12 Time at which turnover, turnover of purchases and adjustments arise

(1) Subject to sub-sections (2), (3) and (4) of this section, the amount of the turnover and the turnover of purchases of a dealer which arises during any tax period shall be the amount recorded in the accounts of the dealer where those accounts are regularly and systematically prepared and maintained, give a true and fair view of his dealings, and are employed by the dealer in determining the turnover of the dealers business for commercial or income tax purposes.

(2) The Commissioner may by notification 

(a) permit certain classes of dealer to record turnover based on amounts paid or received; and

[(b) be entitled to carry forward the amount remaining after application under sub-section (2)(a) to next calendar month or tax period, as the case may be, or to claim a refund of the amount remaining after application under sub-section (2)(a) at the end of a tax period and the commissioner shall deal with the refund claim in the manner described in section 38 and section 39 of this Act.

Explanation-1 Refund can be claimed at the end of a tax period only.

Explanation-2 Excess payment made inadvertently shall also be treated as credit in a month or tax period as the case may be.] (Substituted by the Notification Dated 27 Mar 2015)

(3) Where a dealer wishes to change the method of determining the turnover and turnover of purchases, he may only make the change with the consent of the Commissioner and on such terms and conditions as the Commissioner may impose.

(4) The Government may prescribe the time at which a dealer shall treat the 

(a) turnover;

(b) turnover of purchases; and

(c) adjustment of tax or adjustment to a tax credit;
as arising for a class of transactions.