross turnover exceeds forty lakh rupees shall, for the purposes of this Act, get his annual accounts audited by an accountant by –

(i) the 30th day of November of the following year, in the case of a company formed and registered under the Companies Act, 1956; and

(ii) the 31st day of October of the following year in any other case.

(2) Every dealer referred to in sub-section (1) shall obtain, by the date specified in that subsection, a report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed and true copy of such report shall be furnished, on or before the due date, by such dealer to the prescribed authority.

Explanation-1: In this sub-section, due date means –

(a) where the dealer is a company within the meaning of the Companies Act, 1956, the 30th day of November of the year following the year to which such return relates;

(b) where the dealer is a person, other than a company -

i. in a case where the accounts of the dealer are required under this Act or any other law to be audited or where the report of an accountant is required to be furnished under this section, the 31st day of October of the year following the year to which such return relates;

ii. in any other case, 31st day of July of the year following the year to which such return relates.

Explanation-2: For the purposes of this section, Accountant means a Chartered Accountant within the meaning of the Chartered Accountant’s Act, 1949 and includes a person who, by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956, is entitled to be appointed to act as an auditor of companies registered in any State.

(3) If the accounts of a registered dealer are not required to be audited in terms of the provisions of sub-section (1), such dealer shall furnish, to the prescribed authority, the accounts and statements mentioned in sub-section (2) of section 52 on or before the 31st day of July of the year following the year to which such accounts or statements relates.

(4) If a dealer contravenes the provisions of sub-section (2) or sub-section (3), the prescribed authority shall, after giving the dealer a reasonable opportunity of being heard, impose on him, in addition to any tax payable, a sum by way of penalty equivalent to two percent of the tax payable by him under section 36 for every month, or part thereof, of such default.