20 July 2010
We are a Sec.25 company whose regd. office is in Mumbai but all our operations are done from Delhi. We are maintaining proper books of account in Delhi. Is it necessary to maintain and keep books in Mumbai office even if our principal office is in Delhi? What will be formalities to be complied with if we want to maintain our books in Delhi.
Is this requirement to be complied with for the books apart from statutory books? I want to know specifically about Accounting books and all voucher records. We want to keep them at Delhi.
20 July 2010
ALL OR ANY OF THE BOOKS OF ACCOUNT MAY BE KEPT AT SUCH OTHER PLACE IN INDIA AS THE BOARD OF DIRECTORS MAY DECIDE. THE COMPANY SHALL WITHIN 7 DAYS OF THE DECISION OF THE BOARD , FILE THE REGISTRAR A NOTICE IN WRITING GIVING THE FULL ADDRESS OR THAT OTHER PLACE. THE NOTICE TO REGISTRAR SHALL BE GIVEN IN FOMR NO . 23AA AND SHALL SPECIFY THE NAMES OF THE BOOKS OF ACCOUNT TO BE KEPT AT THAT OTHER PLACE.
20 July 2010
Is this requirement to be complied with for the books apart from statutory books? I want to know specifically about Accounting books and all voucher records. We want to keep them at Delhi.
20 July 2010
Yes, the procedure stated by Mr. Bansal is SPECIFICALLY for Books of Accounts only and not for statutory books.
For statutory books you cannot keep at any other place than registered office.
However by passing special resolution and filing Form with registrar it can be kept at any other place but WITHIN CITY WHERE REGISTERED OFFICE IS LOCATED.
20 July 2010
Section 209 defines books of accounts which includes all voucher and accounting books also.
Section 209. Books of account to be kept by company
1[(1) Every company shall keep at its registered office proper books of account with respect to-
(a) all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;
(b) all sales and purchases of goods by the company; 2[* * *]
(c) the assets and liabilities of the company; 3[and]
3[(d) in the case of a company pertaining to any class of companies engaged in production, processing, manufacturing or mining activities, such particulars relating to utilisation of material or labour or to other items of cost as may be prescribed, if such class of companies is required by the Central Government to include such particulars in the books of account:]
Provided that all or any of the books of account aforesaid may be kept at such other place in India as the Board of directors may decide and when the Board of directors so decides, the company shall, within seven days of the decision, file with the Registrar a notice in writing giving the full address of that other place.]
(2) Where a company has a branch office, whether in or outside India, the company shall be deemed to have complied with the provisions of sub-section (1), if proper books of account relating to the transactions effected at the branch office are kept at that office and proper summarised returns, made up to dates at intervals of not more than three months, are sent by the branch office to the company at its registered office or the other place referred to in sub-section (1).
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