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Memorandum Trading Account of Branches

s kumar (ca) (105 Points)

08 December 2007

Is it necessary to prepare Memorandum Trading Account in case of a branch of a company whose Head Office is located outside the State? Whether calculations of VAT & CST is sufficient for the purpose of VAT Audit?

What if the branch does not maintain any Figures of Stocks ?

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3 Replies

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 10 December 2007

Plesae go through the Act of your State andtry to find out the obligation caste on the dealer to maintain books of accounts and records. In most of te States, keeping of stock record is mandatory and there are penal povisions in this regard. However, as the purchase price in case of stok transfer is normally on notinal figures, instaed of trading A/c. Memorandum Trading Account may be prepared giving the sufficint notes & declaration.

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If it is a case relating to the State of Assam?

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 12 December 2007

In Assam books of accounts and stock registers are mandatory. Further as per requirment of form no. 47, details relating to trading accounts are also to e part of audit repor.