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
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.
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
Non-Mandatory Statutory Registers under Companies Act, 1956
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..
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
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.
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
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
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.
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 09 June 2010
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.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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