What kind of books of accounts are required to be maintained under VAT?
Simplicity of record keeping the major objective of VAT. Broadly speaking, dealers are required to maintain a record of all the purchases made and all the sales made. It is further clarified that there are no statutory forms under VAT. Vat works on an invoice based system where Input Tax Credit is allowed on the strength of tax invoice. Tax invoice indicates the tax charged separately and is issued by all registered dealers for sales made by them to other registered dealers on the basis of which input tax credit is claimed whereas invoices issued to customers or non registered dealers are termed as retail invoices/ cash memos.
