Skip to content

CA Intermediate · Taxation · Accounts and Records

Sharma Traders, a registered person in Indore, has one place of business and keeps its books of account at a godown located in another part of the same city, which is not declared in its registration. Under the CGST Act, 2017, what is the correct position regarding the place where books of account are kept?

Books of account and other records must be maintained at the principal place of business and at every additional place of business shown in the registration. Keeping them at an undeclared godown does not satisfy section 35 of the CGST Act, so the registered person must declare the place or keep records at declared places.

  1. ABooks may be kept at any place in India without any declaration
  2. BBooks must be kept at the principal place of business and at every additional place of business mentioned in the registrationCorrect
  3. CBooks must be kept only with the jurisdictional proper officer
  4. DBooks may be kept at the godown only if the godown is a rented premises

Explanation

Section 35 requires every registered person to keep accounts at the principal place of business and at each additional place of business declared in the registration. A godown not declared in the registration does not qualify as a permitted place for keeping books. Hence, keeping books only there is a non-compliance, and the other options state rules that do not exist.

Did you get it right without looking?

One question tells you little. A timed set on Accounts and Records shows your real accuracy, how long you take and where you lose marks.

Practise Accounts and RecordsFree diagnostic mock

More Accounts and Records questions