37. Accounts and documents relating to principal and agent.

(1) Where a principal dispatches taxable goods within the State to his commission agent for sale, he shall issue a dispatch note in Form VAT 35 in respect of such goods, duly filled in and signed by him, to his commission agent from a bound book bearing printed serial numbers and shall keep a copy thereof for the record.

(2) Where any principal dispatches goods for sale to his commission agent under sub-rule (1), and produces Certificate of the sale proceeds in Form VAT-36 received from his commission agent along with proof of deposit of tax in respect of such goods so dispatched, he will be entitled to get adjustment of the tax so deposited by the agent on behalf of the principal.

(3) Where any agent claims that he is not liable to pay tax under the Act in respect of goods despatched to him by his principal for sale, the burden of proving that the tax in respect of such goods has been paid by the principal through him, shall be on the agent and for this purpose he shall produce before the assessing authority a Dispatch Note issued by the principal in Form VAT-35 along with Certificate of the sale proceeds in Form VAT-36 issued by him and proof of deposit of tax in respect of such sales.

(4) Where the assessing authority is satisfied after such enquiry as he may deem necessary that the particulars contained in the certificate in Forms VAT-35 and VAT-36 are true, he shall accept the claim of the principal or the commission agent, as the case may be.

(5) Every commission agent shall maintain in identifiable manner true accounts of goods he receives and sells on behalf of his principal and on his own account.