26. Tax Period


(1) Subject to sub-rule (2) of this rule, the tax period for all dealers shall be a quarter

(2) The tax period of a dealer who ceases to be registered, shall ceases

(a) if the registration is cancelled by the Commissioner, on the date specified by the Commissioner as the date on which the dealers registration ceases to have


(b) where the dealer dies or is wound up, on the date of death or winding up;

(c) in any other case, on the date of cancellation of the registration.


(3) Deleted w.e.f 30.03.2013


(4) Deleted w.e.f 30.03.2013


 (5) For a dealer, to whom a certificate of registration has been granted for the first time, his tax period, till the end of the year of registration, shall be a quarter and his first tax period shall commence from the date of his liability.


(6) For the purpose of sub-rule (1), the turnover of a dealer shall not include turnover from-

(a) the sale of capital assets;

(b) sales made in the course of winding up the dealers activities; and

(c) sales made as part of the permanent diminution of the dealers activities.


Explanation- For the purposes of this sub-rule, adequate proof of a dealers turnover shall be a copy of the following documents:-


(i) the annual audited accounts of the dealer for the three previous years or the annual accounts duly certified by the dealer where the accounts of the dealer are not required to be audited under any law for the time being in force.

(ii) income tax returns furnished by the dealer for the three previous years duly certified by him or his Accountant.