Introduction this policy is primarily framed based on regulation 9 of the securities and exchange board of india listing obligations and disclosure requirements regulations, 2015 hereinafter referred to as listing regulations and companies act, 20. Maintenance of books of accounts under income tax act, gst act. Registered office is an official address of an entity. Which registers does a company need to maintain under. Provided further that the company may keep such books of account or other. Registers and documents to be maintained by the company the various registers and files to be maintained by the companies under the companies act. A company is required to furnish these before the registrar of companies within certain. The index contains the latest amendments, list of all sections including sections which has not yet been notified, schedules, and rules made under the companies act, 20. Annual compliance requirements and registers to be. Books of accounts including vouchers and receipts are required to be maintained under different statutory laws income tax act, companies act 20 and gst act. Chapter xviii removal of names of companies from the register of companies. Section 128 of indian companies act 20 books of account, etc. Registers and documents to be maintained by the company the various registers and files to be maintained by the companies under the companies act, 1956 and other corporate laws have been segregated into three categories as follows. Books of account of company maintenance, inspection and.
For the purposes of this act, the term startup or startup company means a private company incorporated under the companies act, 20 18 of 20 or the companies act, 1956 1 of 1956 and recognised as startup. Maintaining book of accounts for company indiafilings. Sep 17, 2014 the companies act, 20 the act provides for books of accounts and other books and papers to be maintained by company. Read this article to learn about the statutory books to be maintained by a company. Rule 2a deals with the notice of address at which books of accounts are to be maintained. Company law books of accounts companies act 20 for cs. Accounts related provisions under companies act 20.
Some of the amendments with respect to the books of accounts and keeping the books of accounts have been presented here. This an act to consolidate and amend the law relating to companies. As we discussed earlier here according to section 128 of the companies act 20, every company. Short title and commencement 1 these rules may be called the companies cost records and audit rules, 2014. Manner of books of account to be kept in electronic mode is provided under rule 3 of companies accounts rules, 2014. The books of accounts are to kept and maintained for a period of six years from the end of the relevant assessment year. In this act, unless the context otherwise requires, 1 abridged prospectus means a memorandum containing such salient features of a prospectus as may be specified by the securities and exchange board by making regulations in this behalf. The registers to be maintained as per companies act are mentioned in this article. Section 128 of the companies act, 20 provides for maintenance of books of accounts under the new companies act. Maintaining book of accounts for company companies act all companies incorporated in india are required to mandatorily maintain book of accounts under the companies act, 20. Board resolution for keeping books of accounts other than registered office resolved that pursuant to the proviso to section 1281 of the companies act, 20, the books of accounts of the company be kept and maintained at the companys head office at with effect from and that mr, secretary of the company, be and is hereby authorised to file electronically eform no mgt14.
The companies act, 20 states that every company that has been incorporated under the act is required to keep at its registered office such books, registers and copies of certain returns. May 04, 2020 download index part of ebook on companies act 20. The books of accounts of the company shall be kept in good order for a period of 8 fys and in case investigations ordered by cg it may direct a longer period. Moreover, the companies act, an organization enlisted in india will likewise be ordered by the income tax act to look after records. Statutory books the companies act, 20 states that every company that has been incorporated under the act is required to keep at its registered office such books, registers and copies of certain returns, documents etc. Books of accounts and other books and papers may be open for inspection by a. Every company is under obligation to maintain certain register under section 85, section 88 etc. Every company including foreign companies and llps registered under companies act, 20 shall have a registered office in the state where it is registered. Companies under the old act were maintaining the same in physical form, however companies act, 20 has changed the picture totally for listed companies and a company having not less than shareholders, debenture holders and other security holders. Notice of address at which books of account are to be maintained rule 2a. The companies accounts rules 2014 came into force from 1st april 2014.
Maintenance of books of accounts as per companies act, 20. Every company is required to maintain statutory records in the form of registers, minutes etc. All companies incorporated in india are required to mandatorily maintain book of accounts under the companies act, 20. Statistical books refer to books of account and such other record books like an inventory. Maintenance of books of accounts refers to the records that company has to maintain to keep the details of the specified financial transaction. In addition to the books of accounts, registers of certain particulars that are prescribed under the companies act must be maintained by a company. Maintenance of records, electronically companies act 20. How to keep books of account as per new companies act enroll my. As per the provisions of section 128 of companies act 20, company may keep books of account or other relevant documents in electronic mode in such manner as may be prescribed.
This provision has been given under section 128 of the companies act, 20. Board resolution for keeping books of accounts other than. Registered office a book shop of a company where all the statutory registers and books of accounts shall be kept. The act has replaced the companies act, 1956 after receiving the assent of the president of india on 29 august 20. As per this section every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year which gives a true and fair view of the state of affairs of the company, including that of its. In this article, we look at maintaining book of accounts for a company, as per companies act, 20. Complete checklist post registration compliances for. Provisions related to keeping, maintaining and inspecting books of accounts of any company and penalties under section 128 of the companies act, 20. Maintaining book of accounts for company companies act.
The notice regarding the address at which books of account may be kept shall be in form aoc5. Section 294 of the companies act, 20 advocatespedia. In this article we will look at books of accounts to be maintained by private limited company, as you know all companies that are formed in india are required to obligatorily keep up a book of records or book of accounts under the companies act, 20. Moreover, the companies act, an organization enlisted in india will likewise be ordered by the. Section 128 129 companies act 20 books of account, etc, to. Policy for preservation of documents and archival of documents 1. Notice of address at which books of account are to be maintained. Section 128 of companies act, 20 books of account, etc. Section 128 of the companies act, 20specifies the following key features related to the proper books of account as under.
Books of account of company maintenance, inspection and penalty. Aug 21, 2015 companies act mandates every company to keep its books of accounts and other related books, papers along with financial statements at the registered office of the company. Chapter xix revival and rehabilitation of sick companies. This form has been inserted after aoc4 in the annexure given under the companies act, 20. Md, wtd in charge of finance, cfo and such other person charged by the bod with compliance of this section, contravenes the provisions shall be punishable with imprisonment for maximum 1. How to keep books of account as per new companies act. May 20, 2014 every company is required to maintain statutory records in the form of registers, minutes etc. In addition, the companies act, a company registered in india will also be mandated by the income tax act to maintain records. Since these documents are of immense importance to company, government and other stake holders, section 128 of the act 128 read with companies accounts rules, 2014 the rules spell the mode and manner in which these books of accounts and books and papers.
Period of preservation of accountsrecords under different. Nov 19, 20 the books of accounts of every company together with the vouchers relevant to any any entry in such books of account shall be kept in good order for a period of not less than eight financial year. This can be used by the corporates, professionals and students as a ready reckoner for better understanding of the provisions and easy reference. According to the companies act, a company has to maintain several types of books and registers. The act came into force on 12 september 20 with only 98 provisions of the act notified. Therefore, if any company maintain its books of account either on cash basis or singlemixed entry system then it contravene the provisions of section 128 of the companies act, 20. Companies act mandates every company to keep its books of accounts and other related books, papers along with financial statements at the registered office of the company. All documents and information as originally filed with roc for incorporation of company under section7 subsection 1. Books of accounts and cost records 209 by registrar, officer of the government or sebi without fees and notice. Maintenance of books of accounts and other documents under. Section 128 of the companies act deals with the books of accounts to be kept by the company. Companies act, 20 requires every company to maintain at its registered head office office books of accounts and relevant documents and. For preparation of annual accounts the maintenance of proper books of account is a must.
Section 44ada presumptive taxation for professionals the assessee filing return under section 44ada is not required to maintain books of account under section 44aa. Assessees are required to preserve the specified books of account for a period of 6 years from the end of the relevant assessment year, i. Essential statutory registers books to be maintained under companies act, 20. Maintenance of books of accounts would mean records maintained by the. The accounts to be prepared should be in the format prescribed in schedule iii of the companies act, 20. Book and paper and book or paper include books of account, deeds, vouchers. Books are often classified as statutory books and statistical books. Section 128 129 companies act 20 books of account, etc. The companies act 20 is an act of the parliament of india, divided into 29 chapters containing 470 sections and has 7 schedules. Company law books of accounts companies act 20 for cs executive jun dec 2018. If the saleturnovergross receipts from the business or profession is more. The companies act, 20 has been notified in the official gazette on 30th august, 20 but the provisions of this act shall come into force on such dates as the central government may notify in the. Maintenance of books of accounts under income tax act, gst. Since these documents are of immense importance to company, government and other stake holders, section 128 of the act 128 read with companies accounts rules, 2014 the rules spell the mode and manner in.
Where to keep companys books of account section 128 of. Provisions on books of accounts under companies act 20. Requirement of keeping books of account section 128 maintenance of books of account would mean records maintained. A company is required to maintain its books of account and vouchers for a period of 8 years immediately preceding the current year. Registers and documents to be maintained by the company. Period of preservation of accountsrecords under different laws. Books of account includes records maintained in respect of. The 20 act introduces a new type of entity to the existing list i.
Books of accounts and other books and papers may be open for inspection by a director of the company. However, the articles of the company can provide for such right of inspection for its shareholders and the timing for it. Books of accounts to be maintained for company myonlineca. Books of accounts under companies act, 20 white paper. Annual compliance requirements and registers to be maintained. Maintenance and inspection of documents in electronic form effective from 1st april, 2014 without prejudice to any other provisions of this act, any document, record, register, minutes, etc.
Apr 10, 2015 the companies accounts rules 2014 came into force from 1st april 2014. Books of accounts must be maintained at registered office for 8 years. Books to be maintained, retention period and compulsion requirements are different under all the 3 laws. But in many cases, the registered office of the company is being situated a place.
The erstwhile corresponding section 209 on books of accounts to be kept by company of companies act, 1956 dealt with the books of accounts required to be maintained to give a true and fair view of the state of affairs of the company or branch office and to. Thereby, every report made by the auditor us 143 of the companies act ca 20, comes under caro. These rules first time recognised electronic mode for keeping of books of account. For the purposes of the first proviso to subsection 1 of section 128, the notice regarding address at which books of account may be kept shall be in form aoc5 companies accounts rules, 2014 effective from 1st april, 2014. Section 294 of the companies act, 20 states that, 1 the company liquidator shall maintain proper and regular books of account including accounts of receipts and payments made by him in such form and manner as may be prescribed. Section 128 of the companies act, 20 contains the provisions for books of account etc. The last date for efilling of companys annual returns and balance sheet under companies act is. Books of accounts section 2 of the continue reading how to keep books of account as per. As per new companies act, 20, many new amendments have overcome and hence a company needs to comply with these amendments as those are mandatory w.
Books of account, etc, to be kept by company and financial statement are defined under section 128 and 129 of indian companies act 20. Chapter xxi part i companies authorised to register under this act. Right to inspection of the books of accounts of the company. The members of the company are not vested with any such right to inspect the books of account anywhere specifically in the companies act, 20. Where an investigation has been ordered in respect of the company, the central government may direct that the books of account may be kept for such. The books of accounts of every company together with the vouchers relevant to any any entry in such books of account shall be kept in good order for a period of not less than eight financial year. In this article, we discuss how to maintain books of accounts. Post incorporation compliance for a private limited. Section 128 provides for maintenance of books of accounts under the new companies act, 20. The companies act, 20 passed by the parliament has received the assent of the president of india on 29th august, 20. Jul 02, 2014 statutory registers books to be maintained by companies under companies act 20. All books of account and other papers of a company are required to be kept at the registered office of the company. Maintenance of statutory registers companies act 20 cleartax.
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