Books with invoices, including vouchers and receipts, must be maintained under different statutory laws – Income Tax Act, Companies Act 2013 and GST Act. Books accounts that maintain, retention and claim lists are different according to all 3 laws.
According to the Income Tax Act
If the sales / turnover / gross income of the company or profession are more than Rs. 25,00,000 or income from business or profession is more than Rs. 2,50,000 in any of 3 recent years, accounting records will be kept in a satisfactory manner.
The following Professions are covered by this provision –
- Legal
- Medical
- Engineering
- Architectural
- Accountancy
- Technical Consultancy
- Interior Decoration
- Authorised Representative (one who charges fees for representing someone before tribunal or any authority)
- Film artist (Producer, Editor, Actor, Director, Music director, Art Director, Dance Director, Cameraman, Singer, Lyricist, Story Writer, Screenplay or Dialogue Writer and Costume Designers.
- Company secretary
Thus, if the above professions have income more than Rs. 2,50,000 in any 3 past years, they need to maintain accounting. In the case of a new profession, revenue is expected to be more than Rs. 2,50,000, professionals should maintain books.
Books of accounts as per Rule 6F
- Cash Book
- Journal
- Ledgers
- Copies of bills or receipts
- Daily tariff with information about patients, services provided, fees received and receipt date (persons engaged in medicine)
- Information about stocks of medicines, medicines and other consumer products (physicians)
If income is not more than Rs. 2,50,000 in any 3 past years or not expected to be more than Rs. 2,50,000 if a new profession is in place, books should also be kept. However, books, in this case, have not been specified – so that some books can be kept, but it should be possible for ATO to calculate revenue.
How long does the books hold?
Books shall be kept for 6 years after the end of the year in question.
Under the Law of Business
Every company needs to keep a book, office or office that the board member can decide. If the company holds books in an office other than a registered office, it must match the RoC. The company can also keep the accounts electronically.
How long does the Books hold?
Books shall be kept for 8 years from the end of the relevant fiscal year.
Accounts Books that Maintain
- Statement of Cash Flows
- List of sales and purchases,
- List of assets and liabilities
- Costs
- Works, attachments, writing, documents, minutes and records whether in physical or electronic form
According to GST law
Every registered person must maintain GST entries at the main business center.
Files that are Maintained
- Manufacture or manufacture of goods
- Import and export of goods or services or both
- Stock of goods
- Income tax new
- Contributions tax paid and paid and
- Other information that may be prescribed
How long should Records keep?
Books and records shall be kept for 6 years from the last filing date of the annual dividend (31 December) for that year.
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