CA Final · Indirect Tax Laws · Accounts and Records; E-way Bill

During a visit, a proper officer asks Kaveri Foods Ltd, which stores its accounts electronically, to produce its records. The finance manager says that the files are protected by passwords and that the codes used in them are internal, so only a verbal summary can be given. Under the text of Rule 57, what is the position?

On demand, the company must provide details of the electronic files, their passwords, an explanation of codes used where necessary and any other information required for access, together with a sample copy in print form. Refusing on grounds of confidentiality, or giving only a verbal summary, is not permitted under the Rule.

1. AThe company may refuse, as passwords are confidential and are not covered by the Rules
2. BThe company must, on demand, provide details of the files, their passwords, an explanation of codes used where necessary, and other information required for access, along with a sample print copyCorrect
3. CThe company need only provide the passwords, without any explanation of codes or a sample print copy
4. DThe company must give only a hard copy and cannot be asked for access information