yashsr (CA) (2285 Points)
10 October 2012Hello,
A Proprietor has kept records of 15 years in his office and wants to remove the data for the years in which it not required. What is the maximum time period for maintenance of books under all relevant Acts(i.e. Income Tax, Maharashtra VAT, CST, Service Tax, Profession Tax etc.)?
siva durga prasad
(Internal Auditor )
(34 Points)
Replied 10 October 2012
10 years as latest provision.
yashsr
(CA)
(2285 Points)
Replied 10 October 2012
| Originally posted by : siva durga prasad | ||
 |
10 years as latest provision. |
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Can you please elaborate? Which Act? Was this declared in the last Budget?
Sunil
(Trader)
(2611 Points)
Replied 10 October 2012
It used to be 8 years and now it seems to have been increased to 10 this year.. This may also mean that if any process is initiated you will have to retain for 10 years from the end of the FY the process is completed.
However, ledger / journal has to be kept for 16 years as that does not seem to have changed.
yashsr
(CA)
(2285 Points)
Replied 10 October 2012
| Originally posted by : Sunil | ||
|
|
It used to be 8 years and now it seems to have been increased to 10 this year.. This may also mean that if any process is initiated you will have to retain for 10 years from the end of the FY the process is completed. However, ledger / journal has to be kept for 16 years as that does not seem to have changed. |
|
Thanks! What is the reference? From act are you quoting these years? Is it the Income Tax Act or the Maharashtra Value Added Tax Act or what??? Since this is a proprietor, the Companies Act will not apply.
Refer Section 209(4A) of companies act 1956
Books of accounts and vouchers of a company required to maintain for a period of 8 years immediately preceding the current year.
1.Books of accounts and vouchers of a company required to maintain for a period of 8 years immediately preceding the current year.
2. Books of accounts and vouchers of a section 25 company required to maintain for a period not less than 4 years.
3.The Register and Index of Members must be maintained permanently
4. The Register and Index of debenture-holders must be maintained for 15 years after the redemption of debentures.
5. The copies of all Annual Returns and Certificates annexed thereto must be maintained for 8 years from date of filing with the ROC.
6.In case of amalgamation/merger, the books and papers of the amalgamated/transferor company can only be disposed of with prior permission of the Central Government.
7.The books and papers of a company which has been liquidated/wound-up and of its liquidator shall not be destroyed before 5 years from the date of dissolution, unless there is prior permission from the Central Government.
As per Income Tax Act, 1961,
1. All assesses are required to maintain specified books of account for a period of 6 years from the end of relevant assessment year.
2. In case of International Transactions (Transfer pricing issues), the transfer pricing documents and information specified under Rule 10D must me maintained for income-tax purposes.
under Central Excise
Daily Stock Account of goods produced must be preserved for a period of five years immediately after the financial year to which such record pertain.
thanks
yashsr
(CA)
(2285 Points)
Replied 10 October 2012
Thanks! Companies Act will not apply since in my case the entity is a Proprietorship.
So is it safe to assume that 6 years is the time limit? When people are telling 8/10 years, under which Act is the limit? Thanks!
Sunil
(Trader)
(2611 Points)
Replied 11 October 2012
yashsr it used to be 8 years and 16 years for the ledger. However, after introduction of block assessment for raid cases they take 6 years for block assessment and then you need the books for the last 6 years before the current year to be in possession so you can handle your raid case.
Sunil
(Trader)
(2611 Points)
Replied 11 October 2012
Therefore you look at specifically the section for raid cases and accordingly you keep records that would help you file returns under those sections. The period of retention will also be there. Just check because they specify for how many years further you have to keep these books of 6 years old. I am not a CA but I know people who have gone through this and have observed their cases the way it was handled.
Sunil
(Trader)
(2611 Points)
Replied 11 October 2012
Eventually after the assessment from raid is over they ask you to come and take bak the books. After this there are appeals and what not. You have to retain these for certain number of years after completion of the last process (appeal before tribunal or whatever. Just cross your fingers your client never gets to that stage.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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