Mandatory Books of Accounts
Monday, March 2, 2009
For businesses, professionals & manufactureresBenefits of maintaining books of accounts:
- You can compute correct profit and loss.
- will help in justifying the declared results.
- Escape from penalty of Rs.10,000/-
- Profit and loss cannot be calculated.
- During audit declared results can be rejected resulting in furter tax liability.
- Penalty can be imposed.
- Books of accounts to be maintained by a compnay.
Books of accounts for Businesses:
With income up to Rs.200,000/-
- Serially numbered and dated cash-memo / invoice /receipt for each transaction of sale or receipt.
- Daily record of receipts, sales, payments, purchases and expenses; a single entry in respect of daily receipts, sales, purchases and different heads of expenses will suffice; and
- Vouchers of purchases and expenses.
With business income exceeding Rs. 200,000
(excluding wholesalers, distributors, dealers and commission agents:
- Serially numbered and dated cash-memo / invoice /receipt for each transaction of sale or receipt.
- Cash book and/or bank book or daily record of receipts, sales, payments, purchases and expenses; a single entry in respect of daily receipts, sales, purchases and different heads of expenses will suffice;
- General ledger or annual summary of receipts, sales, payments, purchases and expenses under distinctive heads;
- Vouchers of purchases and expenses and where a single transaction exceeds Rs. 10,000 with the name and address of the payee; and
- Where the taxpayer deals in purchase and sale of goods, quarterly inventory of stock-in-trade showing description, quantity and value.
Books of accounts for Professionals:(like medical practitioners, legal practitioners, accountants, auditors, architects, engineers etc.)
- Serially numbered and dated patient-slip / invoice /receipt for each transaction of sale or receipt.
- Daily appointment and engagement diary in respect of clients and patients: Provided that this clause shall not apply to general medical practitioners;
- Daily record of receipts, sales, payments, purchases and expenses; a single entry in respect of daily receipts, sales, purchases and different heads of expenses will suffice; and
- Vouchers of purchases and expenses.
Books of accounts for Manufacturers (with turnover exceeding Rs. 2.5 million):
- Serially numbered and dated cash-memo / invoice /receipt for each transaction of sale or receipt.
- Cash book and/or bank book;
- Sales day book and sales ledger (where applicable);
- Purchases day book and purchase ledger (where applicable);
- General ledger;
- Vouchers of purchases and expenses and where a single transaction exceeds Rs. 10,000 with the name and address of the payee; and
- Stock register of stock-in-trade.
For details see rule 30 of Income Tax Rules 2002!
Labels: Books of Accounts, Taxation
posted @ 11:31 AM,
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