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Accounts and Records

The main provisions in respect of accounts and records are discussed as follows:

Every registered taxable person must keep and maintain at his principal place of business mentioned in certificate of registration True and correct account of

  1. Production or manufacture of goods.
  2. Inward and outward supply of goods/services.
  3. Stock of goods.
  4. Input credit availed.
  5. Output tax payable and paid.
  6. Other particulars as may be prescribed by rules and regulations framed in this regard.

Further where more than place is specified in registration certificate, the accounts related to each place has to be kept as respective location. For example if we have 2 showrooms mentioned in RC than records has to be kept at both the showrooms. It is permissible maintain records in electronic format.

The commissioner/chief commissioner is empowered to notify class of taxable persons who will be required to maintain additional records. Similarly they are also empowered to specify certain class of taxable persons who are not in position to maintain above records to provide relaxation.

Every taxable person with turnover exceeding the prescribed limit has to get his accounts audited by a CA or a CMA and submit a copy of audited accounts to the proper officer, along with reconciliation and other prescribed documents.

Every owner or operator of warehouse or godown or any other place used for storage of goods irrespective of whether he is a registered taxable person or not shall maintain records of consigner, consignee and other relevant details of the goods as may be prescribed.

Where the taxable persons fails to maintain proper records in respect of goods/services the proper officer shall treat such unaccounted goods/services as supply the person concerned and determine the tax liability apart from the taxable person being subject to penalty under section 66 and 67.

The records have to be preserved for a period of 60 months from the due date for filing annual return in respect of the relevant financial year. For example if the due of filing annual return is 31.12.2018 than in that case return has to be preserved till 31.12.2023

In respect of cases pertaining to appeal, revision, investigation etc. the records has to preserved either till one year after the final disposal of the case or 60 months as above described whichever is later.

The purpose of this article is to create awareness about the soon to be implemented Goods and Service Tax in India.

ca rishabhkumar(The author practices as a Chartered Accountant under the name and style of Rishabh Kumar Barmecha and Associates and is an expert in auditing, financial investigation, direct and indirect taxation. The author can be reached at rishabhkumarbarmecha@gmail.com Mobile No.  91 9007909221 or Twitter @CARKBarmecha.)

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