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

Sundaram Textiles Pvt Ltd, a registered person in Coimbatore, keeps all its books of account on a cloud-based accounting system. A server crash destroys the primary data. Under the electronic records provisions of the CGST Rules, 2017, what must the company have ensured beforehand?

The company must maintain and preserve proper electronic back-up of its records, so that if they are destroyed by accidents or natural causes, the information can be restored within a reasonable period of time. The duty is continuous and does not depend on any notice.

  1. AThat a proper electronic back-up of records is maintained and preserved so that information can be restored within a reasonable period of timeCorrect
  2. BThat records are printed and filed with the jurisdictional officer every month
  3. CThat a copy of all electronic records is stored only at the company's principal place of business in hard copy
  4. DThat the back-up is created only when the proper officer issues a specific notice

Explanation

The Rules require proper electronic back-up to be maintained and preserved so that, if records are destroyed by accidents or natural causes, information can be restored within a reasonable period. Filing monthly printouts with the officer is not required, and the back-up duty is continuous, not triggered by a notice.

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