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

Kaveri Textiles has its principal place of business in Surat and an additional place of business in Jaipur, both specified in its certificate of registration. Where must the accounts be kept under Section 35 of the CGST Act?

Accounts relating to each place of business specified in the registration certificate must be kept at that place, alongside the principal place of business requirement. Therefore Jaipur's accounts are kept at Jaipur and Surat's at Surat, not all centrally at one location.

  1. AAll accounts at the Surat principal place only
  2. BAll accounts at the Jaipur place, as it holds the stock
  3. CAccounts of each place of business at that respective place, with the principal place holding the accounts as requiredCorrect
  4. DAccounts only in electronic form on the common portal, not at any place

Explanation

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

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