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Fixed Asset Register

namrata (company secretary ) (422 Points)

08 June 2010

Hi,

Is it necessary for a Pvt Ld Co. to maitain a Fixed asset Register as per Income tax act & as per Books.Kindly let me Know about this.

Regards

namrata

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21 Replies

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 08 June 2010

Fixed asset register is mandatory for Companies act , 1956 . As per Caro requirement its compulsary so if CARO is not applicable on your business then its not mandatory. Income tax act there is no specific provision to maintain fixed asset register. However it is form part of Books of accounts.

4 Like

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 08 June 2010

As per company law fixed assets register is not mandatory to maintain.

Mandatory Statutory Registers under Companies Act, 1956

Register of Investments not held by company in its own name u/s 49(1)
Register of fixed deposit under Acceptance of Deposit Rules, 1975
Register of Securities bought back u/s 77A.
Register of Charges u/s 143.
Register & Index of Members u/s 150 & 151.
Register of Debenture holders u/s 152
Register of Beneficial Owner u/s 152A.
Register of Foreign Members u/s 157.
Process dings of General & Board Meetings (Minutes) u/s 193.
Books of Accounts u/s 209
Cost Records u/s 209(1)(d).
Register of Contracts in which Directors are interested u/s 301.
Register of Directors, Manager & Secretary u/s 303.
Register of Directors’ Shareholding u/s 307.
Register of Inter Corporate Loans & Investments u/s 372A.
Register of Renewed & Duplicate Share Certificate.

Non-Mandatory Statutory Registers under Companies Act, 1956

Director Attendance book.
Shareholder/Proxy Attendance book.
Register of Sealed Documents.
Register of Share Application & Allotment.
Register of Share Transfer/ Transmission.
Register of Dividend.
Register of Power of Attorney/Probate etc.
Register of Dividend Mandate.
Register of Bank Account Particulars.
Register of Electronic Clearing Service.
Register of Fixed Assets.
Register of Form 24AA from Directors
Register of Nominations received.
Register of Share Warrants.
Register of Proxies.

5 Like

vishal (Article Assistant) (32 Points)
Replied 08 June 2010

Hi namrata!

i agree with Mr.Ankur that its not a stat requirement, but looking at it from internal control angle its suggested/recommended to maintain 1!

Cheers..

1 Like

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 08 June 2010

Agree with Vishal and Ash as maintenance of fixes assets register is highly convenient for the company and for auditor.

Thanks

1 Like

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 08 June 2010

You have to maintain Register of Fixed Assets because of CARO Requirement... Otherwise auditors will qualify your report.

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(Guest)

A fixed asset register is a statutory register maintained under section 209(1)(c) of the Companies Act. 1956. This register requires a company to maintain various details relating to all its assets that form a part of its total fixed asset block. Any failure to maintain this register as required by the statute may entail penalty, which may extend to imprisonment in some cases.

Regards

K.Ilayaraja

(Guest)

Originally posted by : Ash Jain
	Fixed asset register is mandatory for Companies act , 1956 . As per Caro requirement its compulsary so if CARO is not applicable on your business then its not mandatory. Income tax act there is no specific provision to maintain fixed asset register. However it is form part of Books of accounts.

Regards

K.Ilayaraja

(Guest)

Originally posted by : Ilayaraja...
	A fixed asset register is a statutory register maintained under section 209(1)(c) of the Companies Act. 1956. This register requires a company to maintain various details relating to all its assets that form a part of its total fixed asset block. Any failure to maintain this register as required by the statute may entail penalty, which may extend to imprisonment in some cases. Regards K.Ilayaraja

pallawi (Articleship) (71 Points)
Replied 08 June 2010

Sir,

I have seen minus balance in fixed asset register, when inquired, it was told that it is due to cancellation of excess liability of earlier years, since they were not able to identify the particular asset against whom, it has neen created, it has been shown minus entry in asset register for calculation purpose. kindly guide me and also tell in what circumstances minus entry in asset register can be done.

varun gupta (Senior Accounts Officer) (89 Points)
Replied 08 June 2010

i agree with ash jain

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Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 09 June 2010

Agree with Ankur Sir

G Aditya (Article) (289 Points)
Replied 09 June 2010

Minus entry in fixed asset register is not an acceptable methodology.....

Fixed assets are to be shown at nominal value if due to liability it is written off completely..

moreover any excess liability should be recorded separetely.

Ram Prakash Gautam (Manager Accounts & Taxation) (1006 Points)
Replied 09 June 2010

sir,

plz give me knowledge about CARO ????

G Aditya (Article) (289 Points)
Replied 09 June 2010

I am providing u a summary..

CARO refers to companies auditors report order,2003.

IT CONTAINS A LIST OF OBSERVATIONS AND DISCLOSURES TO BE MADE IN AUDIT REPORT BY THE AUDITOR AFTER COMPLETION OF AUDIT. AUDITOR GIVES HIS OPINION BASED ON ABOVE OBSERVATIONS.

1. Applies to every company including a foriegn company u/s 591 of companies act.

2.Does not applies to a banking, insurance and company licensed to operate u/s 25

3. DOES NOT apply to a private limited company-

WHOSE PAID UP CAPITAL AND RESERVES DOES NOT EXCEED 50 LACS AND

WHICH DOES NOT HAVE ANY LOAN OUTSTANDING EXCEEDING RS 25 LACS FROM ANY BANK OR FINANCIAL INSTITUTION AND

WHICH DOES NOT HAVE A TURNOVER EXCEEDING RS 5 CRORES.

ALL THESE CONDITIONS IF EXIST TOGETHER THEN ONLY REPORTING REQUIREMENT NEED NOT BE COMPLIED..EVEN IF ANY ONE CONDITION IS NOT APPLIED THEN CARO WILL BE APPLICABLE TO THAT PRIVATE LIMITED COMPANY.