CA Final · Indirect Tax Laws · Accounts and Records; E-way Bill
Ruchi Garments, a registered person, receives a demand from the proper officer for its electronic sales ledger. Its accountant says that giving a printout would be enough and that file passwords and code explanations never have to be disclosed. Which view is correct under the CGST Rules, 2017?
The accountant is wrong. When accounts are stored electronically, the registered person must on demand provide details of the files, their passwords, an explanation for codes used where necessary, other information needed for access, and a sample print copy. A mere printout does not discharge this duty.
- AThe accountant is correct, since passwords are confidential under all circumstances
- BThe accountant is correct provided the printout is signed by a Chartered Accountant
- CThe accountant is wrong, because where accounts are stored electronically, file details, passwords and explanation for codes used, where necessary, must be provided on demand with a sample print copyCorrect
- DThe accountant is wrong, but only the passwords must be given, not the code explanations
Explanation
The rule obliges a person storing accounts electronically to provide, on demand, details of files, passwords, explanation for codes used where necessary, other access information and a sample print copy. A printout alone is not the whole obligation. Option D is wrong as code explanations are also covered where necessary.
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