(1) Where in any particular year gross turnover of a dealer exceeds One crore rupees or such other amount as the State Government may, by notification in the Official Gazette, specify, then such dealer shall get his accounts, in respect of that year, audited by an accountant before 31st December in the following year and obtain a report of such audit duly signed and verified by such accountant and setting forth such particulars as may by prescribed.

(2) A true copy of such report shall be furnished by such dealer to the assessing authority within two months after the expiry of the period during which the audit is required to be completed as per sub-section (1).

Provided that the dealers dealing exclusively in purchase and sale of goods exempted from tax under the Act or the dealers making subsequent sale of Special Category Goods need not submit audit report provided under sub-section (1).

(3) Where in any particular year gross turnover of a dealer exceeds forty lakh rupees but does not exceed one crore rupees then such dealer shall furnish a true copy of the audit report of his accounts duly signed and verified by a chartered accountant, or a Cost Accountant or an Auditor. This report shall be submitted to the assessing authority by 31st December of the following Year.

Explanation- For the purpose of this Section. "Accountant" means a Chartered Accountant as defined in the Chartered Accountant Act, 1949, a Cost Accountant as defined in the Cost and Works Accounts Act, 1959, 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 under the said Act.