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CMA Final · Indirect Tax Laws and Practice · Accounts and Records

Ananya Traders of Pune is registered in Maharashtra and has a principal place of business plus one additional place of business, both shown in its certificate of registration. Where must it keep its accounts under section 35 of the CGST Act?

The accounts relating to each place of business specified in the certificate of registration must be kept at that place of business, while the general rule keeps accounts at the principal place. Hence Ananya Traders keeps each location's accounts at that location.

  1. AAll accounts only at the principal place of business
  2. BAccounts for each place of business at that respective place of business, with the principal place being the default for the othersCorrect
  3. CAccounts of each place of business at the registered office of its chartered accountant
  4. DAccounts only at the additional place where most sales occur

Explanation

Section 35(1) requires accounts to be kept at the principal place of business. The first proviso says that where more than one place of business is specified in the registration certificate, the accounts relating to each place shall be kept at that place. Keeping everything only at the principal place ignores this proviso.

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